U.S. Imposes Sanctions on Venezuelan Oil Sector
The U.S. Treasury Department announced on Wednesday that it has sanctioned four companies linked to Venezuela’s oil industry and designated four oil tankers as blocked property. This decision aims to target oil traders allegedly involved in evading sanctions to support President Nicolas Maduro’s government.
According to a press release, some of these vessels are reportedly part of a “shadow fleet” supporting Venezuela, essentially providing funding for what the Treasury describes as Maduro’s “illicit narco-terrorism regime.”
Treasury Secretary Scott Bessent emphasized, “President Trump has made it clear: We will not allow the illegitimate Maduro regime to flood the United States with deadly drugs while profiting from oil exports.” Bessent further stated that the Treasury plans to continue its pressure campaign against Maduro’s administration.
These new sanctions block the property and interests of the targeted entities within U.S. jurisdiction, effectively prohibiting Americans from engaging in business with them.
Venezuela’s Response to U.S. Actions
Venezuela has accused the U.S. of “piracy” following actions against its state oil company, Petroleos de Venezuela SA (PDVSA). In January 2019, OFAC took steps to designate PDVSA under Executive Order 13850, with further restrictions imposed in August 2019 through Executive Order 13884.
The Treasury Department noted that these recent measures complement those announced in December for officials and vessels tied to PDVSA.
Details of the Sanctions
Among the sanctioned entities are Corniola Limited and Krape Myrtle Co LTD, with the tanker NORD STAR identified as seized property. Winky International Limited’s asset, ROSALIND (also called LUNAR TIDE), has also been blocked. Aries Global Investments LTD was designated, with tankers DELLA and VALIANT classified under the same seized status.
The Treasury clarified that any property seized within U.S. jurisdiction must be reported to OFAC. Violations of these sanctions could lead to civil or criminal penalties.
The overarching goal of these sanctions, as stated by the Treasury Department, is to encourage positive behavioral changes from the Maduro regime. There is a formal process for entities to request removal from the OFAC list under U.S. law.
