Nifty99000 100%

Sensex99000 100%

Article rating: 5.0
Tags:
Article rating: 4.3
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: No rating
Tags:
Article rating: 4.1
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: No rating
Tags:
Article rating: No rating
Tags:
Article rating: 2.0
Tags:
Article rating: 5.0
Tags:
RSS

News

US slaps sanctions on Venezuela’s state-owned oil company

Author: PTI/Wednesday, January 30, 2019/Categories: Oil & Gas

US slaps sanctions on Venezuela’s state-owned oil company

Washington - The US has slapped sanctions on Venezuela's state-owned oil company that would potentially cost the country USD 11 billion in revenues, a move that seeks to force President Nicolas Maduro to give up power after the opposition leader Juan Guaido declared himself interim president.

The sanctions on January 28 prohibit most American businesses from engaging in transactions with the oil company, Petroleos de Venezuela, SA, or PDVSA.

The Trump administration officials said the financial penalties are expected to block USD 7 billion in assets and result in USD 11 billion in export losses over the next year for Venezuela's government, starving it from its most important source of revenue and foreign currency.

Last week, the Trump administration recognised Guaido, the 35-year-old leader of the National Assembly, as his supporters took to the streets to demand new elections. Maduro has cut ties to the United States and has demanded that all American diplomats leave the country.

US National Security Advisor John Bolton at a joint news conference with Treasury Secretary Steven Mnuchin said Maduro and his allies could "no longer loot the assets of the Venezuelan people".

He called on the Venezuelan military and security forces to accept the peaceful democratic and constitutional transfer of power.  

Mnuchin said the US is holding accountable those responsible for Venezuela's tragic decline.

"We will continue to use all of our diplomatic and economic tools to support interim President Guaido, the national assembly, and the Venezuelan people's efforts to restore their democracy," he said.

Observing that PDVSA has long been a vehicle for embezzlement, for corruption for Venezuelan officials and businessmen, he said the designation of PDVSA will help prevent further diversion of Venezuela's assets by Maduro and will preserve these assets for the people of Venezuela where they belong.

"The path to sanctions relief for PDVSA is through the expeditious transfer of control to the interim president or a subsequent democratically elected government who is committed to taking concrete and meaningful actions to combat corruption," he said.

Venezuela has the largest amount of proven oil reserves in the world, and oil revenues account for about 98 per cent of the country's export earnings, according to the Organization of the Petroleum Exporting Countries (OPEC).

It is heavily reliant on the US for its oil revenue - sending 41 per cent of its oil exports there - while it remains in the top four crude oil suppliers to the US.

Maduro later announced he had told PDVSA to launch "political and legal action, in US and international courts" to protect its US subsidiary Citgo.

Meanwhile, Bolton's note on "5,000 troops to Colombia" as reflected in his notepad during the White House press conference raised question if the Trump administration is considering dispatching troops to the South American country.            

Later a White House spokesperson said that all options are on the table.

Responding to questions, Bolton said, "The president has made it very clear on this--on this matter that all options are on the table."

Asserting that stability and democracy in Venezuela are in the national interest of the US right, Bolton said under the Chavez-Maduro governments, civil society in Venezuela is disintegrating and the economy is in a state of collapse.      

In a separate statement, Secretary of State Mike Pompeo alleged that Maduro and his cronies have used state-owned PDVSA to control, manipulate, and steal from the Venezuelan people for too long, destroying it in the process.

"Today's action will prevent Maduro and other corrupt actors from further enriching themselves at the expense of the long-suffering Venezuelan people.  It will also preserve the core pillar of Venezuela's national assets for the people and a democratically elected government,” he said.

Pompeo said these new sanctions do not target the innocent people of Venezuela and will not prohibit humanitarian assistance including the provision of medicine and medical devices, which are desperately needed after years of economic destruction under Maduro's rule.

"The United States will continue to take concrete and forceful action against those who oppose the peaceful restoration of democracy in Venezuela, and serve their own interests rather than those of the Venezuelan people," Pompeo said.

Print Rate this article:
No rating

Number of views (192)/Comments (0)

rajyashree guha

PTI

Other posts by PTI
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free