Donald Trump launches new financial sanctions against the 'dictatorship in Venezuela' by executive order
Donald Trump has signed an executive order “imposing strong, new financial sanctions on the dictatorship in Venezuela,” according to the White House.
“The Maduro dictatorship continues to deprive the Venezuelan people of food and medicine, imprison the democratically-elected opposition, and violently suppress freedom of speech”, the White House said in a statement.
The sweeping financial sanctions are aimed at restricting the Maduro regime's ability to finance its “unconstitutional” and “undemocratic behaviour,” according to a senior administration official.
“We will not allow the United States’ financial system to participate in the underwriting of the Maduro dictatorship” amid “a wholesale looting of the Venezuelan economy and the violent oppression of the Venezuelan people,” a senior administration official said. “We’re closing off his access to the markets for the financing he’s been using to prop up his regime and to fund the security apparatus that is repressing the Venezuelan people.”
The sanctions are bound to dramatically escalate tensions between Venezuela and Washington and exacerbate the South American country's economic crisis.
The White House said the sanctions “are carefully calibrated to deny the Maduro dictatorship a critical source of financing to maintain its illegitimate rule, protect the United States financial system from complicity in Venezuela's corruption and in the impoverishment of the Venezuelan people, and allow for humanitarian assistance”.
“Maduro’s economic mismanagement and rampant plundering of his nation’s assets have taken Venezuela ever closer to default,” it added. “His officials are now resorting to opaque financing schemes and liquidating the country’s assets at fire sale prices.”
A senior administration official said the goal of the US is to see the Venezuelan government restore its democracy by having free and fair elections, respecting the constitution, and releasing political prisoners. If Mr Maduro's regime does not comply, the US has “more room” to escalate sanctions, the official said.
Under the new measures, institutions in the US will be prohibited from trading new bonds with Mr Maduro’s government, including through the state-owned oil company, Petróleos de Venezuela SA (PdVSA).