U.S. Imposes New Sanctions on Russia

President Putin and President Maduro met in 2015 to solidify Russia’s support of Maduro. (en.kremlin.ru)

The United States announced that it would be imposing additional economic sanctions against Russia due to Moscow’s continued support for Venezuelan President Nicolás Maduro on February 18. The sanctions are not expected to have a significant impact on global markets, however, and oil prices fell only half a percent.

The sanctions specifically target a subsidiary of Russia’s Rosneft Oil Company, called Rosneft Trading SA, which the U.S. government has deemed a supporter of Maduro’s regime by way of selling gasoline to Venezuela. Due to the quickly deteriorating economic situation in Venezuela, most of the refineries there have ceased operations or broken down, forcing the country to import gasoline.

Moscow has provided continuous backing for Maduro despite many global superpowers, including the U.S., declaring their support for opposition leader Juan Guaidó last year. While the U.S. has already imposed sanctions on Venezuela for over a decade, the Trump administration has recently increased them significantly as a result of Maduro’s authoritarian leadership. These most recent sanctions, however, are the first sanctions to be levied against a nation other than Venezuela over support for Maduro.

Currently, the implications of the sanctions depend on whether Rosneft Trading SA decides to continue its partnership with Venezuela. The Russian government has responded with calls of violation of international law. However, there is still uncertainty regarding the credibility of claims that the sanctions will not affect Russia’s relationship with Venezuela.

If business between Russia and Venezuela deteriorates as a result of the sanctions, Venezuelan economists such as Francisco Rodriguez fear that Maduro’s regime will be able to further consolidate power because of the economic damage. As of now, it does not seem as though the United States nor Russia will back down on their positions regarding the current Venezuelan situation.