Washington, DC [US], September 29 (ANI): The United States has revised three Venezuela sanctions licences to list methanol among the petrochemical products covered by authorisations for certain oil trade, supplies and preliminary investment negotiations.
The Treasury Department's Office of Foreign Assets Control (OFAC) issued General Licences 46E, 48D and 49B as replacements for previous versions. A comparative review shows that methanol has been added across five tariff classifications within the chemical annex of each licence, while the primary permissions and restrictions remain largely unchanged.
The amendments do not constitute a broad removal of sanctions against Venezuela. They also do not announce any commercial shipments or investments, or provide projections regarding potential methanol volumes traded under the updated framework.
General Licence 46E authorises an established US entity to engage in designated transactions involving Venezuelan oil or petrochemical products destined for import into the United States. Its provisions cover activities including transportation, sale, storage and refining, subject to specified conditions.
The licence defines an established US entity as one organised under US law before January 29, 2025. It also imposes reporting requirements when Venezuelan-origin oil is distributed or supplied to jurisdictions outside the United States under its authority, requiring disclosures on parties, quantities, financial values, destinations and remittances to the Venezuelan government.
The second update, General Licence 48D, governs designated goods, software, technology and services provided from the United States or by a US person in support of oil, gas and petrochemical operations in Venezuela, alongside specified maintenance activities concerning the country's electricity grid.
The authorisation covers the upkeep and repair of ongoing operations but explicitly prohibits the establishment of new joint ventures in Venezuela or transactions involving diluent exports to the country. Entities using the provision are required to submit transaction reports to the US State and Energy departments in accordance with the licence requirements.
General Licence 49B regulates preliminary investment activities, allowing negotiations and contingent agreements for prospective oil, gas, petrochemical and power projects. However, the execution of such contracts continues to require separate OFAC approval. The licence also permits preparatory activities, including legal, technical, safety and environmental assessments.
All three administrative documents define petrochemical products as including fertiliser items and precursor chemicals. Their updated annexes list methanol alongside substances such as urea, ammonia, phosphates and sulphuric acid. Previous annexes did not specifically name methanol, while containing the other listed substances.
The trade and supply licences require agreements concluded with the Venezuelan government or the state petroleum enterprise to include dispute-resolution provisions seated in the United States, Britain, France or Singapore. Financial transfers to blocked entities, excluding designated local taxes, licences or fees, must comply with specified Treasury account protocols.
The instruments retain exclusions targeting specific parties associated with Russia, Iran, North Korea, Cuba and China, as well as blocked maritime vessels, with minor variations in the wording concerning China across the documents. None of the revised texts references India, any Indian enterprise or any specific methanol cargo.
Methanol is an industrial chemical used in the manufacture of secondary chemical products and can also function as a fuel or fuel additive. The US modifications relate strictly to the parameters of sanctions exemptions and establish neither pricing benchmarks nor purchasing mandates for commercial enterprises. (ANI)
US adds methanol to Venezuela trade licences
