US Government Poised to Approve Sale of Citgo Shares

The US government is preparing to release guidelines that will allow for the embargo of Venezuelan company Citgo’s shares to be executed, so that at least eight companies can receive compensation for the expropriation of their assets during Hugo Chavez’s government.

On 28 April, a letter from the Department of Justice was made public in which it responded to special master appointed by Judge Leonard P. Stark of the Delaware District Court, clarifying the situation of the sale of the shares of the Venezuelan state company in relation to sanctions and asset protection measures.

Following a plan prepared by the special master, Robert B. Pincus, Judge Stark ordered in October 2022 that the process for the sale of Citgo shares be initiated, but clarified that its final execution was subject to the issuance of a license from the Office of Foreign Assets Control (OFAC).

The US government will issue a public guide that establishes that, under these circumstances, the OFAC will not take action against persons or entities for participating in or complying with the preliminary steps established in the Sales Order, as well as those who carry out transactions that are incidental and necessary for participation and compliance with such steps, for example, potential or actual bidders.

Citgo is currently managed by the Ad Hoc Board of Pdvsa, appointed by interim president Juan Guaidó and now accountable to the National Assembly (2016) after the dissolution of the interim government.