Nevertheless, the OFAC authorization does not allow any payment-in-kind of petroleum or petroleum products.
On Thursday, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) renewed until July 12, 2023 License 40A, which authorizes certain transactions involving the export or re-export of liquefied petroleum gas to Venezuela.
Last year, the U.S. government issued a similar license whose validity will end on Friday. The 2021 authorization, however, remained without being used effectively since it prohibits supplier companies from accepting payment-in-kind of petroleum or petroleum products from the Venezuelan state-owned oil and gas company PDVSA, as recalled by EuroNews.
The same happens with the authorization signed today by OFAC Director Andrea Gacki since it states that the "general license does not authorize any payment-in-kind of petroleum or petroleum products."
Nevertheless, PDVSA is currently producing some 27,000 LPG barrels per day, which covers most of the domestic cooking gas demand, EuroNews noted, adding that gas imports were made to offset supply shortfalls in the past.
#Caricom urged the US government to remove sanctions against #Venezuela Ralph Gonsalves, Prime Minister of St. Vincent and the Grenadines said: "The unilateral sanctions imposed by the Donald Trump administration effectively ended the Petrocaribe agreement" pic.twitter.com/RPJL75VKfB— teleSUR English (@telesurenglish) July 7, 2022