WASHINGTON (dpa-AFX) - In the latest effort by the Trump administration to ramp up pressure on the authoritarian regime led by President Nicolas Maduro, the U.S. Treasury imposed sanctions on Venezuela's state-owned oil and natural gas company PDVSA.
The sanctions, pursuant to an Executive Order that President Donald Trump signed in November, bars Petroleos de Venezuela, S.A. (PDVSA) from selling oil to the United States.
This would choke the already shattered Venezuelan economy, as the impoverished Latin American country is heavily dependent on the U.S. for its oil revenue. Venezuela, which is one of the four major crude oil suppliers to the U.S., is sending 41 percent of its oil exports there.
Maduro pledged to retaliate against Washington's punitive action.
He said on state television Monday that he has instructed the head of PDVSA to launch political and legal action in U.S. and international courts to defend the property and assets of Citgo, PDVSA's US-based subsidiary.
However, announcing the sanctions, Treasury Secretary Steven Mnuchin said Citgo will be able to continue operations, as long as its earnings are deposited into a blocked account in the United States.
National Security Adviser John Bolton said the United States will not let Maduro and his cronies continue to loot the assets of the Venezuelan people.
'We continue to pursue all paths to disconnect the illegitimate Maduro regime from its sources of revenue and ensure that interim President Guaido and the Venezuelan people have the resources and support they need to bring democracy back to Venezuela,' he told reporters.
Secretary of State Michael Pompeo said the new sanctions will not prohibit humanitarian assistance including the provision of medicine and medical devices to the innocent people of Venezuela. The Department of the Treasury is issuing a series of general licenses to support U.S. companies, interests, and allies, he said in a statement.
This is the latest episode that worsens an already severed U.S.-Venezuela relationship.
Massive opposition-backed demonstrations against Maduro last week had culminated in the death of 14 people, and Opposition leader Juan Guaido declaring himself Venezuela's interim president.
Venezuela cut diplomatic ties with the U.S. and expelled its diplomats in retaliation to Washington recognizing Guaido.
More than 20 governments have pledged their support to Guaido.
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