Caracas
will do everything possible to minimize effects of US sanctions
against Venezuelan energy giant PDVSA on the global oil market, the
technical adviser for the state-run firm, Ronny Romero, said.
“Yes,
we are facing new illegal sanctions from the US. We were exporting
about 500,000 bpd to the US. PDVSA will redirect exports to other
customers in Europe and Asia,” he told Sputnik.
Romero,
who is Venezuela’s National Representative to OPEC, explained that
European and Asian customers should not be afraid to buy oil from the
country because Washington’s sanctions apply only to US entities.
“Anyway,
Russia and China don’t care about US sanctions,” he said,
adding that Venezuela would “do our best in order to not affect
the market.”
Washington
imposed sanctions against PDVSA last week, seizing $7 billion in
assets. US National Security Advisor John Bolton said that in
addition to that, the sanctions will affect $11 billion worth of the
company’s exports over the coming year.
The US
buys a significant amount of Venezuelan oil, according to Treasury
Secretary Steven Mnuchin, who said the sanctions would have a “modest
effect” on American refineries.
Venezuelan
President Nicolas Maduro criticized US sanctions on PDVSA, saying the
restrictions were tantamount to illegal seizure.
Venezuela
is home to the world’s largest oil reserves. Oil sales account for
98 percent of export earnings and as much as 50 percent of GDP.
Washington is betting that the sanctions-hit PDVSA will be unable to
export enough oil, causing President Maduro’s government to quickly
run out of cash.
At the
same time, the US is trying to force international recognition of the
chairman of the National Assembly Juan Guaido as the country’s new
president.
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