US targets Venezuelan officials ahead of election

The US Treasury Department added another high-ranking Venezuelan official to its sanctions list ahead of a 20 May presidential election that Washington and its allies view as fraudulent.

Today's action by the Treasury targets Diosdado Cabello, a former national assembly president and second highest-ranking leader of the ruling United Socialist Party (PSUV) after president Nicolas Maduro. Other additions to the sanctions list include Cabello's wife — and Venezuela's tourism minister — Marleny Contreras and his brother David Cabello, who has served as the chief of the national Seniat tax authority since 2008. The Treasury's sanctions also affect Rafael Sarria, whom it described as a front man for Diosdado Cabello, and three Florida-based companies allegedly linked to him.

"We are imposing costs on figures like Diosdado Cabello who exploit their official positions to engage in narcotics trafficking, money laundering, embezzlement of state funds, and other corrupt activities," treasury secretary Steven Mnuchin said.

The US already has added dozens of Venezuelan officials to its sanctions list, including Maduro and vice president Tareck El Aissami, accusing them of corrupt activities or facilitating drug trafficking, or both. US officials say they have seized hundreds of millions of dollars in US assets following the designations last year. Cabello has been on the EU sanctions list since January. The EU and Canada similarly have included Maduro and other Venezuelan officials on their sanctions lists.

Maduro advanced this year's election from December to 20 May to neutralize his divided opponents and diminish the risks of a deeper economic catastrophe that would undermine his re-election bid. Venezuela produced barely 1.5mn b/d of crude in April 2018, a decline of more than 25pc on the year, according to figures communicated directly to Opec by the energy ministry.

The US has warned Caracas of consequences — possibly through oil sector sanctions — if Maduro does not postpone the election. "The US stands with the people of Venezuela and calls for truly fair, free, and credible elections that would represent the will of the people," the White House National Security Council said.

The US administration still is weighing oil sector sanctions against Venezuela, even though an outright embargo on sales now seems unlikely. The quickening tempo of Venezuela's economic collapse is weighing over the US decision-making. "We are not the only ones who are responsible for the fallout," US ambassador to the Organization of American States, Carlos Trujillo said. "From the sector-specific sanctions perspective, the entire region should do more."

Regardless of the US action following the 20 May election, debt-related liens levied by US independent ConocoPhillips on the critical Caribbean oil assets of state-owned PdV are threatening oil exports and the servicing of oil-backed loans to Venezuela's main patrons, China and Russia.

The IMF projects that the Venezuelan economy will shrink by 15pc this year — a cumulative 50pc decline since Maduro became president in 2013 — while inflation will soar to nearly 14,000pc. Almost 1.6mn Venezuelans have fled to neighboring countries and beyond in the last two years — even though Maduro says there is no emigration crisis.

"We continue to urge the Maduro regime to allow international humanitarian aid into Venezuela to bring urgently needed medicine, food, and basic necessities for the country's malnourished population," the White House said. The Lima group of 13 Latin American and Caribbean governments, plus Canada, likewise called on Maduro to allow in humanitarian aid. The Lima Group also urged Maduro to provide health information on migrants, reflecting concerns about disease outbreaks in border areas.