Trading firms wind down Venezuela transactions

US sanctions on Venezuelan national oil company PdV have led at least two trading houses to halt new crude and fuel swaps with the firm.

The decisions further isolate Venezuela's oil production and President Nicolas Maduro from international markets as western governments push support for National Assembly head Juan Guaidó.

Lukoil president Vagit Alekperov said in Sochi that the company's trading arm, Litasco, halted swap deals with Venezuela following the imposition of US sanctions.

"Before the restrictions were imposed, Litasco had operations to supply products and crude, and there were swap operations," Alekperov said. "Now there are none."

Swiss-based Trafigura also halted any new transactions with PdV in light of the sanctions and was completing past trades under a longstanding swap agreement, according to a source familiar with the decision.

Swiss trading company Vitol declined to comment on trading activity and said it complied with "all applicable legislation and sanctions."

Glencore did not respond to a request for comment.

The US imposed sanctions on 28 January blocking payments to PdV until a new, democratically elected government takes control of the company. Most Latin American and EU governments, the US and Canada have recognized Guaidó as interim president. Maduro has vowed to stay in power.

Sanctions discourage existing and potential transactions with the company by directing any transactions using US financial institutions or personnel to escrow accounts. Oil deliveries to the United States must wind down by 28 April, though refiners have said sanctions restrictions and PdV demands for up front payments effectively halted those transactions.