Stockholm - The US Treasury Department’s Office of Foreign Asset Control (OFAC) has lifted sanctions on Nynas AB, following a corporate restructuring of the company’s ownership.
The OFAC decision was made as Nynas' Venezuelan shareholder, PDVSA significantly reduced its 50% ownership in the Swedish process oils manufacturer.
In a 12 May announcement, Nynas said that Venezuelan state-owned oil company now holds 15% of all shares currently issued.
The 35% divested shares are controlled by an independent Swedish foundation, which Nynas said, is “under no influence by PDVSA” and has been established to enable a reduction in PDVSA's ownership interest.
The Nynas board of directors will have in total nine directors, including one director representing PDVSA, two employee representatives and an independent chairman.
“This means an end to many years of having to carry the unfair burden for a Swedish company of being subject to US sanctions,” said Nynas president Bo Askvik in a 12 May statement.
Having exited sanctions, Nynas said it will be able to return to normal trading conditions and secure long-term financing make necessary crude oil purchases.
The sanctions, according to the company official, led to financial woes that ultimately forced the company into reorganisation at the end of last year.
“Our focus now is to successfully end the ongoing reorganisation process," said Askvik.