The United States slapped new sanctions on Venezuela's state oil company PDVSA and six other oil and shipping firms on Tuesday for engaging in trade with Iran in violation of a US ban. Deputy Secretary of State James Steinberg said the move against PDVSA would prevent it from access to US government contracts and import/export financing but would not affect the company's sale of oil to the United States or the activities of its subsidiaries including US-based CITGO.
Steinberg said the US measures were aimed at squeezing Iran's gasoline supplies and could have an amplified impact as other companies recognise the risks of doing business with the Islamic Republic as it faces increasing isolation over its nuclear program.
"By imposing these sanctions we're sending a clear message to companies around the world: those who continue to irresponsibly support Iran's energy sector or help facilitate Iran's efforts to evade US sanctions will face significant consequences," he told a news briefing.
The US move also marks a significant shot across the bow of Venezuela's President Hugo Chavez, a frequent critic of Washington. PDVSA is one of the top five crude oil suppliers to the United States and Venezuela supplies about 10 percent of US crude imports. There was no immediate reaction from Chavez, who has periodically threatened to end oil sales to the United States. The companies covered by the new US sanctions include PCCI, the Royal Oyster Group and Speedy Ship of the United Arab Emirates, Tanker Pacific of Singapore, Ofer Brothers Group of Israel and Associated Shipbroking of Monaco, as well as PDVSA.
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