President Donald Trump imposed additional sanctions on Venezuela on Monday shortly after socialist dictator Nicolas Maduro won an election that senior American administration officials called a sham.
Trump signed an executive order aimed at blocking Maduro’s latest scheme at stealing Venezuela’s wealth, namely the sale of accounts receivable held by Venezuela’s government.
A senior American official described the practice as a way of selling the nation’s future, whereas an investor can buy money owed to the Venezuelan government in the future for pennies on the dollar today.
The executive order lists a number of reasons for imposing the latest round of sanctions, including “endemic economic mismanagement and public corruption at the expense of the Venezuelan people and their prosperity, and ongoing repression of the political opposition; attempts to undermine democratic order by holding snap elections that are neither free nor fair; and the regime’s responsibility for the deepening humanitarian and public health crisis in Venezuela.”
The executive order specifically prohibits any U.S. citizen from buying any debt owed to the government of Venezuela. Americans are also prohibited from accepting Venezuela government’s debt as collateral for loans and other types of financing. Similar restrictions apply to entities in which the socialist regime owns a majority stake.
The Lima Group nations also pledged to reduce diplomatic relations with Venezuela and said that they will summon their ambassadors from Venezuela to express their protest. In a background call with reporters, senior American officials praised the Lima Group nations for the statement.
Monday’s sanctions are the third wave of actions aimed at the socialist regime taken by the Trump administration.
Most recently, the United States prohibited all transactions linked to the oil-backed Venezuelan cryptocurrency called “petro.” On Monday, Senior American officials decried the petro as a Ponzi scheme to enrich the ruling socialist elite. Prior to the ban on petro, the United States also prohibited certain other financial transactions.
All of the actions are aimed at thwarting a rampant kleptocracy by Maduro and the ruling elites. Senior American officials described the current situation in the failing state as a “firesale” with the ruling elite selling “anything that isn’t bolted down,” while the vast majority of Venezuela’s citizen live in abject poverty.
According to data from the Maduro-controlled National Electoral Commission, 5.8 million Venezuelans voted to re-elect the socialist dictator for another six-year term.
A total of 8.6 million voted in the election out of the 20 million who were called to the polls, marking the lowest turnout rate in the nation’s history. But even that number has been inflated, according to observers in opposing campaigns.
The United States and the Lima Group would not recognize the election as legitimate even if there was no fraud at the ballot. Prior to the election, Maduro has banished major opposition parties, imprisoned his opponents, and destroyed press freedoms while using hunger as a tool to control the starving nation.
Senior American officials say that Maduro’s operatives had set up tables near voting sites and offered money and food for votes, a practice Maduro used in prior elections. Neighborhoods which didn’t vote for Maduro in the past were punished and cut off from funds and aid, the officials said.
The American sanctions are aimed at changing Maduro’s behavior, senior officials said. The ultimate goal is to force the socialist regime to hold free and fair elections, allow humanitarian aid to enter the country, release political prisoners, and recognize the National Assembly.