The U.S. Considers Oil Sanctions Against Venezuela

Following a surge in protests against the Venezuelan government that resulted in the deaths of 60 citizens, the United States is considering imposing oil sanctions on the leftist government of Nicolas Maduro. According to Reuters, the U.S. government plans to sanction Venezuela's national oil company. The report, published on Sunday, June 4, indicates that a blow to the heart of Venezuela's economy, namely the oil sector which constitutes 95% of the country's exports, comes amid violent clashes between the government and opponents protesting the economic situation in Venezuela. The South American country is currently facing extremely high inflation and shortages of food and consumer goods. Reuters, citing several U.S. officials, noted that the issue of sanctions is under review and no definitive decision has been made, as oil sanctions could turn the country's already critical economic situation into a disaster. Previously, Maduro's opponents had called on the international community to sanction his government. U.S. officials, who requested anonymity, told Reuters that sanctions on Venezuela's national oil company would be part of a broader sanctions package against Caracas, targeting the industrial sector for the first time. However, the White House is currently proceeding with caution regarding sanctions, as millions of Venezuelans are already grappling with food shortages and severe poverty. According to the report, in the past two months, the government has violently suppressed street protests, resulting in 60 deaths. U.S. officials told Reuters that another option for Washington is to refrain from purchasing Venezuelan oil. This OPEC member is the third-largest oil exporter to the U.S. after Canada and Saudi Arabia, with 8% of total U.S. oil imports coming from Venezuela in March of this year. Following Donald Trump's presidency, the U.S. has added several senior Venezuelan government and judicial officials to its blacklist and imposed sanctions, but has not applied economic sanctions against the country, as such sanctions would further increase economic pressure on the poor population of this South American country. The U.S. has previously imposed oil economic sanctions against Russia for annexing Crimea and against Iran for its nuclear program. An American official told Reuters that the lightest form of sanction could involve restrictions on Venezuela's oil company from entering contracts with American companies. The news agency noted that officials from the Venezuelan government and its national oil company have refused to comment on the new U.S. sanctions. However, the socialist government of Venezuela has repeatedly accused the U.S. of being behind the ongoing protests in the country and attempting to overthrow the government.