The US Department of the Treasury authorized four US energy companies with operations in Venezuela to cancel taxes to the Venezuelan government, in contrast to the repeated message not to cancel or give resources to the administration of President Nicolás Maduro.
The regulation is headed "Venezuelan Sanctions Regulation 31 CFR part 591 General License Number 8 L", with summary: "Authorization of Transactions Involving Petróleos de Venezuela, SA (PDVSA) Necessary for the Limited Maintenance of Essential Operations in Venezuela or the Liquidation of Operations in Venezuela for Certain Entities”.
The license authorizes until November 19 the transactions of Halliburton, Schlumberger Limited, Baker Hughes Holdings LLC and Weatherford International, Public Limited Company English, with PDVSA.
In its cryptic language, the content authorizes activities that are normally incidental to and necessary for the limited maintenance of essential operations, contracts or other agreements, that are for the security or conservation of assets in Venezuela and involve PDVSA or any entity in which the state owns, directly or indirectly, 50% or more of shares, effective before July 26, 2019.
Further on it explains that the transactions and activities necessary for the security or preservation of assets in Venezuela authorized in this general license include the transactions and activities necessary to guarantee the security of personnel or the integrity of operations and assets; payments of third-party invoices for transactions and activities incurred before April 21, 2020, and payment of local taxes and purchase of public services in Venezuela and payment of salaries of employees and contractors in Venezuela.
The gringos decide...