U.S. adds sanctions on Venezuela after disputed election
WASHINGTON >> The Trump administration on Monday barred Americans from a risky but potentially lucrative type of financial transaction with Venezuela’s state-owned companies as it condemned the reelection of President Nicolás Maduro as a sham.
An executive order signed by President Donald Trump aims to further squeeze Maduro’s government by preventing corrupt officials from enriching themselves by selling off state assets at fire sale prices, administra- tion officials said.
The order prohibits U.S. companies and individuals from purchasing Venezue- la’s debt and money owed to government-owned businesses, often for pennies on the dollar.
A U.S. official said the measures close a set of loopholes, especially those involving accounts receivables. The official said some Venezuelans connected to the government were selling off accounts potentially worth large sums of money in the future for paltry amounts paid today.
“As the economy has plummeted, regime elites are seeing fewer and fewer opportunities to enrich themselves,” said the official, speaking on the condition of anonymity under White House rules. “We now are seeing, literally, smash and grab type of behavior by the regime. Anything that isn’t bolted down, they’re looking to sell off.”
This is the latest in a series of economic measures the administration has imposed against Venezuela, an oil-rich country whose economy has collapsed amid a harsh crackdown on government opponents. An estimated 1.5 million Venezuelans have fled the country, many to neighboring Colombia and Brazil.
The new prohibition came one day after Maduro won a second six-year term in an election marked by low voter turnout, allegations the vote was rigged and a boycott called by the opposition. U.S. officials declined to say whether they intend to impose more sanctions against Venezuela. But Secretary of State Mike Pompeo assured Venezuelans that the United States “will take swift economic and diplomatic actions to support the restoration of their democracy.”
Following the election, which Maduro easily won, a group of 17 nations in the region known as the Lima Group issued a condemnation, saying they would not recognize the vote.
The nations — including Brazil, Argentina, Panama and Canada — said they would move to reduce diplomatic relations. They also said they would work with financial institutions in their countries “to try not to grant” loans to the Venezuelan government.