US targets banks after Venezuela arrests Guiado aide
The US administration today imposed sanctions on Venezuelan state-owned National Development Bank (Bandes) and other financial institutions to protest the arrest yesterday of a top aide to Juan Guaidó, whom Washington recognizes as the country's interim leader.
Venezuelan National Assembly speaker Guaidó's chief of staff Robert Marrero was taken into custody by Venezuelan intelligence service agents in Caracas. Venezuelan president Nicolas Maduro retains control of the government's security and military forces, despite Washington's efforts to remove him from power by oil and financial sanctions. US officials and lawmakers reacted strongly to Marrero's detention, in part out of concern that it may presage a similar fate for Guaidó.
"The regime's continued use of kidnapping, torture, and murder of Venezuelan citizens will not be tolerated by the US or the international coalition that is united behind President Guaido," US treasury secretary Steven Mnuchin said. "Roberto Marrero and other political prisoners must be released immediately."
Maduro last year ordered Bandes to approve hard currency loans meant to "protect" local industries affected by new government price control mechanisms. Treasury said today that Maduro in January attempted to transfer $1bn out of Venezuela via Bandes to its Uruguay-based subsidiary Banco Bandes Uruguay.
In addition to Bandes and its Uruguyan subsidiary, the Treasury also imposed sanctions on banks in Venezuela and Bolivia where Bandes is a major shareholder.
Uruguay along with Mexico is promoting a political dialogue in Venezuela, an approach backed by Maduro and rejected by the Lima Group of mostly Latin American countries that are seeking to isolate Maduro with diplomatic and political measures. Bolivia is a close political ally of Caracas.
The banks targeted by sanctions include Venezuela-based Banco de Venezuela and Banco Bicentenario del Pueblo and Bolivia-based Banco Prodem. Treasury has given those banks' US counterparts until 21 May to wind down business with those banks, carving out exemptions for maintenance of US citizens' accounts and provision of credit card services by major providers, until 22 March 2020.
The State Department separately expressed concerns over the safety of US citizens detained in Venezuela in recent years, including former top executives of state-owned PdV's US refining subsidiary Citgo.
The US already has removed its diplomatic and consular staff from Caracas and has not yet designated a third country to protect US citizens and the embassy in Venezuela. The State Department cited "reports of Venezuelan prison officials preventing attorneys and families of detained US citizens from delivering food and denying routine communication" and vowed to "hold Maduro and his prison officials to account for their safety and well-being." It said that six former Citgo executives have gone more than a year without a scheduled hearing. The Maduro government had denied the US access to them even before the departure of US diplomats, as the executives hold dual US and Venezuelan citizenship.
The US policy of sanctions and pledges of humanitarian aid delivery have not succeeded so far in loosening Maduro's hold on power, as he retains the support of senior military commanders and paramilitary groups.
The prospect of US military intervention against the Maduro government already looks hypothetical. The administration has said it would impose even more stringent sanctions on Venezuela's oil sector if Maduro does not step down.
Sanctions already in place give US refiners until 28 April to wind down imports and immediately cut exports of diluents required to keep a large chunk of Venezuelan exports flowing. It requires those refiners that still take cargoes to deposit payments in escrow accounts off limits to Maduro's government. US oil field service companies have until 27 July to exit Venezuela.
US imports of Venezuelan crude fell to zero for the first time in the week to 15 March, after averaging 134,000 b/d in three weeks to 8 March, according to preliminary weekly Energy Information Administration data.
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LNG Energy eyes sanctions-hit Venezuela oil blocks
LNG Energy eyes sanctions-hit Venezuela oil blocks
Caracas, 25 April (Argus) — A Canadian firm plans to revive two onshore oil blocks in Venezuela, but the conditional deals signed with struggling state-owned PdV come just as the US is reinstating broad sanctions on the South American country. LNG Energy Group's Venezuela unit agreed two deals with PdV to boost output in five fields in the Nipa-Nardo-Niebla and Budare-Elotes blocks, which produce about 3,000 b/d of light- to medium-grade crude, the company said on Wednesday. The Canadian company, which operates in neighboring Colombia, would receive 50-56pc of production of the blocks. Venezuela's oil ministry declined to comment. But finalizing the contracts depends on providing required investment to develop the fields within 120 days of the contract signing on 17 April, LNG Energy said. And the signing came on the same day as the US reimposed oil sanctions on Venezuela and gave most companies until 31 May to wind down business. LNG Energy Group said it intends to comply with existing and upcoming US sanctions, noting that the conditional contracts were executed within the terms of the temporary lifting of sanctions — general license 44 — but it will abide by the new license 44A. The reimposition of US sanctions on Venezuela prohibits new investment in the country's energy sector, at the threat of US criminal and economic penalties. "The company will assess in the coming days the applicability of license 44A to its intended operations in Venezuela and determine the most appropriate course of action," LNG Energy said. "The company intends to operate in full compliance with the applicable sanctions regimes." The two blocks are in the adjacent Anzoategui and Monagas states, part of the Orinoco extra heavy oil belt. Most of Venezuela's output is medium- to heavy-grade crude. Both PdV and Chevron have drilling rigs working in those two states, in separate workover and drilling campaigns. Venezuela is now producing above 800,000 b/d, after the US allowed Chevron to increase production and investment under separate waivers. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US economic growth slows to 1.6pc in 1Q
US economic growth slows to 1.6pc in 1Q
Houston, 25 April (Argus) — The US economy in the first quarter grew at a 1.6pc annual pace, slower than expected, while a key measure of inflation accelerated. Growth in gross domestic product (GDP) slowed from a 3.4pc annual rate in the fourth quarter, the Bureau of Economic Analysis (BEA) reported on Thursday. The first-quarter growth number, the first of three estimates for the period, compares with analyst forecasts of about a 2.5pc gain. Personal consumption slowed to a 2.5pc annual rate in the first quarter from a 3.3pc pace in the fourth quarter, partly reflecting lower spending on motor vehicles and gasoline and other energy goods. Gross private domestic investment rose by 3.2pc, with residential spending up 13.9pc after a 2.8pc expansion in the fourth quarter. Government spending growth slowed to 1.2pc from 4.6pc. Private inventories fell and imports rose, weighing on growth. The core personal consumption expenditures (PCE) price index, which the Federal Reserve closely follows, rose by 3.7pc following 2pc annual growth in the fourth quarter, although consultancy Pantheon Macroeconomics said revisions to the data should pull the index lower in coming months. The Federal Reserve is widely expected to begin cutting its target lending rate in September following sharp increases in 2022 and early 2023 to fight inflation that surged to a high of 9.1pc in June 2022. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Barge delays at Algiers lock near New Orleans
Barge delays at Algiers lock near New Orleans
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Iraq to keep 3.3mn b/d crude export cap until year end
Iraq to keep 3.3mn b/d crude export cap until year end
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