The US Secretary of State decided to impose the following sanctions on Venezuela’s state oil company PDVSA in response to shipments of fuel to Iran, according to a US government official briefed on the matter. These are the mandatory sanctions required by the US law that imposed sanctions on Iran in an effort to get Iran to halt any possible nuclear weapons program. The sanctions imposed on PDVSA (not on Venezuela’s government, mind you) are:
– A prohibition on US government procurement contracts (just PDVSA, not subsidiaries such as Citgo)
– A ban on new export licenses (existing licenses will be respected)
– A ban on Export Import (Exim) Bank financing (not very important, as Exim Bank stopped lending to Venezuela before the PDVSA strike and lockout in 2003)
Basically, weak sanctions. But still, US sanctions on Venezuela. Expect fireworks.
UPDATE: The Associated Press version.