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  • Sanctions on Venezuela’s Oil Company Just a Start

    With considerable prodding from Congress—especially from the new Republican majority in the House—the Obama Administration and Department of State announced on May 24 that it is placing Venezuela’s national oil company Petróleos de Venezuela (PDVSA) on its list of companies sanctioned for their work in helping expand Iran’s petroleum and gasoline production.

    The action followed PDVSA’s sale of $50 million in petroleum products in late 2010. Venezuelan President Hugo Chavez, moreover, has not backed down on his promise to supply Iran with 20,000 barrels of gasoline per day.

    The new sanctions prohibit PDVSA from competing for U.S. government procurement contracts, from securing financing from the Export-Import Bank of the U.S., and from obtaining U.S. export licenses. These sanctions do not apply to PDVSA subsidiaries and do not prohibit the export of crude oil to the United States. The sanctions will not at present interfere with the operations of Venezuelan-owned refineries and CITIGO distribution or with import of Venezuelan crude oil.

    The measured has long been urged by Republicans in both houses of Congress, including by the chairman of the House’s Western Hemisphere subcommittee Connie Mack (R–FL).

    “It is imperative,” writes former Bush Administration official Jose Cardenas, “that U.S. investigators continue to strip away the layers of the Venezuelan-Iranian axis to examine what other forms of criminality are taking place, such as money laundering and Venezuelan-Hezbollah complicity in drug trafficking, in addition to Venezuelan-Iran military cooperation. (Germany’s Die Welt reported this month that Iran is planning to build medium-range missile bases in Venezuela, astride Panama Canal shipping lanes.)”

    The Chavez regime predictably accused the U.S. of responding to the prohibited sales in “imperial fashion” and warned that it will consider reducing exports to the U.S., an action that might easily do more damage to the Venezuela’s battered economy than to the U.S. Chavez nonetheless will attempt to use the U.S. measures to whip up anti-American sentiment in advance of next year’s presidential elections.

    The latest action is a long-overdue first step toward recognizing that the Chavez challenge presents a long-term threat to U.S. security in Latin America.

    Posted in International [slideshow_deploy]

    7 Responses to Sanctions on Venezuela’s Oil Company Just a Start

    1. Quinterius, US says:

      Why doesn't the US have the guts to stop buying oil from Venezuela. These sanctions are laughable. Apparently, no one has heard that Iran is now self-sufficient in the production of gasoline. In fact, it will be exporting large quantities of gasoline soon. So, Venezuela will not be exporting gasoline to Iran, anyway. In the meantime, as usual, the sanctions will end up punishing American businesses. Pretty soon, almost every country in the world will be sanctioned by the US, except China which will put most of the American industry out of business.

      • Jaws7 says:

        Iran selfs fuel to Afagnistan. I read on the internet it sells about 30% of its fuel needs. Iraq and
        Turmenistan sell the rest. But all this fuel passes thru Iran. It is possible from what I have read
        that some of this fuel ends up being used by Nato and its contractors. The question I ask, if this is
        true, why are these users of Iranian fuel not sanctioned. Another question is why do we use Russian
        rail systems to transport needed supplies to our Afagnistan soldiers. Why don't we sanction Russias
        rail system. After all this rail system must be used when sending weapons to Iran, which may also end up in Syria and with Hezbollah.

    2. luke weyland says:

      As long as USA continues to invade others,

      I have personally desided to boycott anything that comes from the US empire.

    3. Lloyd Scallan (New O says:

      Is this a joke? "Sanctions" against what? Procurements, financing, and export licenses. Yea, that really tough sanction. This Obama led adminstration really does believe the American people are that stupid, especially when the national media refuses to report the facts. Will this joke have any effect on business as usual for Venezuela? In particular slow down the sale of crude to the U.S. or interfere with Venezuelan refinereies from producing and selling 20,000 bbls of gasoline per day to Iran, in exchange for Iran building missile bases within range of this country. Will it stop Obama from "spreading the wealth" to another foreign nation by assuring we buy oil from his buddy Chaves, thus making use even more dependent of foreign crude sources. This is yet another prime example of the deception this bunch of Washington bureaucrats will stoop to continue to deceive and lie to the American people.

    4. Pingback: Las sanciones a Venezuela son sólo el principio | Heritage Libertad

    5. Wes in cincy says:

      How long will it take the American voter to realize if this nation

      is to survive we must get rid of this anti-Americcan administration.

      He is a Muslim wannabee.

      • GB USA says:

        Muslim wannabee? Really? And we wonder how so many extremists have gotten elected to Congress.

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