Sanctions Watch | Weekly Vol. 152

Sanctions Watch Vol 152

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

U.S. Treasury Eases Venezuela Sanctions to Support Potential Debt Restructuring Talks

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License No. 58, authorizing certain legal, financial advisory, and consulting services related to the potential restructuring of Venezuela’s sovereign debt. The license, dated May 5, 2026, allows professionals and firms to provide advisory support to the Government of Venezuela, including state-owned oil company Petróleos de Venezuela, S.A. (PdVSA), and its affiliated entities.

The authorization is intended to facilitate technical and strategic discussions around debt restructuring options, including the preparation of proposals and supporting materials. However, the license clearly restricts activities such as actual debt restructuring transactions, settlement agreements, debt transfers, or direct negotiations between Venezuela and creditors. It also prohibits transactions involving sanctioned individuals or entities, as well as dealings connected to Russia, Iran, North Korea, Cuba, or China.

Additionally, all service providers operating under this license must submit copies of signed service contracts to designated U.S. government email addresses within ten business days. Analysts view the move as a cautious but important step toward possible financial stabilization efforts and future international engagement with Venezuela’s struggling economy.

U.S. Extends Protection for Venezuela’s CITGO Assets While Opening Door for Debt Restructuring Talks

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has issued Venezuela General License 5W, extending protections tied to the Petróleos de Venezuela, S.A. (PDVSA) 2020 8.5% bond until June 19, 2026. The move delays any enforcement actions involving CITGO shares used as collateral for the bond, providing Venezuela additional time to pursue financial restructuring efforts and stabilize its external obligations.

The updated license replaces General License 5V and authorizes transactions related to the PDVSA bond only on or after June 19, 2026. Until then, transfers or sales of CITGO-linked collateral remain prohibited unless specifically approved by OFAC. This extension is viewed positively by analysts because it prevents immediate creditor action against one of Venezuela’s most valuable overseas assets.

In parallel, OFAC has also introduced measures allowing legal and financial advisory services for potential Venezuelan debt restructuring discussions. Experts believe these steps indicate Washington’s willingness to support an organized restructuring framework rather than a disorderly asset seizure process. The development provides temporary stability for PDVSA and creates room for negotiations that could improve Venezuela’s financial outlook and investor confidence in the coming months.

Guernsey Issues New Russia Sanctions General Licence to Support Maritime Insurance Wind-Down

The Policy & Resources Committee of Guernsey has officially issued General Licence GY/RUSSIA/2026/GL2 under the Russia (Sanctions) (EU Exit) Regulations 2019, allowing certain activities linked to maritime insurance and reinsurance wind-down operations. The licence, signed on 5 May 2026, aligns Guernsey’s sanctions framework with a corresponding UK Office of Financial Sanctions Implementation (OFSI) licence, ensuring consistency between UK and Bailiwick regulations.

The measure permits activities that would otherwise be restricted under Russia sanctions rules, provided they comply with the same conditions, terms, and expiry dates specified in the UK licence. The document also introduces a “Table of Modifications,” adapting UK terminology to Guernsey’s legal and financial structure. For example, references to “UK Insurers” now include Bailiwick insurers and reinsurers licensed by the Guernsey Financial Services Commission (GFSC).

Officials stated that the licence may be varied, revoked, or suspended at any time by the Policy & Resources Committee. The move is viewed as an effort to provide regulatory clarity for financial institutions and insurance intermediaries operating within the Bailiwick while maintaining compliance with international sanctions obligations.

UK Unveils Sweeping Sanctions Against Russian Propaganda Networks and Child Deportation Operations

The United Kingdom has announced one of its strongest sanctions packages yet against Russia, targeting 85 individuals and entities linked to hostile influence operations, propaganda campaigns, and the forced deportation of Ukrainian children. The measures aim to expose and disrupt Kremlin-backed efforts to undermine democracy, spread disinformation, and erase Ukrainian identity in occupied territories.

Among those sanctioned are 49 individuals associated with the Social Design Agency (SDA), a Kremlin-funded organisation accused of orchestrating information warfare campaigns across Europe, including alleged attempts to interfere in Armenia’s upcoming elections by promoting pro-Russian political influence. Another sanctioned entity, ANO Dialog, has reportedly worked closely with Russian intelligence services on coordinated disinformation operations.

The UK also targeted organisations involved in the militarisation and ideological indoctrination of Ukrainian children. These include the “Warrior Centre,” where children are reportedly subjected to military-style training and pro-Kremlin narratives, and Yulia Velichko, a Russian-backed official accused of facilitating deportation programmes and issuing Russian passports to children from occupied Ukrainian territories.

Additionally, the UK pledged £1.2 million to support international efforts to trace and return displaced Ukrainian children, reaffirming its continued commitment to Ukraine and democratic security in Europe.

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