U.S. sanctions on Venezuela bar dealings in new debt, existing bonds

By Sarah Lizee

Olympia, Wash., Aug. 25 – The White House announced on Friday that president Donald J. Trump has signed an executive order imposing new financial sanctions on Venezuela, according to a statement by the press secretary.

The new action prohibits dealings in new debt and equity issued by the government of Venezuela and its state oil company. It also prohibits dealings in certain existing bonds owned by the Venezuelan public sector as well as dividend payments to the government of Venezuela.

The Treasury Department is issuing general licenses that allow for transactions that would otherwise be prohibited by the executive order. These include provisions allowing for a 30-day wind-down period; financing for most commercial trade, including the export and import of petroleum; transactions only involving Citgo; dealings in select existing Venezuelan debts; and the financing for humanitarian goods to Venezuela.

“These 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,” the White House said in the release.

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