USA Trends and Developments Contributed by: Bruce G. Paulsen, Brian Maloney and Hannah Thibideau, Seward & Kissel LLP
licence authorising the production, delivery and sale of Iranian oil, petrochemical products, and petrole - um products for a 60-day period that roughly tracks the MOU’s negotiation window. The licence, General License (GL) X, authorises transactions ordinarily inci - dent to the “production, sale, delivery or offloading of Iranian crude oil, petrochemical products, or petro - leum products of Iranian origin” that would otherwise be prohibited by US sanctions programmes. GL X is broader than the administration’s previous licence, GL U, which allowed crude and refined products already loaded on tankers to be sold, and it provides more sig - nificant relief to Iran’s oil and petrochemical sectors. Even though the US agreed to provide broad sanc - tions relief during the negotiation period, including GL X’s authorisation of payments in US dollars, it is a frag - ile and temporary measure issued within an existing regulatory framework that remains broadly hostile to the Iranian government and its agencies and instru - mentalities. At the time of writing, since the signing of the MOU, dozens of ships have resumed crossing through the Strait of Hormuz. However, traffic has not reached its pre-war pace, which saw about 100 to 130 vessels a day crossing the Strait. Tension remains between the United States and Iran despite their ongoing negotia - tions under the MOU, and the situation remains vola - tile and unpredictable. Venezuela After Maduro: Sanctions Policy Changes Afoot On 3 January 2026, the US military captured Ven - ezuelan leader Nicolás Maduro and transferred him to the United States to face federal criminal charges. Maduro was replaced by Delcy Rodríguez. Since this regime change, OFAC has eased Venezuela-related sanctions and has issued general licences to promote trade and investment in Venezuela’s oil, gas and min - erals industries. These recent general licences permit specific oil, gas, petrochemical and electricity sector activities that had previously been prohibited for US persons. These authorisations include exports and imports of Vene - zuelan-origin crude oil and refined products, sales of US-origin diluents, and the provision of goods, servic -
es and technology necessary to operate energy and petrochemical facilities. Multiple licences also author - ise negotiation of contingent investment contracts and, in limited cases, named companies to resume operations with entities owned by Petróleos de Ven- ezuela , SA (PdVSA). These licences do not have set expiration dates and will remain in effect unless they are updated or replaced by OFAC. Separate licences are focused on the minerals sector, authorising sales and the supply of US-origin goods and services for mining operations by previously established US entities in Venezuela. Other licences permit financial services to certain Venezuelan banks and authorise legal, financial and consulting services related to potential debt restructuring or contingent investment negotiations. While these recent licences signal OFAC’s encourage - ment for US re-engagement in Venezuela, OFAC has coupled these authorisations with strict compliance and reporting guidelines. Entities relying on the new licences should carefully review the requirements of each licence and conduct diligence to ensure compli - ance with all new and existing regulations when enter - ing or re-entering the region. Continued monitoring of OFAC guidance and licences will also be essential to avoid running afoul of OFAC’s requirements. China: Continued Tensions and Investment Controls The Comprehensive Outbound Investment National Security Act (the “COINS Act”) was enacted on 18 December 2025 as part of the FY 2026 National Defense Authorization Act (NDAA). The COINS Act codifies and expands existing restrictions on US out - bound investments imposed by the Outbound Invest - ment Security Program under Executive Order 14105 (the “Outbound Program”). The Outbound Program prohibits, or requires notification of, certain direct and indirect investments by US persons in entities with a nexus to China that are engaged in activities involving semiconductors and microelectronics, quantum infor - mation technologies, and artificial intelligence. The COINS Act broadens the restrictions imposed by the Outbound Program in meaningful ways. Nota - bly, the COINS Act expands the definition of cov -
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