Updated July 5, 2019
Venezuela: Overview of U.S. Sanctions
For more than a decade, the United States has employed
State), and Ramón Rodríguez Chacín (former interior
sanctions as a policy tool in response to activities of the
minister); in 2011, Freddy Alirio Bernal Rosales and
Venezuelan government and Venezuelan individuals. These
Amilicar Jesus Figueroa Salazar (United Socialist Party of
have included sanctions related to terrorism, drug
Venezuela, or PSUV, politicians), Major General Cliver
trafficking, trafficking in persons, antidemocratic actions,
Antonio Alcalá Cordones, and Ramon Isidro Madriz
human rights violations, and corruption. Currently, the
Moreno (a Venezuelan intelligence officer); in 2017, then-
Treasury Department has financial sanctions on 115
Vice President Tareck el Aissami; and in May 2018, Pedro
individuals, and the State Department has revoked the visas
Luis Martin (a former senior intelligence official) and two
of hundreds of individuals. On January 28, 2019, the Trump
associates. Others designated include drug trafficker Walid
Administration announced sanctions on Venezuela’s state-
Makled, three dual Lebanese-Venezuelan citizens allegedly
oil company, Petróleos de Venezuela, S.A. (PdVSA). Prior
involved in a drug money-laundering network, and several
to the imposition of the PdVSA sanctions, the United States
Colombian drug traffickers with activity in Venezuela.
recognized Juan Guaidó, the head of Venezuela’s National
Assembly, as the country’s interim president and ceased to
Targeted Sanctions Related to Antidemocratic
Actions, Human Rights Violations, and Corruption
recognize Nicolás Maduro as the president of Venezuela.
In response to increasing repression in Venezuela, Congress
Terrorism-Related Sanctions
enacted the Venezuela Defense of Human Rights and Civil
Since 2006, U.S. officials have expressed concerns about
Society Act of 2014 (P.L. 113-278; 50 U.S.C. 1701 note) in
Venezuela’s lack of cooperation on antiterrorism efforts.
December 2014. Among its provisions, the law requires the
Since then, the Secretary of State has made an annual
President to impose sanctions (asset blocking and visa
determination that Venezuela is not “cooperating fully with
restrictions) against those whom the President determines
United States anti-terrorism efforts” pursuant to Section
are responsible for significant acts of violence or serious
40A of the Arms Export Control Act (22 U.S.C. 2781). The
human rights abuses associated with protests in February
most recent determination was made in May 2019. As a
2014 or, more broadly, against anyone who has directed or
result, the United States has prohibited all U.S. commercial
ordered the arrest or prosecution of a person primarily
arms sales and retransfers to Venezuela since 2006.
because of the person’s legitimate exercise of freedom of
expression or assembly. In 2016, Congress extended the
In 2008, the Treasury Department imposed sanctions (asset
2014 act through 2019 in P.L. 114-194.
freezing and prohibitions on transactions) on two
individuals and two travel agencies in Venezuela for
In March 2015, President Obama issued E.O. 13692 to
providing financial support to the radical Lebanon-based
implement P.L. 113-278, and the Treasury Department
Islamic Shiite group Hezbollah. The action was taken
issued regulations in July 2015 (31 C.F.R. Part 591). The
pursuant to Executive Order (E.O.) 13224, aimed at
E.O. targets (for asset blocking and visa restrictions) those
impeding terrorist funding.
involved in actions or policies undermining democratic
Drug Trafficking-Related Sanctions
processes or institutions; those involved in acts of violence
or conduct constituting a serious human rights abuse; those
U.S. concerns about the lack of Venezuelan cooperation on
taking actions that prohibit, limit, or penalize the exercise
counternarcotics efforts date back to 2005. Since then, the
of freedom of expression or peaceful assembly; public
President has made an annual determination, pursuant to
corruption by senior Venezuelan officials; and any person
procedures set forth in the Foreign Relations Authorization
determined to be a current or former leader of any entity
Act, FY2003 (P.L. 107-228, §706; 22 U.S.C. 2291j), that
engaged in any activity described above or a current or
Venezuela has failed demonstrably to adhere to its
former official of the government of Venezuela.
obligations under international narcotics agreements.
President Trump made the most recent determination for
Currently, the Treasury Department has financial sanctions
FY2019 in September 2018, but also waived foreign aid
on 85 Venezuelans pursuant to E.O. 13692. Under the
restrictions for programs to support democracy promotion.
Obama Administration, the Treasury Department froze the
assets of seven Venezuelans—six members of Venezuela’s
The Treasury Department has imposed economic sanctions
security forces and a prosecutor who repressed protesters.
on at least 22 individuals with connections to Venezuela
Under the Trump Administration, the Treasury Department
and 27 companies by designating them as Specially
currently has sanctions on an additional 78 Venezuelan
Designated Narcotics Traffickers pursuant to the Foreign
government and military officials. These officials include
Narcotics Kingpin Designation Act (Kingpin Act; P.L. 106-
President Nicolás Maduro and his wife, Cecilia Flores;
120, Title VIII; 21 U.S.C. 1901 et seq.).
Executive Vice President Delcy Rodriguez; PSUV First
Designated individuals include several current or former
Vice President Diosdado Cabello; eight Supreme Court
Venezuelan officials: in 2008, General Hugo Carvajal
members; the leaders of Venezuela’s army, national guard,
(former military intelligence head), General Henry Rangel
and national police; four state governors; the director of the
Silva (former defense minister and governor of Trujillo
Central Bank of Venezuela; and the foreign minister. On
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Venezuela: Overview of U.S. Sanctions
May 7, 2019, the Treasury Department lifted sanctions
U.S. currency and limit its ability to conduct international
against the head of Venezuela’s intelligence service,
financial transactions. On July 3, the Treasury Department
General Manuel Cristopher Figuera, who broke ranks with
removed sanctions on one of the shipping companies and 8
Maduro. On June 28, 2019, the Treasury Department
of its vessels sanctioned in April after the company cut ties
sanctioned Maduro’s son, Nicolas Maduro Guerra, a
with the Maduro government, but Treasury designated
member of the illegitimate Constituent Assembly.
Cuba’s state-run oil import and export company.
Broader Sanctions on the Oil and Gold Sectors
Additional Financial Sanctions
On November 1, 2018, President Trump issued E.O. 13850,
In addition to targeted sanctions, President Trump has
setting forth a framework to block the assets of, and
imposed financial sanctions on Venezuela through three
prohibit certain transactions with, any person determined by
additional E.O.s because of the government’s serious
the Secretary of the Treasury, in consultation with the
human rights abuses, antidemocratic actions, and
Secretary of State, to operate in the gold sector (or any
responsibility for the deepening humanitarian crisis. In
other sector of the economy as determined in the future by
August 2017, he issued E.O. 13808, which prohibits access
the Secretary of the Treasury) or to be responsible for or
to the U.S. financial markets by the Venezuelan
complicit in transactions involving deceptive practices or
government, including PdVSA, with certain exceptions to
corruption and the Venezuelan government. Currently, six
minimize the impact on the Venezuelan people and U.S.
individuals are sanctioned pursuant to E.O. 13850: five
economic interests. The sanctions restrict the Venezuelan
were sanctioned in January 2019 for involvement in a
government’s access to U.S. debt and equity markets.
corruption scheme involving Venezuela’s currency
exchange practices that generated more than $2.4 billion in
In March 2018, President Trump issued E.O. 13827 to
corrupt proceeds; the president of Venezuela’s state gold
prohibit transactions involving the Venezuelan
mining company was sanctioned in March 2019.
government’s issuance of digital currency, coin, or token.
The Maduro government launched a cryptocurrency known
On January 28, 2019, pursuant to E.O. 13850, the Treasury
as the petro in 2018 in an effort to circumvent sanctions.
Department designated PdVSA as operating in the oil sector
of the Venezuelan economy, and Secretary of the Treasury
In May 2018, President Trump issued E.O. 13835, which
Steven Mnuchin determined that the company was subject
prohibits transactions related to the purchase of Venezuelan
to U.S. sanctions. As a result, all property and interests in
debt, including accounts receivable, and to any debt owed
property of PdVSA subject to U.S. jurisdiction are blocked,
to Venezuela pledged as collateral. The action intended to
and U.S. persons generally are prohibited from engaging in
deny corrupt Venezuelan officials the ability to improperly
transactions with the company.
value and sell off public assets in return for kickbacks.
Policy Considerations
At the same time, OFAC issued general licenses to allow
Although Venezuelan oil exports to the United States
certain transactions and activities related to PdVSA and its
already had been declining, sanctions on that trade are
subsidiaries, some within specified time frames or wind-
requiring U.S. refineries that process Venezuelan crude oil
down periods. Transactions with two U.S.-based PdVSA
to find alternative sources. Some analysts are concerned
subsidiaries, PDV Holding, Inc. (PDVH) and CITGO
that the stronger sanctions on PdVSA are further
Holding, Inc., originally were authorized through July 27,
exacerbating Venezuela’s difficult humanitarian crisis,
2019, but in March 2019, the Treasury Department
already marked by shortages of food and medicines and
extended a general license for 18 months. PDVH, CITGO,
mass migration, by limiting a key source of revenue. This is
and other U.S. companies were also authorized to import
a particular concern in the event that Maduro remains in
petroleum from PdVSA through April 28, 2019, although
power over an extended period of time. Observers also
payments benefiting PdVSA were to be made to a blocked
maintain that economic sanctions ultimately may need to be
account in the United States. Several U.S. companies with
accompanied by efforts to foster a negotiated solution
operations in Venezuela involving PdVSA are authorized to
leading to free and fair elections.
continue their operations through July 27, 2019.
For guidance on the Venezuela sanctions, see U.S.
In March 2019, the Treasury Department expanded
Department of the Treasury, “Venezuela-Related
sanctions pursuant to EO 13850. On March 11, it
Sanctions,” at https://www.treasury.gov/resource-center/
sanctioned the Moscow-based Evrofinance Mosnarbank,
sanctions/programs/pages/venezuela.aspx; and U.S.
jointly owned by Russia and Venezuela, for helping PdVSA
Department of State, “Venezuela-Related Sanctions,” at
funnel its cash flow from oil sales. On March 19, it
https://www.state.gov/e/eb/tfs/spi/venezuela/.
sanctioned Venezuela’s state-owned gold sector company,
Minerven, for using illicit gold operations to help the
Also see CRS In Focus IF10230, Venezuela: Political
regime financially. On March 22, it sanctioned the state-
Crisis and U.S. Policy; CRS Report R44841, Venezuela:
affiliated Venezuelan Economic and Social Development
Background and U.S. Relations; and CRS Insight IN11037,
Bank (BANDES) and five of its subsidiaries that the
Venezuela Oil Sector Sanctions: Market and Trade Impacts.
Maduro regime uses to move money outside of Venezuela.
Clare Ribando Seelke, Specialist in Latin American
In April 2019, the Treasury Department sanctioned 44
Affairs
vessels (along with 6 shipping companies) involved in
Mark P. Sullivan, Specialist in Latin American Affairs
transporting Venezuelan oil, including 5 companies that had
IF10715
transported Venezuelan oil to Cuba. On April 17, Treasury
sanctioned Venezuela’s Central Bank to cut off its access to
https://crsreports.congress.gov

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Venezuela: Overview of U.S. Sanctions


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https://crsreports.congress.gov | IF10715 · VERSION 21 · UPDATED

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