Washington, August 26: The Trump administration keeping up the promise of punishing Venezuelan President Nicolas Maduro, has slapped strong financial sanctions on Venezuela, barring banks from any new deals with the government.
Notably, the sanctions which US President Donald Trump signed by executive order on Friday prohibit American financial institutions from providing new money to the government or the state oil company, PDVSA, and could make it harder for embattled Venezuelan President Nicolas Maduro to raise badly needed cash to prevent a debt default.
US has also restricted the Venezuelan oil giant's US subsidiary, Citgo, from sending dividends back to Venezuela and ban trading in two bonds the government recently issued to circumvent its increasing isolation from Western financial markets.
White House Press Secretary Sarah Sanders said, "Maduro may no longer take advantage of the American financial system to facilitate the wholesale looting of the Venezuelan economy at the expense of the Venezuelan people." “The President's new action prohibits dealings in new debt and equity issued by the Venezuelan government and its state oil company,” Sarah Sanders added.
Earlier, the Treasury Department of United States designated the President of Venezuela, Nicolas Maduro Moros and banned him from the United States and prohibited Americans from doing any business with him. The sanctions were announced in a statement by US Treasury Secretary Steven Mnuchin. Under the sanctions, US firms and individuals are banned from doing business with Maduro. he Trump administration also termed Venezuelan President Nicolas Maduro with the name of ‘Dictator’.
Nicolas Maduro was elected President of Venezuela on April 14, 2013, following the death of former President Hugo Chavez. Maduro held previous roles in the Venezuelan government, including as Executive Vice President and Minister of Foreign Affairs.
Under Maduro, the Venezuelan government has deliberately and repeatedly abused the rights of citizens through the use of violence, repression, and criminalization of demonstrations. At his direction, the regime's security forces have systematically repressed and criminalized opposition parties through arbitrary detention, military prosecution of civilians, and the excessive use of force against demonstrators. Any member of the opposition or critic of the regime risks being detained, imprisoned, assaulted, tortured, and assassinated.
In addition to committing widespread human rights abuses, Maduro's regime has mismanaged the economy and engaged in systemic corruption. Despite having among the world's largest oil reserves, tens of millions of Venezuelans are going hungry because the Government refuses to import sufficient food for the Venezuelan people, engages in rampant corruption around currency and the exchange rate regime, and rejects offers of humanitarian aid.
Treasury undertook the action, in consultation with the State Department, pursuant to Executive Order 13692. The U.S. government and democratic governments worldwide continue to call on the Venezuelan government to halt the ANC process and allow Venezuela's democratic processes and institutions to function as intended. We urge those who were elected to the Constituent Assembly to decline to take office.