STOCKHOLM, SWEDEN - Sweden-based transformer oil manufacturer Nynas AB announced the company applied for an extension of its reorganization for another three months to be able to implement the measures and actions required to meet demands of the US Treasury Department's Office of Foreign Asset Control (OFAC) and have the U.S. sanctions lifted.

The company which is in the ownership by Finland's Neste Oil and Venezuelan PDVSA filed for company reorganization on December 13, 2019, and a key element for a successful reorganization is to take Nynas out of the impact of U.S. sanctions which requires the majority owner PDVSA to reduce its ownership interest in the company.

Nynas shareholders have agreed on changes in the ownership structure which have been presented to OFAC, and which OFAC accepted as satisfactory.

OFAC also stated that when the proposal is executed, OFAC is ready to swiftly initiate its internal process for the removal of sanctions applicable to Nynas and prepare an appropriate public statement to that effect.

Nynas estimates that it will take a few weeks to implement the measures and actions required to satisfy OFAC's demands.

Source: Nynas