Jeremy Paner Analyzes Realities for International Companies Exploring Business in Venezuela

Jeremy Paner discussed the realities for international companies exploring business opportunities in Venezuela with Law.com International.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued a series of general licenses allowing established U.S. entities to transact with state-owned oil and gas company Petróleos de Venezuela (PDVSA).

However, according to Paner, international companies should proceed with caution before pursuing opportunities in the South American country.

“There is interest, but the reality of doing business in Venezuela hits hard pretty quickly,” Paner said.

Paner noted that these realities include deeply entrenched corruption and questionable legal guarantees, and while some transactions with PDVSA are possible, the Venezuelan government itself remains a sanctioned entity.

“Wherever there’s business, there’s the government of Venezuela,” Paner said. “A broker will step in and say you need to go through me to get to the government, pay a fee.”

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