Today, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) designated the Cuban company Corporación Panamericana SA pursuant to Executive Order (EO) 13850 as owned or controlled by Cubametales, an entity part of or having acted on its behalf and designated on July 3rd, 2019 to operate in the oil sector of the Venezuelan economy.
“Cuba has played a direct role in preventing the return of democracy to Venezuela,” said Treasury Undersecretary Justin G. Muzinich. “The Treasury continues to pursue sanction evaders to deny resources to the illegitimate Venezuelan regime.”
Since its appointment on July 3rd, 2019, Cubametales, the Cuban state-owned oil import and export company, has faced significant pressure as companies refuse to do business with them as a result of its designation. In response, Cubametales repeatedly offered Corporación Panamericana S.A. as an intermediary to continue operations and avoid sanctions. Today’s action against Corporación Panamericana S.A. demonstrates OFAC’s continued commitment to focus on the facilitation activities of designated entities, such as Cubametales, an entity that has refused to end its support of Maduro’s illegitimate regime.
At the behest of Cubametales, Corporación Panamericana SA replaced Cubametales in several energy and international commercial businesses with several countries, including the transfer of Cubametales employees to Corporación Panamericana SA. For example, in the summer of 2019, a North African company refused to do business with Cubametales due to U.S. sanctions against it. In response, Cubametales offered Corporación Panamericana S.A. as a non US-designated intermediary, and Corporación Panamericana S.A. took over Cubametales’ business relations with the company. Corporación Panamericana S.A. then executed commercial activities related to oil deliveries that were previously executed by Cubametales. After taking over this agreement, Corporación Panamericana S.A. kept Cubametales’ officials informed of the details of the contract.
Similarly, in an effort to continue Cubametales’ ongoing sanctions evasion activities, Corporación Panamericana S.A. incorporated Cubametales employees following the OFAC’s designation of Cubametales. In the summer of 2019, an official of Cubametales, who also held a position with the same duties at Corporación Panamericana S.A., negotiated an agreement with a European company for the shipment of gasoline to Cuba.
As a result of today’s action, all assets and interests in the property of these entities, and of any entity owned, directly or indirectly, in 50 percent or more of the designated entities, that are in the United States or in the possession or control of the Americans are blocked and must be reported to OFAC. OFAC regulations generally prohibit all transactions conducted by U.S. persons or within (or in transit through) the United States involving any property or interest in the property of blocked persons.
OFFICE OF FOREIGN ASSETS CONTROL
Specially Designated Nationals List Update
The following entity has been added to OFAC’s SDN List:
CORPORACION PANAMERICANA S.A., Ave. 7MA. No. 6209 E/ 62 Y 66, Playa, Miramar, Havana, Cuba [VENEZUELA-EO13850] (Linked To: CUBAMETALES)