US issues fresh sanctions targeting Venezuela’s oil sector

The United States on Wednesday imposed sanctions on ⁠four companies it said were operating in Venezuela’s oil sector as well as associated oil tankers, as President Donald Trump’s administration increases pressure on Venezuelan President Nicolas Maduro.

The sanctions mark the latest action in Trump’s pressure campaign against Maduro, which has included a ramped-up U.S. military presence in the region ‌and more than ‌two dozen strikes on vessels allegedly involved in trafficking drugs in the Pacific Ocean and Caribbean Sea.

Earlier this month, Trump announced a blockade of all sanctioned vessels going in ‌or out of Venezuelan waters as part of a strategy to pressure Maduro, a move that has helped knock down Venezuela’s oil exports this month to about half of their November levels. The U.S. Treasury Department said in a statement it imposed sanctions on oil traders engaged in sanctions evasion for Maduro’s government. Among the targets were four tankers, some of which the Treasury accused of being part of the so-called “shadow fleet”.

The “shadow fleet” refers to ships that carry oil that is under sanctions. They are typically old, their ownership opaque and they sail without top-tier insurance cover to ‌meet 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 the statement. The Venezuelan ‌communications ministry, which handles all press queries for the government, did not immediately respond to a request for comment. Panama-flagged Nord Star, Guinea-flagged Lunar Tide and Hong Kong-flagged Della – all hit with sanctions on Wednesday – 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 information.

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

The supertanker Della, which was scheduled to load crude at Venezuela’s Jose port ‍this month, made a u-turn on December 21 after the U.S. Coast Guard tried to intercept two more Venezuela-related vessels in the Caribbean Sea, and is now on its way to Asia, the tracking ‍data showed.

The sanctions ⁠on the four vessels come after ⁠Washington earlier this month designated six Venezuela-related tankers.

“President Trump has been clear: We will not allow the illegitimate Maduro regime to profit from exporting oil while it floods the United States with deadly drugs,” Treasury Secretary Scott Bessent said in the statement.

Maduro and his government have vehemently denied involvement in criminal activity and says the US is pursuing regime change to take control of Venezuela’s vast oil reserves.

The U.S. blockade stopping sanctioned tankers going in and out of Venezuela has kept the country’s exports almost paralyzed, and the accumulation of residual fuel inventories at Venezuela’s onshore tanks is forcing state company PDVSA to resort to extreme solutions to avoid the shutdown of refining units, Reuters reported earlier on Wednesday.