Russia’s Evrofinance Mosnarbank Sanctioned By The US After Being Backed Venezuela’s Petro

Russia’s Evrofinance Mosnarbank Sanctioned By The US After Being Backing Venezuela’s Petro

The United States has decided to add the Russian bank Evrofinance Mosnarbank to its sanctioning list managed by the Treasury Department. According to an official press release published a few days ago, the institution explains that the bank was “willing to finance” Venezuela’s virtual currency called Petro.

US Treasury Sanctions Evtofinance Mosnarbank

The Treasury accused the bank to help Venezuela launching the Petro national cryptocurrency. This digital asset is backed by the natural reserves of the country and aimed at revolutionizing the whole Venezuelan economy. However, this did not work as expected and the economy plummetted the same.

The statement released by the US Treasury Department reads as follows:

“When the failed Venezuelan cryptocurrency called the Petro, launched in 2018, Evrofinance emerged as the primary international financial institution willing to finance the Petro. Early investors in the Petro were invited to buy the cryptocurrency by wiring funds to a Venezuelan government account at Evrofinance.”

Additionally, the digital asset aimed at improving Venezuela’s access to international funds after receiving US sanctions. Moreover, Hugo Chavez, Maduro’s predecessor purchased almost 50% stake in Evrofinance using the Venezuelan National Development Fund in 2011.

European and American financial institutions have already cut ties with institutions in Venezuela and the government of the country. Maduro has been trying to remain in power even when the National Assembly of the nation voted for Juan Guaidó as the new president of Venezuela.

The bank is also accused of supporting the state-owned oil company PDVSA that has been sanctioned by the United States in January 2019. Indeed, PDVSAused the Petro as a unit of account to trade Venezuelan crude oil.

Back in 2017, Guaidó claimed that the Petro was a scam and dismissed the plans to implement it in the economy. The country aimed at gathering funds with the Petro and avoid financial sanctions. Argentina and Poland have already rejected the digital asset as a means of payment after Venezuela offered these two nations to pay for goods and services using the virtual currency.

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