GL-56
ActiveAuthorizing Commercial-Related Negotiations of Contingent Contracts with the Government of Venezuela
Summary
General License No. 56 authorizes all transactions prohibited by E.O. 13884 that are ordinarily incident and necessary to engaging in commercial-related negotiations of contingent contracts with the Government of Venezuela. Any contract entered into under this license must be made expressly contingent upon separate authorization from OFAC before it can be performed. The license covers a broad range of pre-contractual instruments including executory contracts, pro forma invoices, agreements in principle, bids, proposals, and binding memoranda of understanding.
Authorized activities
- Engaging in commercial-related negotiations of contingent contracts with the Government of Venezuela
- Executing executory contracts contingent on OFAC authorization
- Executing executory pro forma invoices contingent on OFAC authorization
- Entering into agreements in principle contingent on OFAC authorization
- Submitting bids or proposals in response to public tenders contingent on OFAC authorization
- Entering into binding memoranda of understanding contingent on OFAC authorization
- Any other similar contingent agreement ordinarily incident and necessary to commercial-related negotiations with the Government of Venezuela
Conditions
The entry into and performance of any contract must be made expressly contingent upon separate OFAC authorization. The license does not authorize: transactions prohibited by E.O. 13808 (bonds/debt of Venezuela or PdVSA) or E.O. 13835 (equity interests in PdVSA); non-commercially reasonable payment terms, debt swaps, gold payments, or Venezuela-issued digital currency (including the petro); settlement agreements or enforcement of liens/judgments against blocked property; transactions involving persons in Russia, Iran, North Korea, or Cuba; transactions involving entities in Venezuela or the U.S. owned/controlled by or in a joint venture with Chinese persons; transactions involving SDN-listed persons or entities 50% or more owned by SDN-listed persons; or the unblocking of any property blocked under 31 CFR Chapter V.