US puts squeeze on Maduro with ‘aggressive’ sanctions

THE United States imposed sweeping financial sanctions on Venezuela last night, ramping up tensions between the countries and increasing pressure on Nicolas Maduro, the Venezuelan president.

Donald Trump signed an executive order banning US financial institutions from providing new money to the Venezuelan government or the state oil company PDVSA.

The order marked a significant escalation in recent sanctions against Mr Maduro and senior officials in his government. Under the sanctions Citgo, the US subsidiary of PDVSA, will be prevented from sending dividends to Venezuela. Trading will also be banned in bonds recently issued so Venezuela could get around its increasing isola- tion from western financial markets.

A White House spokesman said: “These measures are carefully calibrated to deny the Maduro dictatorship a critical source of financing to maintain its illegitimate rule, protect the US financial system from complicity in Venezuela’s corruption and the impoverishment of the Venezuelan people, and allow for humanitarian assistance.”

A senior Trump administration official said the sanctions were an attempt to make Mr Maduro roll back plans to rewrite the constitution, free dozens of political prisoners, and hold fair and transparent elections.

Jorge Arreaza, Venezuela’s foreign minister, said it was the “worst aggression” yet against his country and added: “We don’t understand it.”