Page 4 - LatAmOil Week 25

LatAmOil COMMENTARY LatAmOil

Venezuelan sanctions

reach Mexico

Washington has added two Mexican companies and three Mexican citizens to its sanctions list

ONCE again, the US government has stepped Maduro to step down in favour of opposition
up pressure on the Venezuelan oil sector. More leader Juan Guaido, who was declared interim
WHAT: specifically, the US Treasury Department president more than a year ago.
The US has taken action imposed sanctions last week on a number of As a result, US officials have indicated repeat-
against Mexican entities Mexican companies that have done business edly in recent months that they were willing to
that enable Venezuelan oil with PdVSA, Venezuela’s national oil company expand the sanctions regime by applying it to
exports (NOC), and on the Mexican citizens who con- third parties that were found to be helping Ven-
trol those firms. ezuela keep crude flowing to market. The Treas-
WHY: Nevertheless, Mexico City does not appear to ury Department’s first steps in this direction
The Trump administration be Washington’s primary target. And so far, the involved blacklisting two trading firms affiliated
is keen to push President Mexican government is at least making a show with Rosneft, the state-owned firm that is Rus-
Maduro out of office. of co-operation with the US efforts. sia’s largest oil producer, in February and March.
Since then, the department has taken a close
WHAT NEXT: Aiding and abetting look at several Mexican companies that appear
China may be the The administration of US President Donald to have suspiciously close ties to Caracas. On
ultimate target for the US, Trump set its sights on Venezuela in early 2019. June 18, it took concrete action against those
as it has continued to buy At that time, it imposed new sanctions targeting companies. It announced in a statement that it
Venezuelan oil. PdVSA, the Venezuelan oil sector and various had added Schlager Business Group and Libre
Venezuelan citizens involved with the oil indus- Abordo, along with all of their subsidiaries, to
try in the hope of driving President Nicolas the sanctions list.
Maduro out of office. In the same statement, it reported that
These restrictions have inflicted serious dam- Joaquin Leal Jimenez, Olga Maria Zepeda
age on PdVSA, but they have not put the com- Esparza and Veronica Esparza Garcia were also
pany out of business; nor have they convinced on the list.

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