White House slaps new sanctions on Venezuela
WASHINGTON — The Trump administration hit Venezuela with economic sanctions Thursday to block its exports of gold, a lifeline commodity for the embattled leftist government of President Nicolas Maduro, but put off targeting its oil exports, the mainstay of its economy.
President Donald Trump’s national security adviser, John Bolton, announced the sanctions as he outlined a Latin America strategy that seeks to isolate and punish leftist governments in Venezuela, Cuba and Nicaragua while embracing right-wing leaders in Colombia, Chile and soon Brazil.
Branding the three left is truled countries as a “troika of tyranny,” Bolton sought to emphasize the “destructive” influence that Cuba plays in Venezuela and, to a lesser extent, in Nicaragua. Cuban military, intelligence and medical personnel have been operating for years in Venezuela to shore up Maduro and, before him, the late Hugo Chavez.
Bolton also praised the president-elect of Brazil, Jair Bolsonaro, as a “like-minded” partner, citing his recent electoral victory as one of several “positive signs” for the region. A former military officer who praises far-right dictatorships, Bolsonaro is perhaps best known for insulting comments he has made about women, gays and people of color.
On Monday, Trump had tweeted that he had a “very good conversation” with Bolsonaro. “We agreed that Brazil and the United States will work closely together on Trade, Military and everything else! Excellent call, wished him congrats!
A senior administration official said Thursday that the White House is confident that Brazil’s “strong institutions” will preserve order in the hemisphere’s second-largest democracy. The official, who spoke on condition of anonymity to discuss internal deliberations, said Trump and Bolsonaro share a dedication to free markets and other priorities.
The penalties against Venezuela were in an executive order signed by Trump and released Thursday. They target specific economic sectors, including sanctions aimed at the “illicit” exploitation of gold. Venezuela exported $900 million worth of gold in the first nine months of this year through Turkey in anticipation of U.S. restrictions.
The new sanctions will deny the Maduro government “access to stolen wealth” that it uses “as a bastion to finance illicit activities, to fill its coffers, and to support criminal groups,” Bolton said.
Administration officials said Trump’s order could lead to sanctions on Venezuela’s oil industry, an action that would reverberate throughout the Americas. U.S. officials worry that interfering with the oil industry could cause prices at U.S. gas pumps to soar and hurt U.S. refineries that process Venezuelan crude. In addition, several Caribbean allies rely heavily on cheap Venezuelan oil.
Venezuela is reeling from economic and political turmoil, with food and medicine scarcities that have sent nearly 2 million residents fleeing to neighboring countries and further abroad — creating a refugee crisis on par with Syria but in a much shorter period.
The Trump administration previously blacklisted 70 Venezuelan individuals and entities, including Maduro and his wife, barring them from traveling to the United States or doing business with Americans or American companies.