Venezuela barred from selling debts
WASHINGTON: The Trump administration placed new sanctions on Venezuela on Monday, seeking to block President Nicolas Maduro from selling off government debt to enrich himself the day after he claimed victory in what the US government called a “sham” election in his crisisridden country.
President Donald Trump signed an executive order imposing the new penalties, which would bar US companies or citizens from buying debt or accounts receivable from the Venezuelan government, including Petroleos de Venezuela, the government-owned oil company that is the parent of Citgo Petroleum Corp.
The measures were devised to close off an “avenue for corruption” that senior administration officials said they had observed Mr Maduro and members of his government using to enrich themselves. The officials, who described the sanctions on the condition on anonymity because they were not authorised to be named discussing them, declined to reveal any specific instances.
The action comes as Venezuela reels from an economic collapse that has caused a humanitarian crisis, as citizens flee a country suffering from food shortages, soaring prices, a broken-down health system and a rash of crime.
On Monday, Vice President Mike Pence condemned Sunday’s balloting in Venezuela in which Mr Maduro won a second term, denouncing the government as a dictatorship and demanding that it allow humanitarian aid into the country.
“The illegitimate result of this fake process is a further blow to the proud democratic tradition of Venezuela,” Mr Pence said in a statement, adding, “The United States will not sit idly by as Venezuela crumbles and the misery of their brave people continues.”
One senior administration official said Mr Maduro, afraid to risk real competition in the contest, had choreographed the election process to his advantage, stacking the courts and National Electoral Council with his cronies, banning opposition leaders and parties, cracking down on media that was not sympathetic to him, and selectively parceling out food and money on Election Day to manipulate hungry Venezuelans into voting for him. The official said Mr Maduro had set up tents just feet away from polling locations where voters had to scan “fatherland cards” to show they voted in exchange for cash or food.
The sanctions are intended to stop Mr Maduro and his government from using a strategy they have pursued to raise cash as their ability to siphon money from the strapped economy weakens. The government has been selling off debt held by government entities for a pittance of what it is worth, the officials said, pocketing the cash and leaving Venezuela’s finances in shambles.