Nynas exits US sanctions
OFAC announced on 12 May that Nynas is no longer being blocked pursuant to the Venezuela Sanctions Regulations.
Image for illustration purposes
Sweden: The US Treasury Department’s Office of Foreign Asset Control (OFAC) announced on 12 May that Nynas is no longer being blocked pursuant to the Venezuela Sanctions Regulations.
As a result of a corporate restructuring of the ownership of Nynas AB, sanctions are lifted, and US persons and companies no longer require an authorization from OFAC to engage in transactions or activities with Nynas AB. As a consequence, general license GL 13E is removed.
“This means an end to many years of having to carry the unfair burden for a Swedish company of being subject to US sanctions. This led to an increasingly deteriorating financial situation, which ultimately forced Nynas into reorganisation at the end of the last year”, says Nynas President Bo Askvik. “Our focus now is to successfully end the ongoing reorganisation process, and having exited sanctions, Nynas will be able to return to normal trading conditions and secure long-term financing.”
Since 13 December 2019, Nynas has made good progress with the reorganisation process. The removal of the US sanctions impacting Nynas was made possible by the reduction in the ownership share and control of the company by PDVSA, the Venezuelan state-owned oil company. With the now confirmed statement regarding sanctions relief from OFAC, both Nynas and the administrators believe that the basis exists for finalizing the reorganisation successfully.
As Nynas now is out of sanctions, financing is available to secure necessary crude oil purchases going forward.
Source: Nynas