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business12h ago
How U.S. Companies May Return to Venezuela and Be Compliant
- Latest development: U.S. sanctions discussions could lead to broad or targeted relief enabling new investment in Venezuela's oil sector.
- Sanctions may remain in place for certain actors, requiring careful screening of counterparties and compliance with licenses.
- Corruption risk is high in Venezuela, where 90% of surveyed businesspeople view corruption as a significant obstacle.
- PDVSA, the state-owned oil company under U.S. sanctions, is central to plans to revive the energy sector but carries high risk.
- A proposed security model could involve the military escorting projects, potentially increasing interactions with officials.
- Companies should implement strict compliance programs, due diligence, and counterparty screening before entering high-risk markets.
- Licensing paths require robust compliance, with possible general licenses or specific licenses guiding activities.
- Discussions emphasize careful alignment with legal obligations to avoid dealings with sanctioned parties and illicit actors.
- The piece frames Venezuela's potential as recoverable if governance and oversight are strengthened.
- Sanctions landscape will influence how and whether U.S. firms re-engage with PDVSA and related entities.
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