The Treasury Department has issued a new wave of sanctions against Venezuela in an increasing effort to put pressure on dictator Nicolas Maduro’s regime and promote opposition leader Juan Guaido’s claim to power.
Treasury’s Office of Foreign Assets Control confirmed Tuesday that the United States is enforcing new sanctions on the South American country’s gold mining company, Minerven, which the Trump administration has identified as an important financial lifeline for the Maduro regime.
With Venezuela’s currency plummeting and the economy engulfed in rampant inflation, the administration says Maduro and his cronies are enriching themselves by participating in a black market exploiting resources, including the production of crude oil and the mining of precious metals. They have overtaken all aspects of gold mining in Venezuela, extracting the metal from the nation’s southern provinces and melting it into bars to be prepared and sent to the central bank in Caracas. By paying miners in the local currency, the regime is able to extract the gold cheaply and convert it to foreign currencies, which are used among Maduro and his henchmen.
“Treasury is targeting gold processor Minerven and its President for propping up the inner circle of the corrupt Maduro regime. We will aggressively pursue those involved with Maduro’s reckless illicit gold trade which is contributing to this financial, humanitarian, and environmental crisis,” Treasury Secretary Steven Mnuchin said in a statement Tuesday.
The White House is also concerned about the environmental impact of the mining industry, saying that the Maduro regime has little to no regard for the damage its participation in the black market is causing surrounding communities.
“The illegitimate Maduro regime is pillaging the wealth of Venezuela while imperiling indigenous people by encroaching on protected areas and causing deforestation and habitat loss. Maduro’s scheme to usurp the National Assembly’s authority and strip Venezuela of natural resources has exposed local communities to dangerous toxins,” said Mnuchin.
The Trump administration announced this month a new wave of sanctions against Venezuela’s oil industry, as well as international banking systems that set up contracts with Venezuelan state-run oil companies.
[Related: Venezuela to move oil HQ to Moscow in attempt to circumvent sanctions]
