US sanctions four shipping firms for transporting Venezuelan oil

Venezuelan foreign minister warned that US moves to inhibit crude exports would complicate food and medicine imports.

Men push a truck that run out of fuel as Venezuelans are struggling to cope with chronic fuel shortage, in Maracaibo, Venezuela, where US sanctions aimed at removing socialist President Nicolas Maduro have battered the economy [File: Isaac Urrutia/Reuters]

The United States Treasury Department on Tuesday said it had sanctioned four shipping firms for transporting Venezuelan oil, the latest escalation in Washington’s effort to depose socialist President Nicolas Maduro by cutting off the OPEC nation’s crude exports.

Marshall Islands-based Afranav Maritime Ltd, Adamant Maritime Ltd and Sanibel Shiptrade Ltd, as well as Greece-based Seacomber Ltd, all own tankers that lifted Venezuelan oil between February and April of this year, the Treasury Department said.

“These companies are transporting oil that was effectively stolen from the Venezuelan people,” Secretary of State Mike Pompeo said in a statement.

In response, Venezuelan Foreign Minister Jorge Arreaza said in a tweet that Pompeo had a “criminal obsession” with Venezuela and that the US moves to inhibit crude exports would complicate food and medicine imports.

Washington sanctioned Venezuelan state-run oil company Petroleos de Venezuela last January, shortly after the US and dozens of other countries declared Maduro a usurper who rigged his 2018 re-election.

But Maduro remains in power, which some US officials privately say has been a source of frustration for President Donald Trump.

“The illegitimate Maduro regime has enlisted the help of maritime companies and their vessels to continue the exploitation of Venezuela’s natural resources for the regime’s profit,” said Treasury Secretary Steven T Mnuchin in a statement. 

“The United States will continue to target those who support this corrupt regime and contribute to the suffering of the Venezuelan people,” Mnuchin added.

The Treasury statement also added that the removal of sanctions is available for individuals and entities who take actions “to restore democratic order, refuse to take part in human rights abuses, speak out against abuses committed by the illegitimate Maduro regime, cease involvement in the oil, gold, financial, or defense and security sectors of the Venezuelan economy, or combat corruption” in Venezuela.

“US sanctions need not be permanent; sanctions are intended to bring about a positive change of behavior,” the statement said.

Tuesday’s sanctions come after Washington in February and March sanctioned two units of Russia’s Rosneft, which became the main intermediary of Venezuelan crude in 2019. The units stopped lifting Venezuelan crude in March.

The FBI is also probing several Mexican and European companies that are allegedly involved in trading Venezuelan oil. One of those companies, Libre Abordo, said this week it was bankrupt.

Treasury also designated four tankers owned by the companies as blocked property. Those tankers had been used by Rosneft, Libre Abordo and a related Mexican firm – Schlager Business Group – to transport Venezuelan oil this year, according to PDVSA documents.

Source: Al Jazeera, News Agencies