In less than three months, the legal landscape governing U.S. commercial activity in Venezuela has undergone its most significant transformation in years. Between January and March 2026, the Office of Foreign Assets Control (OFAC) issued a series of new and amended General Licenses under the Venezuela Sanctions Regulations (31 CFR Part 591) that have materially expanded the scope of authorized commercial engagement for U.S. companies, investors, and service providers.
The signal is clear: the U.S. government has made a deliberate policy decision to facilitate legitimate American commercial participation in Venezuela’s economy — particularly in the energy, electricity, and minerals sectors. For companies and investors that have been waiting on the sidelines, now is the time to evaluate their position carefully, act on it, and ensure they do so with a sound compliance framework in place.
The Prior Framework and Its Constraints
Venezuela has been subject to comprehensive U.S. sanctions since 2019, when Executive Order 13884 imposed blocking sanctions on the Government of Venezuela and all entities it owns or controls — including Petróleos de Venezuela, S.A. (PdVSA), CORPOELEC (the state electricity utility), and a broad range of state entities. As a result, virtually all commercial dealings between U.S. persons and Venezuela’s government-controlled economy required either a specific OFAC license or the shelter of a narrow General License.
The prior General License framework was primarily focused on the petroleum sector — specifically crude oil offtake by established U.S. entities — leaving significant portions of the economy, including the electricity and minerals sectors, either unaddressed or expressly restricted. Companies in industrial, infrastructure, and technology sectors that wanted to supply goods or services to Venezuelan state entities had very limited pathways to do so lawfully.
What Changed: The Key 2026 Authorizations
Electricity Sector — A Fundamental Shift
The most consequential development is the amendment of General License 48A on March 13, 2026. The prior version of GL 48 authorized U.S. persons to supply goods and services to Venezuela’s oil and gas sector. GL 48A expands that authorization to expressly include Venezuela’s electricity sector — covering generation, transmission, storage, and distribution.
The practical implication is significant: CORPOELEC, Venezuela’s state-owned electricity monopoly, is now an authorized counterparty under U.S. law for U.S. equipment manufacturers, technology providers, EPC contractors, and service companies. A transaction structure that would have been the highest-risk category under the prior framework is now one of the most clearly authorized. Companies in the power infrastructure and grid technology space should take particular note.
Petrochemicals and Broader Oil Authorization
General License 46B, also amended on March 13, expanded the authorization for established U.S. entities to include Venezuelan-origin petrochemical products — beyond crude oil and refined petroleum — for importation into the United States. Fertilizers and precursor chemicals are now expressly within scope. This creates new commercial opportunities for U.S. commodity traders, chemical importers, and agricultural supply companies.
GL 52 — A Broader PdVSA Authorization Backstop
On March 18, 2026, OFAC issued General License 52, providing established U.S. entities with a broader authorization for transactions involving PdVSA and PdVSA entities beyond what the commodity-specific licenses cover. GL 52 serves as a backstop for established U.S. entities navigating PdVSA-adjacent transactions that may not fit neatly within the oil, gas, or electricity GL categories.
Venezuelan Minerals — A New Commercial Track
A parallel set of licenses — GL 51A, GL 54, and GL 55 — has opened Venezuela’s minerals sector, including gold, to U.S. commercial participation. GL 51A authorizes established U.S. entities to trade and process Venezuelan-origin minerals already in the commercial stream. GL 54 authorizes any U.S. person to supply goods and services to minerals operations in Venezuela. GL 55 authorizes U.S. persons to enter contingent investment contracts for Venezuela’s minerals sector, with actual performance conditioned on separate OFAC authorization.
Investment Contracting — GL 49A
General License 49A authorizes U.S. persons to negotiate and enter into contingent contracts for new investment in Venezuela’s oil, gas, petrochemical, and electricity sectors. The license allows parties to execute binding term sheets, MOUs, agreements in principle, and bid submissions — without waiting for separate OFAC authorization to engage commercially. Importantly, the contingency upon OFAC authorization must appear expressly in the contract itself; implied contingencies are legally insufficient under GL 49A.
Who Is Affected — and How
The 2026 GL framework creates direct commercial relevance for a wide range of U.S. companies and investors:
- Power infrastructure and grid technology companies: GL 48A is now the primary authorization for goods and services to CORPOELEC and Venezuela’s broader electricity network. Companies supplying switchgear, reclosers, transformers, cable accessories, protection systems, and grid automation equipment are directly within scope.
- Petroleum and petrochemical companies: The GL 46B expansion and GL 52 backstop create new offtake and supply opportunities for established U.S. entities in the oil, gas, and petrochemical space.
- EPC contractors and engineering firms: Companies providing project management, construction, installation, maintenance, and technical services to Venezuela’s energy and electricity infrastructure now have a clear authorization pathway.
- Technology and software companies: Providers of industrial software, automation systems, and operational technology for oil, gas, and electricity operations are expressly covered by GL 48A.
- Commodity traders and minerals companies: The GL 51A / GL 54 / GL 55 framework creates a new track for Venezuelan gold and other minerals, from trading to in-country services.
- Maritime and logistics companies: GL 30B remains the operational framework for port and airport services, working in conjunction with GL 46B and GL 48A for energy-related shipping.
- Financial institutions and lenders: New transaction volumes create demand for trade finance, letters of credit, payment processing under the FGDF channel, and working capital structures.
Critical Compliance Requirements
Authorization under the new GLs is not self-executing. Transactions that qualify under the applicable license must also satisfy a set of conditions that carry their own compliance obligations:
U.S. Law and Dispute Resolution
All contracts with the Government of Venezuela, PdVSA, or their entities under the principal operational licenses must contain U.S. governing law clauses and provide for U.S. dispute resolution. This is a substantive contract drafting requirement, not a negotiating preference.
Foreign Government Deposit Funds (FGDF)
Monetary payments to blocked persons under GL 46B, GL 48A, GL 51A, GL 52, and GL 54 must be routed through the Treasury-controlled FGDF mechanism, established under E.O. 14373 in January 2026. This is not a standard commercial wire transfer. Companies need to establish FGDF account access through the State Department before any payment is processed.
OFAC Reporting Obligations
Most of the operational licenses carry reporting obligations to the State Department and either the Department of Energy (for oil/gas/electricity) or the Department of Interior (for minerals). Initial reports are due within 10 days of the first transaction, with quarterly or monthly follow-up reports. Failure to comply with reporting requirements — even for otherwise authorized transactions — can constitute a sanctions violation.
Prohibited Jurisdiction Restrictions
The current GL framework contains express prohibitions on transactions involving persons or entities connected to Russia, Iran, North Korea, Cuba, or the People’s Republic of China. These restrictions apply not only to Venezuelan counterparties but also to the transacting company itself — ownership by a sanctioned-jurisdiction person at the entity level can disqualify an otherwise authorized transaction.
BIS/Export Controls — A Parallel Regime
OFAC authorization is not export authorization. Companies supplying goods, software, or technology to Venezuela under the new GLs must independently satisfy U.S. export control requirements administered by the Commerce Department’s Bureau of Industry and Security (BIS). These are parallel regulatory regimes that must both be addressed in any transaction analysis.
The 50 Percent Rule applies to all counterparty analysis. An entity that does not appear on OFAC’s SDN list may still be blocked if the Government of Venezuela or PdVSA owns, directly or indirectly, 50% or more of its interests. Independent ownership analysis is required for every counterparty — name-list screening alone is insufficient.
What This Means in Practice
The opening of Venezuela’s commercial space under the new GL framework is real, but it is structured and conditional. The commercial opportunity is meaningful — Venezuela’s energy infrastructure is severely deteriorated, the electricity sector is in particular need of investment and equipment, and the Venezuelan government has signaled a desire to engage with U.S. commercial partners. At the same time, the compliance architecture is complex, transaction-specific, and evolving.
Companies that move with the right legal foundation — sound GL analysis, proper contract structuring, FGDF payment mechanics, reporting compliance, and export control clearance — are well positioned to capture first-mover advantage in a market that is opening after years of restriction. Companies that move without that foundation risk OFAC enforcement actions, reputational damage, and transaction failure.
The pace of GL amendments in 2026 — multiple new licenses and revisions in less than three months — also signals that the framework will continue to evolve. Compliance positions established today should be reviewed regularly against OFAC’s published GL stack.
Leech Tishman’s Latin America legal team has developed a comprehensive OFAC compliance framework focused on Venezuela sanctions. Our team is prepared to assist clients throughout the evolving GL landscape through 2026. Our team has significant experience in:
- Transaction-specific GL analysis and written compliance opinions for Venezuela-related deals
- Contract structuring to satisfy U.S. law, U.S. forum, and FGDF payment conditions
- Beneficial ownership and counterparty screening under the 50 Percent Rule
- BIS/export control coordination for goods, technology, and software transactions
- FGDF payment mechanics and State Department reporting compliance
- Market entry strategy and cross-border structuring for Latin American companies and investors
- Ongoing compliance retainer services for companies with recurring Venezuela operations
- Coordination and work with local counsel to ensure that activities are in full compliance under new laws in Venezuela.
For a confidential consultation regarding your specific Venezuela opportunity or compliance question, please contact Head of Leech Tishman’s Latin America Practice, Esteban Elias, at eelias@leechtishman.com.