PDVSA partners fear reach of latest U.S. sanctions on Venezuela: sources

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PDVSA partners fear reach of latest U.S. sanctions on Venezuela: sources
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Foreign joint venture partners with Venezuelan state-owned oil company PDVSA are...

CARACAS - Foreign joint venture partners with Venezuelan state-owned oil company PDVSA are concerned the latest set of U.S. sanctions on the South American country could disrupt their operations, three industry sources said.

That has raised fears for those companies that the United States will make good on threats to sanction individual firms, and also that banks will limit transactions just to avoid the risk of sanctions as well, the sources said. However, the order threatens to freeze U.S. assets of any person or company determined to have “materially assisted” the Venezuelan government.

The latest measures do not go as far as Washington’s sanctions on Iran’s oil sector, which expressly prohibit foreign countries from purchasing Iranian crude. One industry source said PDVSA’s partners and customers may request clarity on the order from the U.S. Treasury Department, or even request explicit waivers to ensure their activities do not run afoul of regulations.

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