Left Menu
Development News Edition

US hits Venezuela state-owned oil company with sanctions


US hits Venezuela state-owned oil company with sanctions

Washington, Jan 29 (AP) The Trump administration imposed sanctions Monday on the state-owned oil company of Venezuela, a potentially critical economic move aimed at increasing pressure on President Nicolas Maduro to cede power to the opposition. National security adviser John Bolton and Treasury Secretary Steven Mnuchin announced the measures against the company.

They are also aimed at boosting Maduro's rival, opposition leader Juan Guaido, whom the administration recognized last week as Venezuela's legitimate leader. The sanctions will include a freeze on any assets the firm may have in US jurisdictions and bar Americans from doing business with it.

"The United States is holding accountable those responsible for Venezuela's tragic decline, and will continue to use the full suite of its diplomatic and economic tools to support Interim President Juan Guaido, the National Assembly, and the Venezuelan people's efforts to restore their democracy," Mnuchin said. "Today's designation of PDVSA will help prevent further diverting of Venezuela's assets by Maduro and preserve these assets for the people of Venezuela. The path to sanctions relief for PDVSA is through the expeditious transfer of control to the Interim President or a subsequent, democratically elected government," he said.

PDSVA is the acronym for the state-owned oil company. Senator Marco Rubio, a vocal critic of Maduro who has called for such sanctions, welcomed the move even before it was announced.

"The Maduro crime family has used PDVSA to buy and keep the support of many military leaders," Rubio said. "The oil belongs to the Venezuelan people, and therefore the money PDVSA earns from its export will now be returned to the people through their legitimate constitutional government."

The sanctions will not likely affect consumer prices at the gas pump but will hit oil refiners, particularly those on the US Gulf Coast. Venezuelan oil exports to the US have declined steadily over the years, falling particularly sharply over the past decade as its production plummeted amid its long economic and political crisis.

The US imported less than 500,000 barrels a day of Venezuelan crude and petroleum products in 2017, down from more than 1.2 million barrels a day in 2008, according to the Energy Information Administration. Still, Venezuela has consistently been the third- or fourth-largest supplier of crude oil to the United States, and any disruption of imports could be costly for refiners.

In 2017, the most recent year that data were available, Venezuela accounted for about 6 per cent of US crude imports. Valero and Citgo are among the largest importers of Venezuelan crude.

But Venezuela is very reliant on the US for its oil revenue. The country sends 41 per cent of its oil exports to the US. Critically, US refiners are among the few customers that pay cash to Venezuela for its oil. That's because Venezuela's oil shipments to China and Russia are usually taken as repayment for billions of dollars in debts. (AP) RCJ

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION/BLOG/INTERVIEW

Hyderabad Encounter: Time to review modern judiciary and restore people’s confidence

Its probably for the first time in the history of independent India, the parliamentarians, chief ministers and ministers in the Union and State governments are openly supporting an encounter. This indicates the people from top to bottom hav...

What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

How to avoid fake universities and fishing bait like Farmington

As education sharks are roaming around to prey, we present a guide on how to mitigate hunters and reach to a genuine universityinstitute. In this era of commercialization of education, the fake universities and economic frauds in educationa...

Videos

Latest News

Fears for miners trapped underground in SAfrica

Four miners trapped underground after a tremor caused a rockfall at a mine in northeast South Africa are feared to have been cut off from oxygen, their union said Saturday. A fifth miner was rescued with serious injuries after the accident ...

Night temp continue to drop in J-K, Ladakh; Drass coldest at minus 25.4 deg C

The night temperature continued to trend downward in Union Territories of Jammu and Kashmir, and Ladakh as Drass remained the coldest place in the region recording minus 25.4 degrees Celsius, a Meteorological Department official said on Sat...

US resumes talks with Taliban in Doha: US source

Washington resumed talks with the Taliban in Qatar Saturday, a US source said, three months after President Donald Trump abruptly halted diplomatic efforts that could end Americas longest war. In September, the United States and the Taliban...

Soccer-Qatar's Education City Stadium not to host Club World Cup games - FIFA

Qatars Education City Stadium will not host matches during the FIFA Club World Cup this month after the official opening of the venue was postponed until early 2020, soccers world governing body said in a statement on Saturday.FIFA said the...

Give Feedback