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An analysis published by Vene Economist examines the distinction between the U.S. Treasury’s proposed rule under the COINS Act and the sanctions framework administered by the Office of Foreign Assets Control (OFAC). Although the Treasury’s proposal no longer classifies Venezuela under the provision associated with the Maduro regime, restrictions on transactions involving the Venezuelan state remain in place.
This distinction is particularly important for international companies considering investments in Venezuela. Changes to the regulatory classification do not automatically authorize transactions that remain restricted under existing sanctions. Businesses must continue to assess whether their activities require specific OFAC licenses or other authorizations before entering commercial agreements, transferring funds, or establishing operations in the country.
U.S. sanctions have been one of the main obstacles to Venezuela’s reintegration into international financial and commercial markets. Even when companies identify investment opportunities in sectors such as oil, electricity, manufacturing, and infrastructure, uncertainty surrounding sanctions compliance can complicate financing, partnerships, and long-term planning.
The proposed regulatory change, therefore, represents a development worth monitoring, but it does not necessarily signal a broader reopening of the Venezuelan economy to U.S. businesses. The relationship between Treasury regulations, OFAC restrictions, and individual licensing decisions will continue to determine which transactions are legally permitted.
For investors, understanding the difference between regulatory changes and actual sanctions relief is essential. Until restrictions are clearly modified or the necessary licenses are granted, companies may continue facing significant barriers to financing projects, signing contracts, and operating in Venezuela.
VZ Economics examines Venezuela’s broader economic recovery strategy, including the structural reforms, institutional changes, and private-sector participation needed to rebuild the country's economy.
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