Latin America rolling out Venezuela sanctions

Latin American countries that belong to the Lima Group have begun rolling out targeted sanctions on Venezuela in the tense run-up to Venezuelan President Nicolas Maduro´s 10 January inauguration for a disputed second six-year term.

The sanctions are focused on senior Venezuelan government officials rather than the country´s state-run oil industry that brings in most foreign exchange. Latin American and Caribbean countries with ties or potential ties to Venezuelan state-owned oil company PdV, such as Trinidad and Tobago and other Caribbean islands, have steered clear of confronting Caracas. Mexico, under new leftist president Andres Manuel Lopez Obrador, has adopted a neutral stance but remains a member of the Lima Group.

Peru's foreign ministry yesterday announced travel bans on 93 high-ranking Venezuelan officials and their families, including Maduro. Foreign minister Nestor Popolizio said Peru's banking system had been alerted to impede financial transfers from people on the list. Aside from Maduro, the names on the list were not disclosed.

Colombia´s foreign minister Carlos Holmes Trujillo said today that measures consistent with the Lima Group declaration of 4 January, including travel bans on senior Venezuelan government officials, would be announced shortly.

Holmes noted that Colombian diplomatic ties with Venezuela remain in place through respective commercial attaches in Caracas and Bogota, adding that Colombian companies and citizens remain in Venezuela. He dismissed any military approach to restoring Venezuelan democracy.

Colombia is most exposed to the Venezuelan crisis because of its 2,200km border and a massive influx of more than 1mn Venezuelan migrants.

Other leading members of the Lima Group, such as Chile, Argentina and Brazil, have not commented on possible measures, but some are likely to be unveiled in coming days.

The announcements coincided with another round of US targeted sanctions announced by the US Treasury Department today. The latest penalties are tied to a $2.4bn currency exchange scheme involving seven individuals, including Raul Gorrin and Globovision, a television station that was formerly critical of the government until Gorrin purchased it in 2013. Washington already has individual and financial sanctions on the government and PdV. The EU and Canada also have targeted sanctions in place.

Venezuela´s government has denounced the sanctions and claims the Lima Group is taking orders from Washington in a bid to topple the Maduro government. Caracas is now seeking to shake off the US financial sanctions through the World Trade Organization (WTO).

The anti-Maduro camp, including the Lima Group and Washington, recognizes Venezuela´s opposition-controlled National Assembly, which was elected in December 2015. The body recently elected deputy Juan Guaido as its new president, a figure that some Maduro opponents are seeking to install as an interim president until new elections are held.

Maduro is counting on the presence of Chinese, Turkish and Russian officials at his 10 January swearing in before what is seen as a rubber-stamp supreme court. One court justice, Christian Zerpa, fled to the US this week.

The Lima Group countries that signed the 4 January declaration rejecting the legitimacy of Maduro´s new term are Argentina, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Guyana, Honduras, Panama, Paraguay, Peru and Santa Lucia.