United States Imposes New Economic Sanctions on Venezuela; Sanctions 16 Entities and Individuals for Dealings with North Korea

Last week, President Trump issued an Executive Order imposing new economic sanctions on the Venezuelan government in response to President Nicolás Maduro’s increasingly authoritarian actions. The new sanctions expand the U.S. restrictions against Venezuela, which previously were comprised of sanctions against a few key individuals, but they do not amount to a comprehensive economic embargo (such as those against Cuba and Iran). Rather, the new measures aim to restrict the Maduro regime’s access to financial markets and capital, subject to certain limitations intended to minimize the impact on U.S. businesses and the Venezuelan people.

Separately, on August 22, 2017, in response to the threat posed by recent, high-profile advances in North Korea’s nuclear and ballistic missile programs, OFAC designated 10 entities and six individuals for violating or evading U.S. and UN sanctions targeting North Korea.

Covington has deep experience advising clients on the legal, policy, and practical dimensions of international sanctions, including with respect to Venezuela and North Korea. We will continue to monitor developments in this area, and are well-positioned to assist clients in understanding how these recent announcements may affect their business operations.