This action highlights the intention of the US authorities to interpret their sanctions regime against Venezuela as applying to non-US persons and to deem that any ship involved in the petroleum trades between Venezuela and Cuba is undertaking sanctionable activity with an attendant risk of being designated.

In addition, becoming a SDN has grave implications for the trading and insurance cover of any designated vessel.

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As previously noted there is a risk that the US will likewise deem that any vessel carrying out activity involving PDVSA is engaged in the Venezuelan oil sector and is thus at risk of designation. Operators are reminded to carefully consider the risks when deciding whether to engage in any trades involving PDVSA and if they involve the carriage of oil or petroleum products from Venezuela to Cuba. If in doubt, US advises operators to contact the Managers for further advice.

Previously, on April 10, the US Treasury decided to blacklisting a Greek tanker. Specifically, the US Department of Treasury blacklisted two shipping firms and their vessel, Despina Adrianna. The latter was busted transporting oil from Venezuela to Cuba, according to OFAC, in an alleged violation of American sanctions on Venezuelan oil company PDVSA.