To raise pressure on Venezuela, the United States sanctioned oil companies based in China and Hong Kong, which have linkages to the South American nation. The Donald Trump administration has issued these sanctions as the companies have links to the Venezuelan oil trade. Certain oil tankers have also been subjected to sanctions, as they were accused of steering clear of restrictions, Hindustan Times reported.
US sanctions Chinese, Hong Kong-based firms
On Wednesday, the US Treasury Department's Office of Foreign Assets Control put four companies linked to Venezuela's oil sector on its sanctions list. The firms include: Corniola Ltd of Zhejiang, Hong Kong-based Aries Global Investment, Krape Myrtle, and Winky International. Four vessels linked to these companies, Della, Nord Star, Rosalind, and Valiant, were also sanctioned.
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The Treasury Department said in a statement, "These vessels, some of which are part of the shadow fleet serving Venezuela, continue to provide financial resources that fuel Maduro's illegitimate narco-terrorist regime." The statement added, "Maduro's regime increasingly depends on a shadow fleet of worldwide vessels to facilitate sanctionable activity, including sanctions evasion, and to generate revenue for its destabilising operations."
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Message to China?
The United States is already in possession of a list of vessels and companies that have connections to the Venezuelan oil trade, for which they are under sanctions. But the trade offensive launched against Chinese firms engaged in the Venezuelan oil trade is a rare occurrence. The measure could be a message to China to leave the scene of confrontation between the United States and Nicolas Maduro's Venezuela. The Latin American nation is heavily dependent upon the oil trade, which carries 95 per cent of Venezuela's revenue. China is their biggest customer.
