The state oil firm was responsible for the "country's tragic decline," said the US treasury secretary. Washington has backed the self-declared interim president of Venezuela, throwing the country deeper into crisis.
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The US said on Monday that it would impose sanctions on Venezuela's state oil company Petroleos de Venezuela (PDVSA), as it ramps up pressure on the country's president, Nicolas Maduro.
US Treasury Secretary Steven Mnuchin said the sanctions were meant to prevent Maduro from diverting more resources from the crisis-hit country, until control in Caracas could be transferred to Guaido's interim government or a new democratically elected government.
Mnuchin specified that PDVSA's US-based subsidiary Citgo could continue operations, so long as its earnings are deposited into a blocked account in the US. Maduro accused the US of attempting to steal Citgo, saying the state oil firm will seek legal action against the US.
Washington was "holding accountable those responsible for Venezuela's tragic decline," Mnuchin told reporters.
US national security adviser John Bolton, who joined the treasury secretary at the White House briefing, said the measures targeted the government corruption that has allowed Maduro to stay in power.
"We have continued to expose the corruption of Maduro and his cronies and today's action ensures they can no longer loot the assets of the Venezuelan people," Bolton said.
"We also today call on the Venezuelan military and security forces to accept the peaceful, democratic and constitutional transfer of power."
Bolton said that "to a certain extent," the transfer of power had already begun. He noted that Venezuela's military attache to Washington had broken ranks with Maduro over the weekend.
Around the same time sanctions were announced, self-proclaimed interim president Guaido announced that he was taking control of the country's foreign assets, in an effort to prevent leader Nicolas Maduro from commandeering them in a possible exit from power.
Guaido said in a statement posted on social media that he would begin the process of naming new boards for PDVSA and Citgo to "start recovering our industry that is going through a dark time."
He also pledged to ask lawmakers to take "the necessary measures to guarantee the greatest transparency and control of the use" of the assets.
Venezuela is considered one of the largest suppliers of crude oil to the US. In 2008, Venezuela represented approximately 12 percent of US crude imports at 1.2 million barrels a day. But over the years, Venezuelan oil exports to the US have steadily declined, due to plummeting production amid a long economic and political crisis.
As a result, the US imported less than 500,000 barrels a day of Venezuelan crude and petroleum products in 2017, or 6 percent of the US market, according to the US Energy Information Administration.
In March 2017, violent protests erupted across the country in response to a Supreme Court decision to strip the legislative branch of its powers. Amid an international outcry, President Nicolas Maduro reversed the decision, but it was too late. Thousands continued to take to the streets, calling for new elections. More than 100 people were killed in clashes with security forces.
Image: Getty Images/AFP/J. Barreto
Hunger, a growing problem
The violence added to the ongoing economic and political crisis in Venezuela. Many Venezuelans spend more than 30 hours a week waiting in lines to shop, and are often confronted with empty shelves when they finally enter a store. President Maduro blames the crisis on US price speculation. The opposition, however, accuses the Socialist government of economic mismanagement.
Image: picture-alliance/AA/C. Becerra
Health care in crisis
The crisis has even affected health care in the oil-rich nation. Venezuelans often head to Colombia to collect medical supplies to send home, as seen in this picture. Hospitals across Venezuela have compared conditions to those seen only in war zones. As patient deaths rise, health officials have sounded the alarm on the rise of malaria and dengue fever.
Image: picture alliance/dpa/M.Duenas Castaneda
Power grab
By July 2017, Venezuela's pro-government Constituent Assembly was established. For observers, it had all the hallmarks of a power grab. The new body adopted the authority to pass legislation on a range of issues, effectively taking away the powers of Venezuela's elected congress, which was under the opposition's control. The move drew wide international condemnation.
Image: picture-alliance/dpa/P. Miraflores
The West sanctions
In response to the political crisis, the United States and European Union imposed a series of sanctions against ruling officials. The US blacklisted members of the Constituent Assembly and froze all of Maduro's assets that are subject to US jurisdiction. The EU banned arms sales to the country.
Image: picture-alliance/dpa/AFP/T. Schwarz
Government victorious in regional elections
In October 2017, Venezuela held two votes: regional elections and elections for governors, which were long overdue. The opposition boycotted the vote, but then split, as some candidates and small parties chose to participate. This caused a deep rift within Maduro's opponents. The government went on to sweep the vote, which detractors say was unfair and heavily favored the regime.
Image: picture-alliance/AP Photo/A. Cubillos
Debt default
In November 2017, the oil-rich, cash-poor nation faced its day of reckoning. Credit ratings agencies declared Venezuela and its state-run oil company in "selective default." But Russia offered to restructure the South American country's debt to ensure Caracas pays its other creditors. US and EU sanctions, however, limited the chance of an agreement.
Image: picture-alliance/AP Photo/A. Cubillos
Presidential elections scheduled
The National Assembly announced in January 2018 that it would grant Maduro's call for snap presidential elections. The electoral authority, CNE, held the elections on May 20. The EU, the US and 14 Latin American nations warned that they would not recognize the results. The mainstream MUD opposition alliance boycotted the vote, leaving only one possible outcome.
Image: Getty Images/AFP/F. Parra
Maduro wins ...
Maduro was re-elected to a second six-year term with about 68 percent of the vote. Turnout was only 46 percent, according to electoral authorities. However, the MUD opposition alliance put turnout at less than 30 percent. The Organization of American States (OAS) called the elections neither free nor fair.
Image: picture-alliance/AP Photo/A. Cubillos
... Guaido assumes power
But weeks into the new year, the situation took a drastic turn. On January 23, 2019, parliament president Juan Guaido declared himself interim president of Venezuela — a move that was quickly recognized by US President Donald Trump. Maduro called it a US-backed "coup." Days later, the US sanctioned Venezuela's state oil firm, while Guaido staked his claim on the country's foreign assets.