US imposes new sanctions on Venezuela

The US imposed new sanctions against Venezuela on Monday after the re-election of President Nicolás Maduro in a landslide vote that has been widely condemned by the international community.

In an executive order, US president Donald Trump banned the purchase of debt and accounts receivables issued by the South American country or its state oil company PDVSA.

"This measure is designed to stop the government of Venezuela from mortgaging the country's future, and [to stop officials] lining their own pockets," a senior administration official told a conference call. "It covers all debt and accounts receivables, debt pledged as collateral, and [trading or purchase] of any equity interest in which the Venezuelan state owns more than 50%," he added.

The announcement came less than 24 hours after Maduro won a new six-year term in a poll blighted by an opposition boycott and claims of electoral fraud.

Trump has previously slapped individual and economic sanctions on Venezuela's government for alleged rights abuses and corruption.

'KLEPTOCRACY'

Washington said the latest move aims to stymie the socialist government's attempts to raise cash via asset sales amid an economic crisis marked by acute food shortages and a lack of hard currency.

"We now are seeing literally a smash-and-grab type of behavior by the regime, with anything that isn't bolted down, they're looking to sell off," said the official, who asked to remain anonymous. "The region has never seen a kleptocracy like this."

Despite stepping up pressure on Caracas, the US continues to stop short of a direct embargo against Venezuela's oil industry, which is responsible for 95% of its export earnings.

Analysts have told BNamericas that Trump might consider imposing a ban on the sale of US refined products and light oil to the OPEC country after the election.

Spokespeople for the Venezuelan government and PDVSA were not immediately available for comment.

The US official said Washington has also had "pointed discussions" with Russia and China about "throwing good money after bad."

BACKLASH

Meanwhile, the Lima group of 14 countries from the Americas recalled their Caracas-based ambassadors on Monday in protest at Sunday's vote. Among them were Argentina, Brazil, Mexico, Colombia, Chile, Panama and Peru.

In addition, Argentina, Canada, Australia, Mexico, Chile and the US issued a joint statement during the G20 summit in Buenos Aires, in which they rejected the election result.

"Taking into account the lack of legitimacy of the electoral process we do not recognize the results of (Sunday's) election ... which excluded the participation of some political actors," Argentina's foreign minister Jorge Faurie said.

Bucking the trend were Russia, El Salvador, Cuba and China, whose governments sent congratulatory messages to Maduro.

"The Russian president wished Maduro good health and success in resolving the social and economic issues facing the country," the Kremlin said in a statement.

BOYCOTT

Maduro's victory came despite one of the worst recessions in Latin America's recent history. Some 5,000 Venezuelans are leaving the oil-rich nation every day, according to the UN, driven away by hyperinflation, hunger and lawlessness.

According to Venezuela's National Election Council (CNE), Maduro received 5.8mn votes - 67.7% of the total - compared to 1.8mn for former Lara state governor Henri Falcón. Evangelical pastor Javier Bertucci was third with 925,000 votes.

The CNE said 46.1% of eligible voters took part, down from 80% in the 2015 presidential election, as millions heeded an opposition call to boycott the vote. The MUD coalition, which did not field a candidate, put the turnout at 12%.

Falcón and Bertucci reported more than 350 electoral violations during the ballot.

Originally slated for December, the election was brought forward by the government in January, a move that critics said aimed to take advantage of a weak and fractured opposition.

Maduro's most popular rivals, Leopoldo López and Henrique Capriles, were barred from running. López remains under house arrest on charges of inciting violence at opposition rallies while Capriles was banned for alleged misconduct when he was a state governor.