Reuters: US Warns Foreign Companies to Terminate Oil Contracts with Venezuela

Reuters reports that the United States has warned oil and refining companies worldwide to terminate any contracts with Venezuela or face US sanctions, even if their trade does not involve items previously banned by Washington. This report, published on Thursday, April 8, cites three informed sources and states that the US State Department issued this warning to foreign companies this week. Washington is attempting to oust Nicolas Maduro, the Venezuelan president whose legitimacy has been questioned, by supporting Juan Guaido, the opposition leader who has declared himself interim president. In this context, the United States has enacted new sanctions against Venezuela's oil industry, although some companies from India, Russia, and Europe continue to supply fuel to the country. However, Reuters cites its sources stating that the US State Department has explicitly told these companies that any oil trade with Venezuela, whether direct, indirect, or through barter, constitutes a violation. One of these sources stated, 'This is the approach the United States has taken these days. They have written rules and now they are contacting you to explain that there are also unwritten rules that you must comply with.' Venezuela's total oil exports fell from 1.5 million barrels per day to 920,000 barrels per day in the first month of sanctions. Meanwhile, Russia is considered one of the main supporters of Maduro's government. Venezuela has faced a severe economic crisis during Maduro's presidency. On Thursday, Donald Trump, the US president, called for the withdrawal of Russian military forces that have recently been deployed in Venezuela. However, Russia responded by stating that it has sent a number of its specialists to the country solely in accordance with a military cooperation agreement with Venezuela.