Revocation of License for Venezuelan Gold Company
The Office of Foreign Assets Control (OFAC) has taken action to revoke the license of CVG Compania General de Mineria de Venezuela CA (Minerven), the state-owned gold company in Venezuela. This license allowed Minerven to participate in gold transactions in international markets. The sanctions were initially eased in October, but they will be applied again on February 13 due to the Venezuelan government’s failure to meet certain expectations set by the U.S. The sanctions on Minerven are just the beginning, as more sanctions, including those on oil and gas, are set to be reimposed in April if there is no change in the decisions made by the Venezuelan Supreme Tribunal.
Rejection of U.S. Behavior by Venezuelan Government
The Biden administration’s actions have been met with resistance from the Venezuelan government. The leader of the National Assembly, Jorge Rodriguez, has called for the acceleration of the re-enactment of sanctions related to oil, gas, and gold. The Venezuelan government has also been engaged in a battle to regain control of approximately $2 billion in gold held in the U.K. The situation remains tense as both sides continue to respond to the actions and demands of the other. It is uncertain how the situation will develop in the coming months.
Hot Take: Venezuelan Gold Company Faces Sanctions Again
The Office of Foreign Assets Control’s decision to revoke the license of Minerven, the Venezuela state-owned gold company, for its participation in international gold transactions is a significant move. This action by the U.S. government reflects its dissatisfaction with the Venezuelan government’s failure to meet certain expectations. The reimposition of sanctions on Minerven and the potential for further sanctions on the oil and gas sectors indicate the ongoing tensions between the two countries. The future remains uncertain, and it will be interesting to see how the Venezuelan government responds to these developments.
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