US sanctions in Venezuela: "They are a blow to government funding" – 01/29/2019

The government of Nicolás Maduro he suffered a devastating blow with the oil sanctions that the United States announced Monday, since will seriously affect your finances, according to Venezuelan economists interviewed by Clarin. And this, without a doubt, will end hit the pockets impoverished Venezuelans.

Washington raised tension Monday with sanctions on the the national oil company PDVSA, the main source of revenue for the Caribbean country, and has determined that Citgo, a subsidiary in the United States, continues to operate, provided that its revenues are deposited in a blocked account.

Clarin Bulletins

What happened today? We tell you the most important news of the day and what will happen tomorrow when you get up

Monday to Friday afternoon.

"This measure aims to prevent further looting and can use these funds once the usurpation has ended, let's realize the transitional government," justified the speaker of the parliament of the opposition , Juan Guaidó, and his "president in charge".

The director of Ecobadítica, the economist Asdrúbal Oliveros, affirmed Clarin that sanctions have a "strong impact" and a "broad reach". Basically, he says, "It is prohibited to export PDVSA crude oil to the United States.., the export and re-export of US diluent to Venezuela is prohibited and the trade PDVSA bonds ".

"The United States is our largest customer, in terms of dollar earnings from oil exports, practically between 80 and 90 percent The cash flow available for the Maduro government comes from its oil sales in the United States. And with these restrictions, obviously Maduro will have to find another customer to sell his oil to"Said Oliveros.

Look also

But that, says the economist, it is not so easy. "The management of oil is not so simple, there are elements of technological adaptation, transportation, storage, it can not be solved overnight. It's a blow to the Venezuelan government's funding. "

Tamara Herrera, director of Síntesis Financiera, also stressed that the impact "is very significant" because "a quasi-gel could occur". In addition, he explains that he "finds the government in a very vulnerable financial situation".

The Maduro government, Herrera points out, "has wasted a tremendous amount of external resources and is now even more dependent on the flows generated by a very small oil business, whose revenues could be beyond the reach of PDVSA."

Look also

The specialist emphasizes that "the oil economy is too weak and has no competitiveness to provide foreign currency to the country". That's why Maduro turns "At the mining arch, where a voracious extraction took place in recent years ".

These sanctions hit Venezuela at a critical juncture, as there has been a very significant reduction in income over the last year. The Oliveros data are strong in this sense.

"In the last positive year for Venezuela, in 2012, oil exports generated revenues of about $ 50 million.Last year, latest data available, for 27 000 million. And this year, it is estimated that they will only be 14,000 million. "

This black perspective began to affect the dollar, which noted Monday its rating at 3,200 bolivars. A spiral effect that will end up being another blow for the Venezuelans.