Sanctions Watch | Weekly Vol. 158

Sanctions Watch Vol 158

In the latest edition of our Sanctions Watch weekly digest, we present significant updates on sanction watchlists and regulatory developments.

OFAC Extends Relief for PDVSA 2020 Bond Transactions, Opening Path for Greater Market Certainty

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License No. 5X, authorizing transactions related to the Petróleos de Venezuela, S.A. (PDVSA) 2020 8.5% Bond beginning August 4, 2026. The new license permits transactions, financing activities, and other dealings involving the bond that would otherwise be restricted under U.S. sanctions regulations tied to Executive Order 13835.

The authorization provides greater clarity and predictability for financial institutions, bondholders, and market participants with interests in the PDVSA 2020 bond. By establishing a clear date from which such transactions may proceed, OFAC reduces uncertainty surrounding the treatment of the security and supports more orderly market activity.

General License 5X replaces and supersedes General License 5W, reflecting the U.S. government’s continued efforts to provide targeted sanctions relief while maintaining broader restrictions under the Venezuela Sanctions Regulations. Although all other sanctions requirements remain in force, the license creates a defined pathway for permissible dealings in this specific bond instrument.

The announcement is viewed as constructive for investors, as it enhances legal certainty, facilitates future transaction planning, and may improve confidence in managing exposures related to Venezuelan sovereign and state-linked debt assets.

EU Unveils Sweeping New Sanctions on Russia, Targeting War Economy, Shadow Fleet and Propaganda Networks

The European Union has adopted a new package of sanctions against Russia, intensifying pressure over its ongoing war against Ukraine, hybrid activities, and human rights violations. Announced by the Council of the EU on 15 June 2026, the measures add 34 individuals and 47 entities to the sanctions list.

The sanctions primarily target Russia’s military-industrial complex, energy revenue streams, propaganda networks, and individuals linked to the persecution of opposition leader Alexei Navalny. The EU sanctioned seven individuals and 21 entities involved in supplying drones, military equipment, and advanced technologies to Russian armed forces, including Russian and Chinese companies supporting Moscow’s defense sector.

To curb Russia’s oil income, the package also targets the “shadow fleet” used to evade existing sanctions, listing 24 entities and two individuals involved in transporting Russian crude oil and petroleum products. Several companies based in Russia, the UAE, Türkiye, Azerbaijan, Liberia, and Hong Kong are affected.

Additionally, the EU sanctioned prominent Russian propagandists, media figures, and organizations accused of spreading disinformation and justifying the war. Fifteen individuals and one entity were listed for their alleged involvement in the poisoning, persecution, and death of Alexei Navalny.

The EU also extended sanctions related to Russia’s illegal annexation of Crimea and Sevastopol until 23 June 2027.

U.S. Expands Telecommunications and Mail Exemptions Under Venezuela Sanctions with New General License 24A

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License 24A under the Venezuela Sanctions Regulations (31 CFR Part 591). Effective June 18, 2026, the new license replaces and supersedes General License 24 issued in 2019, reaffirming and clarifying authorizations for certain transactions involving the Government of Venezuela.

The license allows all transactions that are incident to the receipt and transmission of telecommunications, even when such activities involve Government of Venezuela entities that are blocked solely under Executive Order 13884. Additionally, it authorizes transactions by common carriers related to the receipt, transmission, and delivery of mail and packages to, from, or within Venezuela.

This measure supports the continued flow of communication services and postal operations, helping businesses, service providers, and individuals maintain essential connectivity and exchange of information. By preserving access to telecommunications and mail channels, the authorization promotes practical engagement and reduces disruptions in everyday communications.

However, the license does not authorize dealings with blocked persons beyond those specifically covered, nor does it override other applicable sanctions or export control requirements. Exporters must continue complying with regulations administered by other U.S. agencies, including the Department of Commerce’s Bureau of Industry and Security (BIS).

UK Amends Lukoil General Licence on 19 June 2026, Extending Business Continuity Permissions Until August 2026

The Office of Financial Sanctions Implementation (OFSI) amended General Licence INT/2025/8031092, providing continued regulatory relief for business activities involving Lukoil International GmbH and its subsidiaries. The amendment extends the licence’s validity until 25 August 2026, allowing businesses and financial institutions additional time to maintain lawful commercial relationships while complying with UK Russia sanctions regulations.

The licence permits persons and organizations to continue business operations involving Lukoil International and its subsidiaries, including making and receiving payments under existing or new contracts, fulfilling contractual obligations, and providing or receiving economic resources. The framework also enables relevant UK financial institutions to process transactions that fall within the scope of the licence.

The 19 June 2026 amendment is a positive development for companies with ongoing dealings involving Lukoil International, as it reduces the risk of operational disruptions and provides greater certainty for managing contractual commitments. While sanctions-related safeguards remain in place, including requirements concerning funds payable to designated entities, the licence ensures that legitimate business activities can continue within a clearly defined compliance framework.

By extending and updating the licence, OFSI has reinforced a practical approach to sanctions implementation, supporting business continuity, financial stability, and orderly commercial operations while maintaining the broader objectives of the UK’s Russia sanctions regime.

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Sanctions Watch is a weekly recap of events and news related to sanctions around the world.