Venezuela Faces More Economic Struggles From US Sanctions

Venezuela Faces More Economic Struggles From US Sanctions

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The elections took place in Venezuela, on Sunday, July 30, 2017, for a constituent assembly to rewrite the constitution. As early as Monday, President Donald Trump was considering enforcing economic sanctions on Venezuela’s oil industry for allowing this election to take place.

Sanctions could include the ban of trades and sales of U.S. crude and refined oil products. Ninety-five percent of Venezuela’s export revenue currently comes from oil. This economic action could cripple the already struggling economy, and possibly worsen the shortage of food if Venezuela is unable to import food.

The South American country does not grow much food domestically and this can be risky but seems to be worth it to the protesters. One protester, who identified only as Victor to the public, explained:

The sanctions that will come from the United States — I’m not looking forward to them because that afflicts us as people, but I want it because I know it can create enough pressure on the government.

The sanctions delivered by the U.S. push for Venezuelans to force out their government. President Trump threatened Venezuelan President Nicolás Maduro with, “strong and swift economic actions” if he continued with his plan to rewrite the country’s constitution.

Maduro disregarded Trump in his response on Tuesday, “Here in Venezuela, Venezuelans give the orders not Trump.” The statement clarified Maduro’s commitment to the election of the constituent assembly.

White House officials agree, “all options are on the table,” when it comes to penalizing Manduro’s government plans. One senior White House official later informed reporters options were being discussed and promised that the actions taken after July 30 will be “strong, swift, and deliberate.”

Many in the U.S. and Venezuela do not believe Maduro does not want a civil war, as he claims. His security forces fired tear gas at the youth protesting in the blocked marches against his constituent assembly. Even Florida Representative, Ileana Ros-Lehtinen added, “I don’t think we should buy oil from Maduro, we shouldn’t buy oil from the thugs around the world, and that sends a strong signal.”

These oil-focused sanctions can have negative effects on U.S. refineries. This will increase of cost in order to buy and have oil shipped from other suppliers who might be weeks away opposed to the country ruled by Maduro, which is only three days away.

The South American country already has difficulty obtaining goods, such as much needed medicine and food. Eliminating all exports to the U.S. can increase this struggle. The sanctions could increase the ongoing humanitarian crisis in the country, maybe even causing an increase in the economic hardship.

Written by Brielle R. Buford
Edited by Jeanette Smith

Sources:

FOX NEWS: State Department slams Venezuela ‘sham’ elections
Newsweek: AFTER WEEKS OF UNREST IN VENEZUELA, PRESIDENT MADURO EYES CHANGES TO CONSTITUTION
KITV4: What next for Venezuela? Crisis and isolation
BUSINESS INSIDER: The US is preparing to hit Venezuela with new sanctions after election
BUSINESS INSIDER: ‘All options are on the table’ for Trump to go after Venezuela, but the side effects could be severe
The Washington Post: Trump has sanctioned Venezuela’s president. Let’s hope he leaves the people alone.
CNBC: Venezuela energy sanctions could still be coming. Here’s how they would affect the market

Featured and Top Image Courtesy of andresAzp’s Flickr Page – Creative Commons License

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