The United States has announced new sanctions targeting four companies in Venezuela’s oil sector, designating associated vessels as blocked property. This action, revealed on September 27, 2023, by the Treasury Department’s Office of Foreign Assets Control (OFAC), is seen as part of a broader effort to challenge the government of President Nicolás Maduro. The US government has alleged that some of these vessels are linked to a “shadow fleet” supporting Maduro’s regime.
The sanctions specifically affect the oil tankers Nord Star, Lunar Tide, Rosalind, and Della, along with their respective ownership companies. According to the Treasury Department, these firms are believed to be involved in drug trafficking across the Caribbean Sea and eastern Pacific Ocean. Secretary of the Treasury Scott Bessent stated, “These vessels… continue to provide financial resources that fuel Maduro’s illegitimate narco-terrorist regime.”
As a result of these sanctions, any property linked to the designated companies in the US will be blocked. Furthermore, US entities and individuals are prohibited from engaging with these firms without prior OFAC authorization. This measure includes a “spillover” rule, which mandates that any company directly or indirectly owned 50 percent or more by blocked entities will also be treated as blocked. Violations may lead to civil or criminal penalties, with the Treasury Department warning that those involved in the Venezuelan oil trade face substantial sanctions risk.
The international community has raised concerns about the legality of these sanctions. The United Nations has condemned such actions, claiming they violate fundamental international laws. UN experts cited Article 2(4) of the UN Charter, stating, “There is no right to enforce unilateral sanctions through an armed blockade.” They further emphasized that the illegal use of force jeopardizes the human right to life within Venezuela and the region.
Despite widespread criticism, the Trump administration defends its actions, claiming the blockade is “narrowly tailored” and does not target civilians, thus not constituting an illegal act of war. Venezuela has categorically rejected the accusations linked to the sanctions, labeling them as “illegal” and asserting that the US is attempting to undermine its oil industry and instigate political change.
Venezuela’s economy heavily relies on oil exports, and these sanctions are expected to further isolate the country from international markets. The Trump administration aims to restrict Venezuela’s oil trade, heightening economic pressures while raising the risk of increased military tensions in the region.
The announcement follows President Donald Trump’s declaration of a blockade on all sanctioned oil tankers entering or exiting Venezuela. This action comes amidst allegations that President Maduro and associates are part of a purported “foreign terrorist organization” known as the Cartel de los Soles. Although evidence supporting the existence of this cartel remains sparse, tensions have escalated, with the US Navy reportedly conducting multiple actions against vessels suspected of drug trafficking.
Since early September, the UN has documented at least 30 attacks on civilian vessels, and last month, the US seized an oil tanker near Venezuela while deploying a substantial naval force in the Caribbean. The ongoing situation presents significant challenges for Venezuela, as international critics continue to scrutinize the legality of US maritime enforcement actions.
As the situation unfolds, the impact of these sanctions on Venezuela’s oil exports and the potential for regional escalation remain closely monitored.
