The White House on Monday announced billions of dollars in new sanctions against Venezuelan President Nicolas Maduro and the country's state-owned oil monopoly PDVSA, less than a week after President Trump formally recognized Juan Guaido as Venezuela's legitimate leader.
National Security Adviser John Bolton, meanwhile, warned that "all options are on the table" and that Venezuela would face a "significant response" if any harm came to US diplomatic personnel, Guaido, or Venezuela's opposition-led National Assembly.
The potentially devastating economic move was aimed at increasing pressure on Maduro to cede power to the opposition. Venezuela is heavily reliant on the U.S. for its oil revenue, and sends 41
"I'm sure many of our Friends in the Middle East will be happy to make the supply, as we push down Venezuela's supply, "Mnuchin continued.
PDSVA is the acronym for Venezuela's state-owned oil company. Critically, U.S. Pat. refiners are among the few customers who pay cash to Venezuela for its oil, because Venezuela's oil shipments to China and Russia are usually taken as repayment for billions of dollars in debts.
Not added: "Effective immediately, any purchases of Venezuelan oil at US entities – money will have to go into blocked accounts. Now, I've been in touch with many of the refineries – there is a significant amount of oil that's at sea, that's already been paid for – that will continue to come to the United States. "The sanctions likely will not affect consumer prices at the gas pump will hit oil refiners, particularly those on the US Gulf Coast. Venezuelan oil exports to the U.S. have declined steadily over the years, falling particularly sharply over the past decade as its production plummeted amid its long economic and political crisis.
"I'm sure many of our friends in the Middle East will be happy to make up the supply . "
The US imported less than 500,000 barrels a day of Venezuelan crude and petroleum products in 2017, down from more than 1.2 million barrels a day in 2008, according to the Energy Information Administration.
Still, Venezuela consistently has been the third or fourth largest supplier of crude oil to the United States, and any disruption of imports could be costly for refiners. In 2017, the most recent year that data was available, Venezuela accounted for about 6 percent or U.S. crude imports
Monday's move was intended to "hold accountable those responsible for Venezuela's tragic decline," Mnuchin said. He mentioned that the White House would continue to "support interim President Guaido, the National Assembly, and the Venezuelan people's efforts to restore their democracy."
In his own comments minutes earlier, Bolton warned that the U.S. would fiercely protect its personnel in the region.
"The people of Venezuela have had enough of oppression, corruption, and economic hardship," Bolton customs reporters, noting that 21 other governments have joined the U.S. a recognition of Guaido as Venezuela's interim president.
Bolton added: "We have continued to expose the corruption of Maduro and his cronies. Today's action is no longer worth the assets of the Venezuelan people … Today's measure up to $ 7 billion in assets blocked today, plus over $ 11 trillion in lost export proceeds over the next year. "" I reiterated that the United States will hold Venezuelan security forces responsible for the safety of all US diplomatic personnel, the National Assembly, and President Guaido, "Bolton continued. "Any violence against these groups would sign a grave assault on the rule of law and will be with significant response." Pressed by Fox News later to define "significant response," Bolton demurred, saying the U.S. would not tip its hand
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Florida Republican Sen. Marco Rubio, a vocal critic of Maduro who has been calling for such sanctions, welcomed the move even before it was announced. "The Maduro crime family has used PDVSA to buy and keep the support of many military leaders," Rubio said. "The oil belongs to the Venezuelan people, and therefore the money PDVSA earns from its export will now be returned to the people through their legitimate constitutional government." Fox News' John Roberts contributed to this report.