US hits Venezuelan oil sector with sanctions on companies, tankers

The United States imposed sanctions on four companies operating in Venezuela’s oil sector, as well as on several associated oil tankers, intensifying pressure on Venezuelan President Nicolas Maduro.

The sanctions are the latest in a campaign by the Trump administration, which has included a heightened US military presence in the region and more than two dozen strikes on vessels allegedly involved in drug trafficking in the Pacific Ocean and Caribbean Sea, Reuters reports.

Earlier this month, Trump announced a blockade on all sanctioned vessels entering or leaving Venezuelan waters, a measure that has contributed to reducing Venezuela’s oil exports in December to roughly half of November’s levels.

The US Treasury Department said the sanctions target oil traders engaged in evading existing sanctions on Maduro’s government. Among the vessels included were four tankers, some accused of being part of a so-called “shadow fleet.”

The Treasury explained that the “shadow fleet” refers to ships that transport oil under sanctions. These vessels are often older, have opaque ownership, and lack top-tier insurance required by international standards for oil majors and many ports.

“Today’s action further signals that those involved in the Venezuelan oil trade continue to face significant sanctions risks,” the Treasury said in a statement.

Panama-flagged Nord Star, Guinea-flagged Lunar Tide, and Hong Kong-flagged Della, all sanctioned on December 31, have transported Venezuelan crude or fuel this year to destinations in Asia and the Caribbean, according to internal documents from Venezuela’s state energy company PDVSA and ship-tracking data.

A fourth vessel, the Hong Kong-flagged supertanker Valiant, also owned by one of the sanctioned companies, Aries Global Investment LTD, has not carried Venezuelan crude according to PDVSA records.

By Vafa Guliyeva