But the significant petroleum trade between the nations prompted the administration not to go there. Sharelines US calibrated sanctions to tighten the economic screws on Venezuela regime.
But the significant petroleum trade between the nations prompted the administration not to go there. Sharelines US calibrated sanctions to tighten the economic screws on Venezuela regime. Democratic nations around the world have declared they will not recognize the Constituent Assembly as legitimate.
Due to this significant petroleum trade between the nations, the US stopped short of imposing a full crude oil embargo, which would surely be crippling for the Venezuelan nation, nor do the sanctions apply to short-term financing for oil sales.
OFAC also issued four general licenses to allow for certain exemptions to protect the interests of both US companies and the Venezuelan people. The sanctions prevent American entities from buying any new debt issued by Venezuela with maturities longer than 30 days, or 90 days for the debt of PdVSA.
While Citgo is protected from the sanctions through General License 2, it will be prohibited from distributing profits back to the PdVSA and the Venezuelan government. Maduro and his vice president, Tareck El Aissami, invited bondholders to a meeting in Caracas on November 13 as Venezuela prepares to restructure its overwhelming debt.
The Lima Group has met three times during the fall ofand continues to reiterate their rejection of the Venezuelan government and its ongoing human rights abuses. Their next meeting is planned to be held in Chile in January On November 13, the European Union also announced that it approved new economic sanctions on Venezuela, including a full arms embargo.
The sanctions program will allow for a system of asset freezes and travel bans to be put into place against key Venezuelan government officials. Key Takeaways The US has shown Venezuela and the Maduro regime that it will not sit idly by while the Venezuelan people suffer through political repression along with one of the worst economic collapses in modern Latin American history.
Through its OFAC sanctions program and updated SDN List, the US has made it increasingly difficult for the Maduro regime to prosper, and will continue to do so until Venezuela reestablishes sustainable democratic processes and holds free and fair elections.
Even if Venezuela seeks to get around the US sanctions by restructuring outstanding bonds in other currencies, authority for that would come from the Constituent Assembly, which the EU, the US and Lima Group member-states do not recognize as legitimate.
This will likely push the Maduro regime to seek financial assistance from Russia and China, who both recently boycotted a UN Security Council meeting on Venezuela. Due diligence will remain critical for compliance practitioners who deal with clients engaging in the region, particularly as the list of sanctioned government officials and government-owned entities grows.
With more than 25 years of experience in import and export compliance, foreign investment and global expansion, she advises both US and foreign-based companies on international business matters.
Julius Bodie also contributed to this article.Grappling with a ramshackle energy infrastructure and international sanctions, North Koreans have kept their country from chugging to a standstill (Andrew Salmon). Jun 25, · A Democratic congressman and a former Canadian diplomat are calling on nations to respond to President Donald Trump’s tariffs on international trade by sanctioning Trump-owned businesses.
Rep. U.S. and international sanctions have battered the Iranian economy and brought Tehran to negotiate over its nuclear program. Lifting them is central to a deal but will be a complex process. New economic data shows North Korea buying more and selling less to its biggest trade partner, China — and it likely indicates that a US-led wave of sanctions .
Despite China’s professed opposition to unilateral sanctions, however, it has not hesitated to punish countries through trade if they refuse to do Beijing’s bidding.
Economic sanctions are commercial and financial penalties applied by one or more countries against a targeted country, group, or individual. Economic sanctions may include various forms of trade barriers, tariffs, and restrictions on financial transactions.
An embargo is similar, but usually implies a more severe sanction. Economic sanctions .