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U.S. Imposes Sanctions on PDVSA over Iran

The United States announced new sanctions on Tuesday against Venezuela’s state oil company PDVSA and six other foreign oil and shipping firms that trade with Iran. Deputy Secretary of State James Steinberg said that sanctioned companies “engaged in activities related to the supply of refined petroleum products to Iran” in breach of an existing U.S. ban. PDVSA delivered at least two cargoes of refined petroleum products worth about $50 million to Iran between December 2010 and March 2011.

Sanctioned companies will not be allowed to access U.S. government contracts, import/export financing and export licenses for sensitive technology, but do not affect the companies’ sale of oil to the U.S. or the activities of its subsidiaries. According to the State Department, the sanctions are aimed at tightening Iran’s gasoline supplies, which will undoubtedly have a ripple effect on the energy sector in the Islamic Republic.

The other six sanctioned companies include Tanker Pacific of Singapore, Ofer Brothers Group of Israel, Associated Shipbroking of Monaco, Petrochemical Commercial Company International of Jersey and Iran, the Royal Oyster Group of the United Arab Emirates, and Speedy Ship of the United Arab Emirates and Iran.

The State Department announced a separate set of sanctions, also on Tuesday, directed at 16 companies and individuals in China, Iran, North Korea, and Syria involved in nuclear proliferation activities and development of weapons of mass destruction.

Any opinions expressed in this piece do not necessarily reflect those of Americas Quarterly or its publishers.
Tags: Venezuela, petroleum, PDVSA, U.S. Sanctions, Nuclear Proliferation, Islamic Republic, North Korea

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