Peru sees US sanctions on Venezuela having impact

Peru's foreign minister expects new economic sanctions imposed on Venezuela by the US government will have a "real impact."

"We are convinced that sooner or later these measures are going to have a real impact," Peruvian Foreign Minister Nestor Popolizio told reporters today at the end of an international conference on Venezuela held in Lima, Peru's capital.

He said that representatives from 59 countries at the meeting attentively listened to a read-out of the economic sanctions signed the previous day by US President Donald Trump. The measures were not discussed at the meeting, however.

An executive order by Trump blocks the transfer of any property or shares of property in the US held by the government of Venezuela or anyone determined by the Treasury and State departments to be supporters of the Venezuelan government. Licenses exempting certain business — including those for PdV-owned US independent refiner Citgo — are expected to remain in place.

Popolizio said the different countries at the Lima conference would decide if they want to follow the US lead.

The United States was represented by Commerce Secretary Wilbur Ross and National Security Advisor John Bolton at the conference.

Bolton focused on the sanctions in his remarks, while Ross presented the meeting with a "day after" scenario for the day when Venezuelan President Nicolas Maduro's administration comes to an end.

Ross offered bullet points on Venezuela, saying that the "Maduro government's corruption and incompetence has shrunk the Venezuelan economy more than 60pc in five years."

Among the fixes needed, Ross mentioned Lake Maracaibo, which he said used to produce 400,000 b/d "but is now down to a small fraction of that because of neglect and a shortage of parts for repairs."

He also referenced the Paraguana refinery, which he said accounts for more than two-thirds of Venezuela's installed capacity, but is lacking nearly very part needed for repairs.

Peru's Popolizio said that the countries present agreed on a series of points, including the need for new elections that are free, fair and transparent, and do not include Maduro.

He said that at while some countries are not convinced by ongoing negotiations in Barbados between the Maduro government and the opposition led by National Assembly leader Juan Guaido, "it is the only process underway."

Popolizio said that there was consensus on the need to boost the international response to the humanitarian crisis in Venezuela that has led to more than 4mn Venezuelan leaving the country.

He said the Lima Group, which groups together more than 10 countries in the hemisphere, would continue working to generate international responses to Venezuela

The next Lima Group meeting is planned for September in Brasilia, Brazil.