us-sanctions 19 March 2020

Second Rosneft subsidiary in a month lands on OFAC list for alleged Venezuela oil ties

The US Department of the Treasury’s Office of Foreign Assets Control (‘OFAC’) has sanctioned a subsidiary of Russia’s giant Rosneft Oil Company – the second in a month – accusing it of helping sell embargoed Venezuelan crude, as US Treasury Secretary Steve Mnuchin vowed that the US ‘remains committed’ to going after backers of President Nicolas Maduro’s regime.

OFAC ‘designated TNK Trading International S.A. (TTI) for operating in the oil sector of the Venezuelan economy,’ the US Treasury Department said in a statement on 12 March.

It said TTI had stepped in to take over transport and sale of Venezuelan oil after another Rosneft subsidiary, Rosneft Trading S.A (‘RTSA’), was blacklisted by the Treasury Department on 18 February.

‘TNK Trading International S.A. is another Rosneft subsidiary brokering the sale and transport of Venezuelan crude oil, which is subject to sanctions,’ said US Treasury Secretary Steven Mnuchin. ‘The Trump Administration remains committed to targeting those who support the corrupt regime’s exploitation of Venezuela’s oil assets,’ he added.

TTI, which Rosneft obtained in December 2017, is registered in Switzerland, according to the Treasury statement, which claims that ‘Together, TTI and RTSA handled a large percentage of Venezuela’s oil exports in 2019. In January 2020, TTI purchased nearly 14 million barrels of crude oil from Petroleos de Venezuela.’

‘All property and interests in property of TTI that are in the United States or in the possession or control of U.S. persons, and of any entities that are owned, directly or indirectly, 50 percent or more by the designated individuals and entity, are blocked and must be reported to OFAC,’ the Treasury said.