July 3, 2019

OFAC designates Cuban state oil importer, delists ship owner

The Office of Foreign Assets Control of the US Department of the Treasury has designated Cubametales, the Cuban state-run oil import/export company, pursuant to Executive Order 13850, as amended, for supporting the oil sector of the Venezuelan economy.  According to OFAC, Cubametales continues to import oil and fuel-related products from Venezuela, in exchange for military and intelligence services.  As a result of the designation, US property of Cubametales is blocked, and US persons are generally prohibited from dealing with the entity or its property.

OFAC also announced the delisting of PB Tankers S.p.A., which was designated on April 12, 2019 for operating in the oil sector of the Venezuelan economy.  Since its designation, PB Tankers has terminated its charter agreement with Cubametales, and has taken measures to avoid future sanctionable activity.  AS a result, property interests that had been blocked as a result of the designation, including six vessels, are unblocked, and lawful transactions involving US persons are no longer prohibited.