WILLEMSTAD - The reintroduction of US sanctions against Venezuela will not impact the agreement between the Venezuelan state oil company PDVSA and Refineria di Kòrsou (RdK), according to RDK Director Patrick Newton.
Curaçao is said to have a specific license that gives the green light to sell oil from Venezuela and settle debts with the owner of the refinery. In December, an agreement was signed by representatives of PDVSA, the Venezuelan government, RdK, and the government of Curaçao, allowing RdK to sell Venezuelan oil to settle overdue debts incurred after the closure of the Isla refinery.
There were long-standing legal disputes, but eventually, it was decided that a negotiated agreement outside the court was in the best interest of both countries. Newton explains that although US sanctions may be reintroduced by mid-April, RdK obtained its own OFAC license in November 2023, enabling direct oil deliveries from PDVSA to fulfill the "crude for debt" agreement. Even if the US reactivates sanctions, Newton states that it will not affect the deal between PDVSA and RdK.
OFAC, the US body managing and enforcing economic and commercial sanctions, focuses on countries, terrorists, international drug traffickers, individuals involved in the production of weapons of mass destruction, and other threats to the national security, foreign policy, or economy of the United States. OFAC applies both general and selective sanction programs, including asset blocking and commercial restrictions.