The United States has announced new sanctions targeting four companies within Venezuela’s oil sector, effectively designating four associated oil tankers as blocked property. This decision, made by the US Treasury Department’s Office of Foreign Assets Control (OFAC) on September 27, 2023, is part of an ongoing effort to apply pressure on Venezuelan President Nicolás Maduro amid accusations of narco-trafficking and sanctions evasion.
The Treasury Department’s statement described the sanctioned vessels—Nord Star, Lunar Tide, Rosalind, and Della—as integral to a shadow fleet supporting Maduro’s administration. According to Secretary of the Treasury Scott Bessent, these vessels contribute to the financial resources that sustain what the US government labels as Maduro’s “illegitimate narco-terrorist regime.” Bessent emphasized that the US will not permit this regime to profit from oil exports while simultaneously flooding the country with dangerous drugs.
As a result of these sanctions, any property linked to the designated companies will be blocked, and US individuals and entities are generally prohibited from engaging in transactions with them unless they receive prior authorization from OFAC. The sanctions also include a “spillover” rule, meaning that any company 50 percent owned by a blocked entity will also be treated as blocked, even without direct naming. Violations may lead to civil or criminal penalties, with the Treasury Department warning that those involved in the Venezuelan oil trade face significant risks.
International criticism has emerged regarding these sanctions. Members of the global community, including representatives from the United Nations, have denounced the measures as violations of international law. UN experts asserted that there is no legal basis for enforcing unilateral sanctions through an armed blockade, citing Article 2(4) of the UN Charter. They have warned that the illegal use of force threatens human rights in Venezuela and the surrounding region.
Despite these criticisms, the Trump administration defends its actions as narrowly focused and not targeting civilians, asserting that they do not constitute an illegal act of war. Venezuela has rejected the sanctions, labeling them as “illegal” and claiming that the US seeks to undermine its oil industry to instigate political change.
The sanctions come as Venezuela’s economy continues to struggle. The country relies heavily on oil exports, and the Trump administration’s recent actions aim to isolate Venezuela from international markets. As the Venezuelan government dismisses the sanctions and international observers question their legality, the impact on Venezuela’s oil exports is expected to deepen. Companies and insurers may become increasingly hesitant to engage in trade with Venezuela, raising concerns about further economic decline and the potential for regional instability.
The sanctions follow President Trump’s announcement of a “blockade” on all sanctioned oil tankers entering or leaving Venezuela, a move linked to allegations that Maduro and his associates are part of a foreign terrorist organization known as the Cartel de los Soles. Despite a lack of concrete evidence supporting the existence of this cartel, US military actions, including strikes on vessels suspected of drug trafficking, have escalated tensions in the region. The UN has reported at least 30 attacks on civilian vessels since early September, reflecting the heightened volatility.
In recent weeks, the US Navy has intensified its presence in the Caribbean near Venezuela, conducting operations that have included the seizure of an oil tanker. As the situation evolves, the ramifications of the new sanctions and ongoing military actions will continue to unfold, influencing both the Venezuelan economy and regional security dynamics.
