The United States has intensified its campaign against Venezuelan President Nicolás Maduro by imposing new sanctions on four companies associated with the country’s oil sector. Announced by the Treasury Department’s Office of Foreign Assets Control (OFAC), the action targets oil tankers identified as supporting Maduro’s government. The sanctions mark an escalation in the broader strategy to apply pressure on Maduro, who faces accusations from the previous Trump administration of narco-trafficking and sanctions evasion.
According to the Treasury’s statement, the vessels are part of a shadow network that allegedly aids in financing Maduro’s regime. Secretary of the Treasury Scott Bessent emphasized the administration’s commitment to blocking the Maduro government from benefiting from oil exports, accusing the regime of contributing to the drug problem in the United States.
The designated vessels, named Nord Star, Lunar Tide, Rosalind, and Della, along with their registered ownership firms, stand accused of being involved in drug smuggling operations across the Caribbean and eastern Pacific. As a result of the sanctions, U.S.-linked properties of the companies are blocked, and dealings with them by U.S. entities require prior OFAC authorization.
Of particular significance is the implementation of the ’50 percent rule’ under which companies half-owned by sanctioned entities are automatically treated as blocked. This regulatory measure poses substantial compliance challenges and potential legal issues for businesses involved in the Venezuelan oil trade.
The international response has been mixed, with some institutions opposing the U.S. measures. United Nations experts have criticized these blockades as violations of international legal norms, highlighting that unilateral sanctions coupled with maritime enforcement are problematic under international law. They referenced Article 2(4) of the UN Charter, expressing concerns over human rights implications for Venezuela and its neighbors.
In contrast, the U.S. administration maintains that sanctions are specifically focused on the regime and do not impact civilians. This position, however, has not shielded Washington from criticism and concerns over regional maritime security and economic impacts on Venezuela. As noted in an article by JURIST, the sanctions are expected to create significant market hesitancy, with companies and insurers growing increasingly cautious about engaging in Venezuela’s oil trade.
The backdrop of these sanctions includes prior U.S. actions such as the seizure of an oil tanker and the deployment of a naval force near Venezuela. The tension stems from accusations, albeit without substantial evidence, of Maduro’s government being part of the alleged ‘Cartel de los Soles’, a supposed foreign terrorist organization. The situation remains fluid, with concerns about potential regional escalation and its implications for international maritime law.