In 2015, the United States President, Barack Obama, signed and issued a presidential order that stated Venezuela a threat to its national security and ordered sanctions against seven Venezuelan officials. Till now these sanction were only affecting some government officials and some sectors of economy but now, U.S has targeted the only sector that fetches Venezuela massive amount of money, the oil sector. Oil sector is responsible for 90% of Venezuela’s revenue. Petróleos de Venezuela, S.A., the Venezuelan state-owned oil and Natural Gas Company is churned into affair facing measure restrictions for the U.S. All deals with PDVSA are affected and the sanctions will kick off from April 2019.
Trump administration is pressing the sanctions too hard to cut off all financial supports for Venezuelan President, Nicolás Maduro’s government. This step has also driven the U.S to pressurize India to stop buying oil from Venezuela. Along with the sanction on oil the sector, the U.S government has also ordered asset freezes and visa bans targeting top government officials. Juan Guaidó who swore himself as an interim president recently has won the confidence of the U.S and the Canadian government. India has been the second-largest cash-paying customer for the OPEC country’s crude hence this sanction has tensed the Venezuelan government. U.S is opposing Maduro and supporting Guaidó and wants India to do the same. This will give revenue power to Guaidó. Trade tension is on a rise. Imposed sanctions are also affecting the U.S and India trade relations. U.S is also planning on pushing India to cease buying Iranian Oil as well. Basically, the U.S also wants to end preferential trade treatment for India and as it involves exports worth USD 5.6 billion to the U.S.