US Plans to Unveil New Round of Sanctions on Venezuela, Sources Say

by Frankie Norman August 26, 2017, 1:19
US Plans to Unveil New Round of Sanctions on Venezuela, Sources Say

President Donald Trump on Friday hit Venezuela with stiff new sanctions that attempt to cut off the dictatorial regime from the us financial system, but the penalties spare the increasingly chaotic country's most important source of foreign revenue - oil.

The Trump administration banned trades of Venezuelan debt, prohibiting Maduro's government and its state-run oil company, PetrĂ³leos de Venezuela SA, from selling new bonds to Americans or in USA financial institutions.

Venezuelan Foreign Affairs Minister Jorge Arreaza said on Friday that his country was considering measures to shield itself against USA economic sanctions.

Last week, Venezuela's constituent assembly gave itself the power to pass laws, seizing legislative power from the opposition-led congress.

During a recent visit to Colombia, Vice President Mike Pence said, "we will not stand by while Venezuela collapses into dictatorship".

"Venezuela is not very far away, and the people are suffering and they're dying", Trump said.

The sanctions would bar dealings in new bonds and stocks issued by the government and state oil company.

Most existing Venezuelan debt traded in the USA was issued by PDVSA. However, it will issue licenses allowing for a 30-day wind down period, financing for most commercial trade - including petroleum transactions involving Citgo - dealings in select existing Venezuelan debts and funding for humanitarian efforts.

Trump signs executive order imposing new Venezuela sanctions from CNBC.

"We have many options for Venezuela". White House press secretary Sarah Huckabee Sanders, when asked a few minutes later to elaborate, said, "We leave all options on the table and we're not taking any of those things off". They occasionally shouted "freedom, freedom" and cheered every time the vice president spoke of President Donald Trump's interest in Venezuela, a socialist nation that has been undergoing an economic crisis.

Reflecting a strong lobby effort by the US oil industry, Friday's action stopped short of cutting off USA imports of Venezuelan oil that are crucial both to Venezuela's economy and to USA refiners.

For the ambassador, the Venezuelan government is doing everything to find a peaceful solution through dialogue that some sectors of the opposition try to sabotage, with the aim of destabilizing the country, with foreign aid.

"The economic measures the U.S. government is preparing will worsen Venezuela's economic situation", he told foreign journalists on Tuesday, vowing to protect the population from the worst effects of any sanctions.

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