New Sanctions on Oil Trade Imposed Due to Growing Tensions Between US-Venezuela

Due to the growing tensions between US-Venezuela, new sanctions have been imposed on the trade of oil because of the immense pressure escalated on trade with Venezuela by sanction regulators of the US. The infamous South American country was found attempting to send oil to Cuba and Iran which seemed to spark a huge wildfire amongst the US Sanction Regulators.

Immediately thereafter OFAC, an influential authority within the US Department of the Treasury, came in action and as an immediate step included four companies owned by registered owners and their different crude oil cargo ships into the list of sanctioned entities. A spokesperson of OFAC was reported to state that irrespective of the economic sanctions duly imposed by the US in the year 2017, four vessels had been found to export oil from the ports of Venezuela.

OFAC recorded his statement by categorically stating that strict actions will be carried out against the Government of Venezuela which is run by an illegitimate President, Nicolas Maduro, who cannot conduct such activities in any circumstances, and those who are trying to facilitate the President will face consequences which may entail stoppage of access to US financial system.

Steven Mnuchin who is the Secretary, Treasury of the States, while speaking to the press stated that Maduro’s regime is involved in activities at the cost of exploiting the country’s natural resources for their own benefits.

In the start of 2019, Venezuela’s oil sector has been subject to strict scrutiny by the US Government which resulted in the Regulator to arrive at a decision to impose “intensity pressure” in the form of imposing further sanctions in an attempt to stop the companies which were otherwise aiding the Venezuelan President to siphon off the misappropriated money.

Since then, several government officials, vessels, and financial institutions have also been added to OFAC’s list – generally in response to exports of crude oil to Cuba, which are also subject to US restrictions.

Tensions are further creping in which has sent a threatening message to even those countries who were receiving oil from Venezuela.