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US sanctions renewed against Venezuela's oil sector

The United States imposed sanctions Wednesday on four companies that it claimed were operating in Venezuela’s oil sector, along with associated oil tankers. This comes as the administration of President Donald Trump increases pressure on Venezuelan?President Nicolas Maduro.

The sanctions are the latest in Trump's campaign to pressure Maduro. This has also included an increased U.S. presence in the area and more than 20 strikes on vessels suspected of trafficking drugs along the Pacific Ocean or Caribbean Sea.

Trump had announced earlier this month that he would block all vessels sanctioned by the United Nations from entering or leaving Venezuelan waters. This was part of his strategy to put pressure on Maduro. The move has contributed to a drop in Venezuela's oil production this month of about half compared to November.

In a statement, the U.S. Treasury Department announced that it had imposed sanctions against oil traders who were involved in sanction evasion on behalf of Maduro's regime. Four tankers were targeted, and the Treasury accused some of being part of the "shadow fleet".

The term "shadow fleet" is used to describe ships that transport oil under sanctions. The ships are usually old, the ownership is opaque and they do not have top-tier insurance to meet international standards.

The Treasury stated that "Today's actions further signal that those who are involved in Venezuelan oil trade continue to face substantial sanctions risks."

The Venezuelan Communications Ministry, which is responsible for all government press inquiries, did not respond immediately to a comment request.

According to documents and tracking data from Venezuela's PDVSA, ships with the flags of Panama, Guinea, and Hong Kong, as well as Nord Star and Lunar Tide, all tagged Panama, have shipped Venezuelan crude oil or fuel to destinations in Asia and Caribbean this year.

According to PDVSA records, the Hong Kong-flagged Valiant, owned by Aries Global Investment LTD (one of the sanctioned companies), has never carried Venezuelan crude.

After the U.S. The Coast Guard attempted to intercept two other Venezuela-related ships in the Caribbean Sea and are now on their way to Asia.

Washington had earlier in the month named four vessels as terrorists.

Six Venezuelan-related tankers

Treasury Secretary Scott Bessent said that President Trump was clear in his statement: "We will not allow Maduro's illegitimate regime to profit from oil exports while it floods us with deadly drugs."

Maduro, his government and the U.S. have all denied any involvement in criminal activities. The U.S. wants to change the regime of Venezuela and take over its vast oil reserves.

Reports earlier Wednesday stated that the U.S. sanctions on Venezuelan tankers have kept exports from the country almost paralyzed. The accumulation of fuel in Venezuela's onshore storage tanks has forced the state-owned PDVSA into extreme measures to avoid shutting down its refining units.

(source: Reuters)