TRUMP ADMINISTRATION IMPOSES NEW SANCTIONS ON VENEZUELA
September 8, 2017
In clear opposition to the regime of Venezuelan President Nicholas Maduro, the Trump Administration on July 31, 2017 hit Maduro with sanctions just one day after he declared a victory that would reportedly allow him to consolidate his power.
Effective July 31, 2017, the U.S. Treasury Department put a freeze on all of President Maduro’s assets that are subject to U.S. jurisdiction. The new sanctions also bar U.S. citizens from dealing with President Maduro. Interestingly, Maduro joins a small fraternity of just a few heads of state to be sanctioned by the U.S. government. Others include Syrian President Bashar al-Assad, North Korea’s Supreme Leader Kim Jong Un, Zimbabwe’s President Robert Mugabe, former Yugoslav President Slobodan Milosevic, and Manuel Noriega, the former military dictator of Panama.
Then, on August 25, 2017, the White House imposed a new round of economic sanctions on Venezuela. These newest prohibitions restrict trading of Venezuelan bonds, which are sold in American financial markets by the Maduro government in order to raise money outside of Venezuela’s depressed economy. While President Trump ultimately decided not to prohibit imports of Venezuelan oil to American refineries (which likely would have crippled the Venezuelan government), the policies with respect to bond trading could increase the likelihood of a default by the Venezuelan government on its debts in late 2017. It is reported that Venezuela’s cash reserves have depleted to just $10 billion, the lowest in more than 70 years.
According to the White House, the measures 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.”
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
Share This Post
Authors
