US sanctions put squeeze on Cubametales

The Office of Foreign Assets Control places subsidiary to Cuban state-run oil shipper, Corporacion Panamericana, on blacklist for circumventing sanctions against Venezuela’s oil sector.

Oil tankers docked at a terminal in Santiago de Cuba, Cuba. {Photo Credit: Shutterstock]

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has Cuban state-run oil importer and exporter Cubametales in its regulatory sights.

On Nov. 26, the agency added Corporacion Panamericana S.A. to the Specially Designated Nationals and Blocked Persons (SDN) List for being controlled and acting on behalf of Cubametales to get around U.S. sanctions against Venezuela’s oil sector, which provides financial support to the Maduro regime.

“Cuba has played a direct role in preventing the return of democracy to Venezuela,” said Treasury Deputy Secretary Justin G. Muzinich in a statement.  “Treasury continues to pursue sanctions evaders to deny resources to the illegitimate Venezuelan regime.”

OFAC added Cubametales to the SDN List on July 3. Since then, Cubametales has used Corporacion Panamericana in various energy deals and international commercial dealings with several countries. It has even shifted some of its management to the subsidiary, the agency said.

OFAC noted that a Cubametales official, who also held a position with the same duties at Corporacion Panamericana, negotiated a deal during the summer with a European company to deliver gasoline to Cuba to circumvent U.S. sanctions imposed against Cubametales.

OFAC’s regulations generally prohibit all transactions by U.S. persons and companies that involve any property or interests in property of blocked persons and entities.

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Chris Gillis

Located in the Washington, D.C. area, Chris Gillis primarily reports on regulatory and legislative topics that impact cross-border trade. He joined American Shipper in 1994, shortly after graduating from Mount St. Mary’s College in Emmitsburg, Md., with a degree in international business and economics.