President Donald Trump announced Friday that his administration would impose new economic sanctions on the regime of President Nicolás Maduro in response to what it characterized as attacks on Venezuela's democratic institutions.
"It also prohibits dealings in certain existing bonds owned by the Venezuelan public sector, as well as dividend payments to the government of Venezuela", it said.
Del Pino, who has been with PDVSA for 30 years, forged joint ventures geared toward producing heavy oil in the Orinoco belt and offshore gas in recent years, but these projects have fallen short of full implementation.
The United States thus attacks one of the main channels of financing of the Government of Maduro.
But many US and other global investors holding Venezuelan debt anxious that they also would have been harmed by any punitive measures that prevented the trading of these bonds.
These sanctions, in other words, are not an oil embargo.
"Venezuela is not very far away". They also exempt transactions with PDVSA's USA subsidiary, Citgo.
"These measures are carefully calibrated to deny the Maduro dictatorship a critical source of financing to maintain its illegitimate rule", the White House said.
Most trade between the two countries could continue to be financed as well as humanitarian assistance.
President Donald Trump sanctioned Venezuela on Friday after a democractic and humanitarian crisis developed in the nation under President Nicolas Maduro, seen here August 22.
"We will not stand by as Venezuela crumbles", the White House said in a statement.
"The United States reiterated their appeal to the Venezuela to restore democracy, hold free and fair elections, to release immediately and without conditions all political prisoners and end the repression of the venezuelan people", adds the executive american.
The sanctions are "uncivilised politics" and Venezuela is "a victim of fake news" that exaggerates the extent of its economic crisis, Foreign Minister Jorge Arreaza said at the United Nations in NY.
While the executive order protects holders of many existing Venezuelan government and PDVSA bonds, it will make the refinancing of PDVSA's hefty debt burden hard and could further push the country toward financing from Russian Federation and China.
"Maduro's economic mismanagement and rampant plundering of his nation's assets have taken Venezuela ever closer to default", the statement said.