Venezuelan Oil Firm ‘PDVSA’ Hit with Fresh New Economic Sanctions by the US Government

As is common knowledge at this point, Venezuela is currently in the midst of one of its worst financial crisis in recorded history. However, to add fuel to the fire, it has just come to light that the United States government has imposed fresh new sanctions on the country’s state-backed oil firm PDVSA. Not only that, President Trump has even “urged Venezuela’s top military brass” to help facilitate a peaceful transfer of power so that financial stability can once again be restored within the S.American nation.

In regards to the above-stated matter, it is worth mentioning that according to official reports, the PDVSA is all set to present the Petro to OPEC as a “unit of account” for oil in the near future.

A Little Background Of The Issue

Over the course of the past year or so, the Venezuelan economy has tanked to a point where the country’s inflation levels now lie at over the 1,000,000 percent mark. As a result of this insane destabilization, US national security adviser John Bolton recently went on record to state:

“Maduro can no longer loot the assets of the Venezuelan people because they already have nothing left”.

All of these statements have come at a time when the opposition is mounting its pressure on Maduro to step down from his post— with more than 20 nations (including the US) recognizing opposition leader Juan Guaido as Venezuela’s interim president.

If that wasn't enough, last week US treasury secretary Steven Munchin stated that the PDVSA could potentially bypass the aforementioned sanctions levied against it if it were to recognize “Guaido as the nation’s president”. Also, it is worth remembering that the Venezuelan government currently relies extensively on the US for trade support— with the country accounting for more than 40% of Venezuela’s total petroleum exports.

More On The Matter

During a recent appearance on a local news media station, President Maduro said that in light of Munchin’s latest remarks, the PDVSA should launch a petition for legal action against the United States government (so as to protect its US subsidiary Citgo).

Lastly, it is also being widely rumored that if Guaido comes into power, he will ask the Venezuelan Congress to immediately assign new heads for both the PDVSA and Citgo.

Final Take

As many of our readers probably already know, the Petro is Venezuela’s very own crypto offering that was launched by President Maduro during the second half of 2018. At the time of its release, Maduro had announced that each Petro token would be pegged to a barrel of oil in the country’s oilfields. In this regard, the PDVSA was at the forefront of Petro adoption— with the company even requesting other OPEC members to recognize and validate the alt-asset by allowing it to be used for trade/exchange.

Last but not least, late last year the PDVSA released a statement saying that it was all set to present Petro to the OPEC “as a unit of account for oil”. At the time of the announcement, Manuel Quevedo, Venezuela’s Petroleum Minister stated that his government would commence Petro transactions by “the first half of 2019”.

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