US heaps pressure on Maduro with new oil sanctions
The United States has approved sanctions against Venezuela's state-owned oil firm PDVSA as it ramps up efforts to force President Nicolás Maduro into relinquishing power of the South American nation.
Treasury Secretary Steven Mnuchin said the proceeds of the purchase of Venezuelan oil would now be withheld from Mr Maduro's government, but added that sanctions could be avoided by the country's government recognising opposition leader Juan Guaidó as interim president, as the US and 20 other nations have already done.
The sanctions are likely to have a sizeable impact as 41% of Venezuelan oil exports are sent to the US, making the country one of the top four crude oil suppliers to the States.
US National Security Adviser John Bolton said the move blocks about $7bn in assets and would result in more than $11bn in lost assets over the next year.
While Maduro has indicated that he will fight the sanctions with "political and legal action, in US and international courts", Bolton said the measures ensure that Maduro's administration will "no longer loot the assets of the Venezuelan people".
Despite referring to PDVSA as "a vehicle for embezzlement, for corruption for Venezuelan officials and businessmen", Mnuchin indicated that US-based subsidiary Citgo could continue operations if the resulting earnings are deposited in a blocked US account.
Bolton also called on the Venezuelan military to "accept the peaceful, democratic and constitutional transfer of power," while holding a notepad on which the handwritten words "5,000 troops to Colombia" were clearly visible.
The hawkish Trump aide declined to rule out military intervention at the press conference, though a show of force would perhaps be unwise given that Russia, China, Mexico, Turkey, Cuba and a host of other nations have voiced support for Maduro,who came to power following the death of Hugo Chavez in 2013.
Maduro, who has become increasingly unpopular in his home country amid mass political demonstrations, hyperinflation and shortages of basic essentials such as food, water and medicine, faced an attempted coup less than two weeks ago.