politics
May 5, 2026
US Extends Protection to Citgo: OFAC Issues License to Halt Creditor Actions
The US Department of the Treasury issued general license 5W to protect Citgo from PDVSA creditors
TL;DR
- OFAC issued General License 5W, extending protection for Citgo Petroleum.
- Creditors of PDVSA 2020 bonds are prevented from seizing Citgo to collect debts.
- The prohibition on transactions related to the sale or transfer of Citgo shares in connection with the bond remains in effect until June 19, 2026.
- This license suspends the execution of collateral (50.1% of Citgo shares) by PDVSA 2020 bondholders.
- The extension provides additional time for authorities representing Venezuela's assets in the US to pursue legal processes or debt negotiations.
- Citgo, the seventh-largest refiner in the US, is considered strategically important.
- The US Treasury has maintained a policy of protection through temporary licenses since 2019 to prevent disorderly transfers of control.
- The US government reaffirms its intention to control financial transactions involving Petróleos de Venezuela S.A. in the US.