The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated TNK Trading International S.A. (TTI) for operating in the oil sector of the Venezuelan economy.
TTI, incorporated in Switzerland, is a subsidiary of Russian state-controlled Rosneft Oil Company. After the February 18, 2020 Treasury designation of Rosneft Trading S.A. (RTSA), cargoes of Venezuelan oil allocated to RTSA were changed to TTI in order to evade U.S. sanctions.
TNK Trading International S.A. is another Rosneft subsidiary brokering the sale and transport of Venezuelan crude oil, which is subject to sanctions. The Trump Administration remains committed to targeting those who support the corrupt regime’s exploitation of Venezuela’s oil assets
commented Secretary Steven T. Mnuchin.
OFAC has previously identified Rosneft Oil Company as operating in the energy sector of the Russian Federation pursuant to Ukraine-/Russia-related E.O. 13662 and as such, it and any entities owned, directly or indirectly, 50%or more by Rosneft Oil Company, including RTSA and TTI, are subject to certain restrictions under Ukraine-/Russia-related Directives 2 and 4.
OFAC also added that U.S. sanctions need not be permanent and are intended to change behavior. The United States will consider lifting sanctions for those who take concrete, meaningful, and verifiable actions to support democratic order in Venezuela.
What is more, OFAC is issuing General License 36A to authorize certain transactions and activities that are ordinarily incident and necessary to the wind down of transactions involving RTSA or TTI through 12:01 a.m. eastern daylight time, May 20, 2020.
As a result of today’s action, all property and interests in property of TTI that are in the United States or in the possession or control of U.S. persons, and of any entities that are owned, directly or indirectly, 50% or more by the designated individuals and entity, are blocked and must be reported to OFAC.
