The Daily Journal.— The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) authorized on August 21, 2026, the negotiation and execution of contingent contracts aimed at bringing new investment into Venezuela’s telecommunications sector.
The measure explicitly allows Venezuelan state entities, particularly the National Telecommunications Commission (CONATEL) and Compañía Anónima Nacional Teléfonos de Venezuela (CANTV), to enter into these types of agreements to develop infrastructure and services.
Through General License No. 62, OFAC opens the door to establishing new telecommunications service providers, expanding existing operations and creating new joint ventures in the South American country.
To advance these partnerships, the document allows the parties to sign binding memoranda of understanding, preliminary contracts and formal bids for public tenders, as well as conduct all necessary commercial, legal, technical, security and environmental due diligence reviews and audits.
Contingency requirement and scope of services
Despite easing restrictions on negotiating and signing commercial documents, OFAC imposes a key limitation: the parties may not carry out any of these contracts unless they obtain separate, subsequent authorization from the U.S. agency.
The operations eligible for future investment cover a wide range of services, including internet connectivity, telephone services, data transmission, radio, television and news agency transmissions, regardless of whether providers use satellites or submarine cables to deliver them.
Restrictions remain in place
The regulations maintain strict prohibitions regarding the origin of capital and potential strategic partners. The general license does not authorize transactions with individuals or entities located, incorporated, or controlled in the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, or the People’s Republic of China.
The measure also makes clear that it does not authorize, under any circumstances, the release of property or assets that authorities previously blocked under the Venezuela sanctions regulations.
