Explainer: U.S. sanctions and Venezuela's trade and oil industry partners

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Explainer: U.S. sanctions and Venezuela's trade and oil industry partners
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The United States last week imposed a sweeping freeze on Venezuelan government a...

HOUSTON/CARACAS - The United States last week imposed a sweeping freeze on Venezuelan government assets in U.S. territory and threatened to sanction any company that works with socialist President Nicolas Maduro’s government, as the Trump administration ratcheted up its bid to force Maduro out.

In January the United States imposed sanctions on Venezuela’s most important global business - producing and selling crude oil, which accounts for more than 95 percent of the country’s export revenue. U.S. refineries had been Venezuela’s top customer, and output has fallen by some 40 percent since then.

Oil industry sources warned that if Washington follows through on its threat to sanction non-U.S. companies that do business with state oil company PDVSA, production could collapse further - increasing the squeeze on Maduro.Venezuela’s crude production was between 734,000 and 1.05 million barrels per day in June, according to secondary sources and self-reported figures quoted by the Organization of the Petroleum Exporting Countries in its July oil market report.

The asset freeze announced in early August threatens sanctions against any company deemed by Washington to be “materially assisting” Venezuela’s government.

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