Designations
On Friday, October 24, 2025, the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) added Gustavo Francisco Petro Urrego (“Petro”), the President of Colombia, along with his wife, eldest son, and a close associate, to its list of Specially Designated Nationals and Blocked Persons.
- OFAC designated Petro under E.O. 14059 for having engaged in, or attempting to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production.
- E.O. 14059 was issued on December 15, 2021 to enhance Treasury’s “authorities to target any foreign person engaged in drug trafficking activities, regardless of whether they are linked to a specific kingpin or cartel.”
- Announcing Petro’s designation, Secretary of the Treasury Scott Bessent explained that, since Petro came to power, “cocaine production in Columbia has exploded to the highest rate in decades, flooding the United States and poisoning Americans.” Secretary Bessent said that Petro “has allowed drug cartels to flourish and refused to stop this activity.”
- OFAC designated Petro’s wife, son, and close associate pursuant to the same E.O. for having provided, or attempted to provide, financial, material, or technological support for, or goods or services in support of, Petro.
Sanctions Implications
- As a result of these designations, all property and interests in property of the designated individuals that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. Pursuant to OFAC’s 50% Rule, any entities owned 50% or more, directly or indirectly, individually or in the aggregate, by the designated individuals are also blocked.
- Unless authorized by OFAC or exempt, U.S. persons are prohibited from engaging in transactions involving the designated individuals or any of their respective property or interests in property.
- Even absent a U.S. nexus, foreign persons that continue to do business with, or involving, the designated individuals risk being designated themselves pursuant to E.O. 14059 for having “provided, or attempted to provide, financial, material, or technological support for, or goods or services in support of” a person blocked pursuant to that E.O.
Context
These designations come amidst escalating tensions between the United States and Colombia. The Administration’s statements have tended to focus on Petro’s failures, while emphasizing general support for Colombia’s broader security institutions and authorities.
- President Trump has called Colombia a “a drug manufacturing machine” and criticized Petro, for doing “nothing to stop it.” Petro, meanwhile, has taken issue with U.S. strikes on vessels in the Caribbean, and accused the United States of killing a Colombian fisherman.
- The Administration has taken steps to pave the way for withholding U.S. assistance to Colombia, including:
- On Friday, U.S. Secretary of State Marco Rubio declined to certify Colombia under the criteria of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2024, as carried forward by the Full-Year Continuing Appropriations Act, 2025, citing Colombia’s ineffective narcotics policies. Secretary Rubio explained: “We remain steadfast in our support for Colombian security forces, its justice sector, and departmental and municipal officials, and we will continue to partner with them in our joint efforts to combat drug trafficking. Today’s decision is not a reflection on these institutions but rather the failures and incompetence of Gustavo Petro and his inner circle.”
- On September 15, 2025, President Trump determined that Colombia “failed demonstrably” to meet its international counternarcotics obligations as “a major drug transit or major illicit drug producing country,” under the Foreign Assistance Act of 1961, as amended. The statement announcing this determination notes that: “In Colombia, coca cultivation and cocaine production have surged to all-time records under President Gustavo Petro, and his failed attempts to seek accommodations with narco-terrorist groups only exacerbated the crisis. . . . Colombia’s security institutions and municipal authorities continue to show skill and courage in confronting terrorist and criminal groups, and the United States values the service and sacrifice of their dedicated public servants across all levels of government. The failure of Colombia to meet its drug control obligations over the past year rests solely with its political leadership.”
- President Trump has also posted that that United States will stop payments and subsidies to Colombia, noting Petro’s failure to address the country’s illicit drug business.
- Last weekend, President Trump stated that the United States will enact tariffs on Colombia, citing Petro’s alleged refusal to address Colombia’s role in the illicit drug trade, though the Administration has not yet issued a formal announcement of any such tariff measures.
In light of the designations and the continuing escalation of U.S.-Colombia tensions, parties would be well-advised to assess their potential exposure to the designated individuals and other potential targets in anticipation of the possibility of additional restrictive economic measures, and should closely monitor developments in this area.