Tag Archives: Venezuela

Oil prices hit 2019 highs on OPEC cuts and U.S. sanctions

FILE PHOTO: Pumpjacks are seen against the setting sun at the Daqing oil field in Heilongjiang province, China December 7, 2018. REUTERS/Stringe

By Dmitry Zhdannikov

LONDON (Reuters) – Oil prices rose to new 2019 highs on Tuesday, supported by OPEC supply cuts and falling output from Iran and Venezuela because of U.S. sanctions.

Brent crude oil futures were up 16 cents at $67.70 a barrel at 1415 GMT, having earlier risen to a 2019 peak of $68.20, their highest since November 2018.

U.S. West Texas Intermediate (WTI) futures were at $59.17, up 8 cents from their last settlement. They also touched their highest since November at $59.57.

The Organization of the Petroleum Exporting Countries on Monday scrapped its planned meeting in April, effectively extending supply cuts that have been in place since January until its next regular meeting in June.

OPEC and a group of non-affiliated producers including Russia, known as OPEC+, cut supply in 2019 to halt a sharp price drop that began in the second-half of 2018 on booming U.S. production and fears of a global economic slowdown.

Saudi Arabia has signaled that OPEC and its allies could continue to restrain oil output until the end of 2019.

“The OPEC+ deal has brought stability to crude prices and signs of an extension have taken crude higher,” said Alfonso Esparza, senior market analyst at futures brokerage OANDA.

Prices have been further supported by U.S. sanctions against oil exports from Iran and Venezuela, traders said.

Venezuela has suspended its oil exports to India, one of its key export destinations, the Azeri energy ministry said on Tuesday, citing Venezuela’s oil minister.

Because of the tighter supply outlook for the coming months, the Brent forward curve has gone into backwardation since the start of the year, meaning that prices for immediate delivery are more expensive than those for dispatch in the future. May Brent prices were around $1.20 a barrel more expensive than for December delivery.

(GRAPHIC: Brent crude oil forward curves – https://tmsnrt.rs/2FlM7YZ)

Outside OPEC, analysts are watching U.S. crude oil production that has risen by more than 2 million barrels per day (bpd) since early 2018, to about 12 million bpd, making the United States the world’s biggest producer ahead of Russia and Saudi Arabia.

Weekly output and storage data will be published by the Energy Information Administration (EIA) on Wednesday.

Bank of America Merrill Lynch said that economic “risks are skewed to the downside” and it is forecasting global demand growth of 1.2 million bpd year on year in 2019 and 1.15 million bpd in 2020.

The bank said it expects Brent and WTI to average $70 and $59 a barrel respectively in 2019 and $65 and $60 a barrel in 2020.

(Reporting by Henning Gloystein; Editing Joseph Radford and David Goodman)

Four dead, hundreds detained after Venezuela blackout: rights groups

By Shaylim Valderrama

CARACAS (Reuters) – Four people were killed and at least 300 were detained in association with protests and looting that took place during Venezuela’s nationwide blackout, rights groups said on Thursday.

The OPEC nation suffered its worst blackout in history last week following technical problems that the government of President Nicolas Maduro called an act of U.S.-backed sabotage but critics dismissed as the result of incompetence.

Rights groups Provea and the Venezuelan Observatory of Social Conflict said via Twitter that three people were killed in the central state of Lara and one person was killed in the western state of Zulia. The cause of the deaths was unclear.

Alfredo Romero of rights group Foro Penal said at a news conference that 124 people had been detained in protests over public services since the March 8 blackout and that another 200 were arrested over looting.

The Information Ministry did not immediately respond to a request for comment.

Power has returned to many parts of Venezuela, though service has not been fully restored to scattered areas of the capital Caracas and much of the western region.

Venezuela plunged into a deep political crisis in January when Juan Guaido, head of the opposition-controlled congress, invoked the constitution to assume an interim presidency, arguing Maduro’s 2018 re-election was a sham.

That move has put Venezuela at the heart of a geopolitical tussle, with the United States leading most Western nations in recognizing Guaido as the legitimate head of state, while Russia, China and others support Maduro.

Guaido is scheduled to join a meeting of local residents in the El Hatillo district of the capital of Caracas on Thursday.

The blackout that began a week ago left hospitals struggling to keep equipment running, and food rotted in the tropical heat. The nongovernmental organization Doctors for Health said 26 people died in public hospitals during the blackout.

The western state of Zulia suffered intense looting that hit some 350 businesses.

(Reporting by Shaylim Valderrama and Vivian Sequera, Editing by Rosalba O’Brien)

Venezuela congress declares ‘state of alarm’ over blackout

People collect water released through a sewage drain that feeds into the Guaire River, which carries most of the city's wastewater, in Caracas, Venezuela March 11, 2019. REUTERS/Carlos Garcia Rawlins

By Shaylim Valderrama and Anggy Polanco

CARACAS/SAN CRISTOBAL, Venezuela (Reuters) – Venezuela’s opposition-run congress on Monday declared a “state of alarm” over a five-day power blackout that has crippled the OPEC member country’s oil exports and left millions of citizens scrambling to find food and water.

Much of Venezuela remained without power on Monday, although electricity had largely returned to the capital of Caracas following an outage that began on Thursday and which President Nicolas Maduro has called an act of U.S.-backed sabotage.

The outage has added to discontent in a country already suffering from hyperinflation and a political crisis after opposition leader Juan Guaido assumed the interim presidency in January after declaring Maduro’s 2018 re-election a fraud.

Venezuelan citizens living in Bogota protest against Venezuela's President Nicolas Maduro and the continuing power outage in Venezuela, in Bogota, Colombia, March 11, 2019. REUTERS/Carlos Julio Martinez

Venezuelan citizens living in Bogota protest against Venezuela’s President Nicolas Maduro and the continuing power outage in Venezuela, in Bogota, Colombia, March 11, 2019. REUTERS/Carlos Julio Martinez

“Nothing is normal in Venezuela, and we will not allow this tragedy to be considered normal, which is why we need this decree of a state of alarm,” said Guaido, who heads the legislature, during the session on Monday.

The constitution allows the president to declare states of alarm amid catastrophes that “seriously compromise the security of the nation,” but does not explicitly say what practical impact such a declaration would have.

Guaido has been recognized as Venezuela’s legitimate leader by the United States and most Western countries, but Maduro retains control of the armed forces and state institutions, and the backing of Russia and China, among others.

Oil industry sources said that exports from the primary port of Jose had been halted for lack of power, cutting off Venezuela’s primary source of revenue.

During the legislative session, Guaido called for a halt in shipments of oil to Maduro’s political ally Cuba, which has received discounted crude from Venezuela for nearly two decades. The deals have drawn scrutiny from the opposition and its allies abroad as Venezuela’s economic crisis worsened.

“We ask for the international community’s cooperation to make this measure effective so that the oil the Venezuelan people urgently need to attend to this national emergency is not given away,” Guaido said.

U.S. National Security Advisor John Bolton backed the measure, writing on Twitter that, “insurance companies and flag carriers that facilitate these give-away shipments to Cuba are now on notice.” He did not specify any measures the U.S. government may take.

Earlier on Monday, the U.S. Treasury imposed sanctions on a Russian bank over its dealings with Venezuela’s state-owned oil company PDVSA and Secretary of State Mike Pompeo criticized Russia’s Rosneft for buying PDVSA oil.

People collect water released through a sewage drain that feeds into the Guaire River, which carries most of the city's wastewater, in Caracas, Venezuela March 11, 2019. REUTERS/Carlos Garcia Rawlins

People collect water released through a sewage drain that feeds into the Guaire River, which carries most of the city’s wastewater, in Caracas, Venezuela March 11, 2019. REUTERS/Carlos Garcia Rawlins

RESTORATION ‘COMPLEX’

The blackout has left food rotting in refrigerators, hospitals have struggled to keep equipment operating, and people have clustered on the streets of Caracas to pick up patchy telephone signals to reach relatives abroad.

On Monday, Venezuelans seeking water formed lines to fill containers from a sewage pipe.

“This is driving me crazy,” said Naile Gonzalez in Chacaito, a commercial neighborhood of Caracas. “The government doesn’t want to accept that this is their fault because they haven’t carried out any maintenance in years.”

Venezuela’s electrical grid has suffered from years of underinvestment. Restrictions on imports have affected the provision of spare parts, while many skilled technical personnel have fled the country amid an exodus of more than 3 million Venezuelans in recent years.

Winston Cabas, the president of an electrical engineers’ professional association, told reporters that several of the country’s thermoelectric plants were operating at just 20 percent of capacity, in part due to lack of fuel. He said the government was rationing electricity.

The process of restoring service was “complex” and could take between five and six days, he said.

“We once had the best electricity system in the world – the most vigorous, the most robust, the most powerful – and those who now administer the system have destroyed it,” he said.

A source at PDVSA also said the government had decided to ration electricity, in part to supply power to the Jose oil export terminal.

The Information Ministry did not respond to a request for comment.

Experts consulted by Reuters believe the nationwide blackout originated in transmission lines that transport energy from the Guri hydroelectric plant to the Venezuelan south.

The lack of electricity has aggravated a crisis in Venezuelan hospitals, already lacking investment and maintenance in addition to a shortage of medicines.

School and work activities are set to be suspended on Tuesday, the third working day in a row.

(Reporting by Shaylim Valderrama, Vivian Sequera, Anggy Polanco, and Deisy Buitrago; additional reporting by Sarah Marsh in Havana; writing by Daniel Flynn, Brian Ellsworth and Luc Cohen; editing by Grant McCool and Rosalba O’Brien)

Doctors pray for sick as blackout batters Venezuelan hospitals

Venezuelans, including doctors, hold banners that read "Solidarity" as they gather outside a church after a mass during an ongoing blackout in downtown Caracas, Venezuela March 10, 2019. REUTERS/Marco Bello

By Mayela Armas

CARACAS (Reuters) – Maria Rodriguez’s daughter has spent a month in Caracas’s J.M. de los Rios children’s hospital with hydrocephalus, a buildup of spinal fluid in the brain, but staff there have faced an uphill battle treating the girl because of a nationwide power outage.

“It has been horrible since the blackout. My daughter needs treatment that lasts six hours: now she is only getting it when there is power available,” said Rodriguez, 36, who said she is also worried about inadequate water and food in the facility.

Venezuela’s hospitals, already struggling with shortages of supplies and equipment amid an economic meltdown, entered crisis mode on Thursday when the South American nation’s power system went down.

Public hospitals typically have generators to provide back-up electricity in the event of an outage, but doctors consulted by Reuters said they were either damaged or idled for lack of fuel.

Julio Castro of the non-governmental organization Doctors for Health says the blackouts have stretched Venezuelan hospitals to the breaking point. The group says at least 21 people have died in public hospitals during the outage.

“This (blackout) is taking place at a moment when hospitals are operating at limited capacity,” Castro said. “It is not the same as when a hospital is functioning correctly.”

Among the most prone to electricity problems in hospitals are newborns, he said. About 10 percent of the 1,500 children born each day in Venezuela require incubators or other such equipment that cannot function without steady power.

Even before the blackouts, the state of the healthcare system was dire. In a report last year, Doctors for Health said doctors in more than half of Venezuela’s hospitals had been attacked by people who were angry the decaying medical system could not do more for their relatives.

Not having power means hospitals struggle to obtain water, fueling sanitation problems that are aggravated by shortages of cleaning products. Constant fluctuations in electricity also risk damaging the limited equipment that hospitals have.

Socialist President Nicolas Maduro says last week’s blackout was the result of U.S.-backed sabotage, and Venezuelan health authorities say they have kept services intact despite the circumstances.

“The contingency plan has worked, problems have been corrected and patients have been transferred (to other hospitals) when they have requested it,” Health Minister Carlos Alvarado told state television on Sunday.

DOCTORS’ PRAYERS

A group of doctors on Sunday held a mass to pray for the sick, and later walked to the J.M. de los Rios hospital to seek more details about the situation there.

The doors were locked even though they arrived during visiting hours. Women shouted from the windows that they needed help and that there was no food, but police at the entrance blocked their way, according to a Reuters witness.

Several members of a police special forces group called FAES were stationed inside the hospital, according to witnesses.

Within hours, hospital director Natalia Martinho appeared on state television to assure the public everything was fine.

    ”(The) children are in stable condition. The response to this contingency has been a great achievement,” she said. “We have given food to children and their mothers.”

    But for the relatives of patients seeking hospital treatment, official reassurances are little consolation.

Maria Torres, 46, waited anxiously on Sunday outside Caracas’ El Llanito hospital, where her brother was admitted for injuries sustained in a car accident. She worried for his well-being due to the lack of water, medical supplies and electricity.

“This is a nightmare,” she said.

(Reporting by Mayela Armas; Editing by Vivian Sequera, Brian Ellsworth and Paul Simao)

Venezuelans scramble for food and water as oil exports hit by blackout

A security force member stands next to detainees on a street after looting during an ongoing blackout in Caracas, Venezuela March 10, 2019. REUTERS/Carlos Garcia Rawlins

By Vivian Sequera and Anggy Polanco

CARACAS/SAN CRISTOBAL, Venezuela (Reuters) – Much of Venezuela, including parts of the capital Caracas, remained without power on Monday for a fifth day, crimping vital oil exports and leaving people struggling to obtain water and food.

President Nicolas Maduro, who has blamed the unprecedented blackout on sabotage by the United States at Venezuela’s Guri hydroelectric dam, again ordered the suspension of classes and the working day, as he had on Friday.

FILE PHOTO: People queue to try to buy potable water during a blackout in Puerto Ordaz, Venezuela March 10, 2019. REUTERS/William Urdaneta NO RESALES. NO ARCHIVES.

FILE PHOTO: People queue to try to buy potable water during a blackout in Puerto Ordaz, Venezuela March 10, 2019. REUTERS/William Urdaneta NO RESALES. NO ARCHIVES.

Sources in the energy sector, OPEC member Venezuela’s main source of foreign earnings and a vital generator of revenue for Maduro’s government, said that exports from the main oil terminal of Jose had been halted by the blackouts.

The opposition-controlled congress called an emergency session to discuss the power cuts, blaming negligence by Maduro’s socialist government.

Maduro’s rule is being challenged by Congress leader Juan Guaido, who in January invoked the constitution to assume the presidency after declaring Maduro’s 2018 re-election a fraud.

Guaido has been recognized as Venezuela’s legitimate leader by the United States and most Western countries, but Maduro retains control of the armed forces and state institutions.

The blackout, which began Thursday afternoon, has heightened frustration among Venezuelans already suffering widespread food and medicine shortages, as the once-prosperous nation’s economy suffers a hyperinflationary collapse.

Food has rotted in refrigerators, hospitals have struggled to keep equipment operating, and people have clustered on the streets of Caracas to pick up patchy telephone signals to reach relatives abroad. On Monday, people formed lines to fill containers with water from the streams cascading down the mountain overlooking Caracas.

“This is driving me crazy,” said Naile Gonzalez in Chacaito, a commercial neighborhood of Caracas. “The government doesn’t want to accept that this is their fault because they haven’t carried out any maintenance in years.”

Experts consulted by Reuters believe the nationwide blackout originated in transmission lines that transport energy from the Guri hydroelectric plant to the Venezuelan south.

Venezuela’s electricity network has suffered from years of underinvestment and lack of maintenance. Restrictions on imports have affected the provision of spare parts, while many skilled technical personnel have fled the country amid an exodus of more than three million Venezuelans in three years.

In the early hours of Monday morning, a power substation in southeastern Caracas exploded, cutting off supply to nearby areas, according to Reuters witnesses.

State television on Monday confirmed the incident, which it said left no injuries. It said the cause was being investigated but provided no further details.

Other regions, such as the Andean city of San Cristobal near the border with Colombia, were without electricity on Monday, a Reuters witness said.

The lack of electricity has aggravated a crisis in Venezuelan hospitals, also lacking investment and maintenance in addition to the shortage of medicines.

Dr Julio Castro, of the non-governmental group Doctors for Health, said in a Twitter message on Sunday night that 21 people have died in public hospitals since the start of the blackout.

(Reporting by Vivian Sequera and Anggy Polanco; Writing by Daniel Flynn; Editing by Brian Ellsworth and Grant McCool)

Venezuela grinds to a halt as blackout drags into a second day

A general view of a street during a blackout in Caracas, Venezuela March 8, 2019. REUTERS/Manaure Quintero

By Vivian Sequera and Brian Ellsworth

CARACAS (Reuters) – Venezuela shut schools and suspended the workday on Friday as the worst blackout in decades paralyzed most of the troubled nation for a second day, spurring outrage among citizens already suffering from hyperinflation and a crippling recession.

Power went out late on Thursday afternoon due to a problem at Venezuela’s main hydroelectric plant, the government said, calling the event an act of “sabotage” by ideological adversaries.

“We will once again defeat this electrical sabotage. We are going to recover this important service for the population,” Vice President Delcy Rodriguez said in comments broadcast over state television.

While blackouts are routine in many Venezuelan provinces, particularly along the western border with Colombia, nationwide power outages under the ruling Socialist Party have never extended for more than a day.

“This is a severe problem. It is not just any blackout,” said Luis Martinez, a 53-year-old construction worker walking to work in eastern Caracas.

Reuters witnesses could only confirm that lights were on in the southern city of Puerto Ordaz. It was not immediately clear if the power shortages affected oil operations in the OPEC nation.

State oil company PDVSA did not immediately respond to a request for comment.

In Caracas, scores of people walked through the streets early in the morning due to the closure of the metro, while others took the few buses that were circulating. Many did not realize the workday was suspended because they could not watch television or listen to the news.

SABOTAGE

President Nicolas Maduro always attributes major power outages to sabotage by opposition adversaries.

Maduro, who was re-elected last year in a vote widely viewed as fraudulent, blames the crisis on a U.S.-backed sabotage campaign.

His critics say his government has mismanaged the power sector since late socialist leader Hugo Chavez nationalized it in 2007 while setting aside billions of dollars for power projects that were swallowed by corruption.

Opposition leader Juan Guaido slammed the government for bungling the country’s energy supply and dismissed sabotage accusations.

“Sabotage is stealing money from Venezuelans. Sabotage is burning food and medicine. Sabotage is stealing elections,” he wrote via Twitter, referring to humanitarian aid trucks that went up in flames last month when opposition leaders attempted to bring relief supplies across the Colombian border.

More than 3 million people are believed to have fled Venezuela amid a deep economic crisis marked by shortages of food and medicine and hyperinflation.

Venezuela suffered major blackouts in 2008 and 2013 that affected significant parts of the country, but both were resolved in less than six hours.

Maduro’s televised speeches have on several occasions been interrupted by power outages, spurring chuckles from opposition critics.

Local power outages continue to be chronic, particularly in the sweltering western state of Zulia where residents complain of days without power or with limited electricity and voltage fluctuations that damage appliances.

Venezuela is mired in a major political crisis, with more than 40 foreign governments disavowing Maduro in favor of Guaido. The United States in January levied crippling oil industry sanctions meant to starve Maduro’s government of revenue.

Maduro says Guaido is a “puppet” of Washington and dismisses his claim to the presidency as an effort by the Trump administration to control Venezuela’s oil wealth.

(Reporting by Vivian Sequera and Brian Ellsworth,; Editing by Daniel Flynn, Chizu Nomiyama and Jeffrey Benkoe)

Venezuela’s Guaido risks arrest as he returns home to defy Maduro

Venezuelan opposition leader Juan Guaido, who many nations have recognized as the country's rightful interim ruler, waves next to his wife Fabiana Rosales while leaving a hotel in Salinas, Ecuador March 3, 2019. REUTERS/Daniel Tapia

By Angus Berwick

CARACAS (Reuters) – Venezuelan opposition leader Juan Guaido plans to risk arrest by returning home on Monday, after he ignored a court-imposed travel ban and toured Latin American countries to boost support for his campaign to oust President Nicolas Maduro.

Guaido’s return, details of which his team have kept under wraps, could become the next flashpoint in his duel with Maduro as he seeks to keep up momentum and spur his international backers to further isolate the socialist government.

His arrest could allow the opposition to highlight how the Maduro administration represses political foes and prompt the United States to impose even harsher sanctions. But it could also strip the opposition of a public figurehead who has brought unity after years of infighting.

Guaido, who is recognized as Venezuela’s legitimate head of state by most Western countries, said on Sunday he would undertake the “historic challenge” of returning in time to lead protests on Monday and Tuesday during the Carnival holiday period, an unusual time for demonstrations.

By 10.30 a.m. local time, Guaido still had not appeared in Caracas, though in a recorded message posted on his Twitter account he said he was en route to his home and he would be with “the men and women I most admire” in a few hours.

“Upon my arrival, whatever path the dictator takes, we are going to continue,” he said.

Guaido secretly left Venezuela for Colombia, in violation of a Supreme Court order, to coordinate efforts there on Feb. 23 to send humanitarian aid into Venezuela to alleviate widespread shortages of food and medicine.

But troops loyal to Maduro blocked convoys of aid trucks sent from Colombia and Brazil, leading to clashes that killed at least six people along the Brazilian border, rights groups say.

From Colombia, he then traveled to Argentina, Brazil, Ecuador and Paraguay to shore up Latin American support for a transition government that would precede free and fair elections.

On Sunday, he departed by plane from the Ecuadorean coastal town of Salinas but has not appeared publicly since, beyond a Twitter broadcast that evening from an undisclosed location.

To arrive in Caracas by Monday morning, he could take commercial flights from Bogota, Panama City or Miami. A Reuters reporter on the one morning flight from Bogota said he was not on it.

Maduro, who has called Guaido a coup-mongering U.S. puppet and denies there is a humanitarian crisis in Venezuela, has said his arrest depends on the justice system.

“He can’t just come and go. He will have to face justice, and justice prohibited him from leaving the country,” he told ABC News last week.

The United States has warned Maduro of the consequences of arresting Guaido and the Treasury imposed new sanctions on Friday targeting Venezuelan military officials.

“Any threats or acts against his safe return will be met with a strong and significant response from the United States and the international community,” U.S. National Security Adviser John Bolton said on Twitter on Sunday.

After the military blocked the aid convoys, Guaido proposed that “all options be kept open” to topple Maduro, but foreign military intervention is seen as unlikely and his international backers are instead using a mix of sanctions and diplomacy.

The government has jailed dozens of opposition leaders and activists for seeking to overthrow Maduro through violent street demonstrations in 2014 and 2017, including Guaido’s mentor, Leopoldo Lopez, who remains under house arrest.

(Reporting by Angus Berwick; Additional reporting by Vivian Sequera in Caracas, from Marco Bello in Bogota and Matt Spetalnick in Washington; Editing by Clarence Fernandez and Susan Thomas)

Warding off hunger, Venezuelans find meals in garbage bins

A man sits on a rubbish container in Caracas, Venezuela February 26, 2019. Picture taken February 26, 2019. REUTERS/Carlos Jasso

By Shaylim Valderrama

CARACAS (Reuters) – Tony, a 36-year old security guard, rummages through the garbage bins of a wealthy district in Caracas on his days off work, scavenging for food as Venezuela’s economic meltdown has left even the employed struggling to find enough to eat.

“I smell it and if it smells good, then I take it home,” said Tony, who declined to disclose his last name because he does not want his wife and four children to know how he has been putting food on their table for more than a year.

He said he typically finds scraps of meat, cheese and pieces of vegetables on his garbage runs. “I wash it with vinegar, a lot of water, and I add onion and sauce.

Scenes of Venezuelans picking through garbage in a search for something to eat has for years been a symbol of the nation’s economic meltdown, which has been marked by widespread shortages of food and medicine as well as hyperinflation.

But the problem received renewed attention this week after the South American nation’s socialist government deported American journalist Jorge Ramos, who showed a video of people eating garbage while he interviewed President Nicolas Maduro.

Maduro, who has been in power since 2013 and was re-elected last year in a vote widely viewed as fraudulent, has previously dismissed journalists’ questions about garbage consumption, saying they were part of a U.S.-backed propaganda campaign against his government.

He denies there is a humanitarian crisis in his country and says foreign governments are seeking to undermine him.

Venezuela’s Information Ministry did not immediately reply to a request for comment.

It is not uncommon for poor and indigent residents of the world’s wealthiest nations to root through dumpsters. But it is rare in those nations for people with full-time jobs to rely on garbage to sustain their families.

Prices in Venezuela are rising more than 2 million percent per year, and the country’s minimum wage, worth around $6 per month, buys little more than a tray of eggs.

Many Venezuelans rely on remittances from relatives who have joined an exodus of an estimated 3.4 million people since 2015, according to the United Nations, while others depend on government food handouts.

Opposition leader Juan Guaido, who in January declared himself to be Venezuela’s interim president, led an effort last week to bring humanitarian aid into the country, but troops blocked trucks from getting in.

Most Western nations including the United States have recognized Guaido as Venezuela’s legitimate president.

“I’ve had to teach my children to eat everything,” said Estefani Quintero, 35, a mother of seven who travels two hours to Caracas from a distant suburb to trawl garbage bags. “Of course it’s the government that’s at fault for this. We used to eat breakfast lunch and dinner, we even threw away food.”

(Reporting by Shaylim Valderrama; Writing by Sarah Marsh and Brian Ellsworth; Editing by Paul Simao)

U.S. imposes more sanctions on Venezuela amid humanitarian aid fight

A Venezuelan flag waves above the corporate logo of Banesco bank at one of their office complexes in Caracas, Venezuela May 2, 2018. REUTERS/Marco Bello

WASHINGTON (Reuters) – The United States imposed fresh sanctions on Venezuela on Friday, targeting six Venezuelan government officials tied to President Nicolas Maduro, in its latest move to squeeze the embattled leader.

In a statement, the U.S. Department of Treasury cited the battle over humanitarian assistance and blamed the six current or former security officials, who it said controlled groups that blocked aid from reaching people in the Latin American country.

“We are sanctioning members of Maduro’s security forces in response to the reprehensible violence, tragic deaths, and unconscionable torching of food and medicine destined for sick and starving Venezuelans,” U.S. Treasury Secretary Steven Mnuchin said after deadly violence blocked humanitarian aid from reaching Venezuela over the weekend.

The United States “will continue to target Maduro loyalists prolonging the suffering of the victims of this man-made humanitarian crisis,” Mnuchin added.

Friday’s action is the second set of sanctions this week, after the United States on Monday targeted four Venezuelan state governors allied with Maduro. Washington on Monday also called on allies to freeze the assets of state-owned oil company PDVSA.

U.S. sanctions block any assets the individuals control in the United States and bars U.S. entities from doing any business or financial transactions with them.

(Reporting by Makini Brice and Susan Heavey; Editing by Steve Orlofsky)

Exclusive: Venezuela removed 8 tons of central bank gold last week – legislator

FILE PHOTO: Venezuela's President Nicolas Maduro touches a gold bar as he speaks during a meeting with the ministers responsible for the economic sector at Miraflores Palace in Caracas, Venezuela March 22, 2018. REUTERS/Marco Bello/File Photo

By Corina Pons and Mayela Armas

CARACAS (Reuters) – At least 8 tons of gold were removed from the Venezuelan central bank’s vaults last week, an opposition legislator and three government sources told Reuters, in the latest sign of President Nicolas Maduro’s desperation to raise hard currency amid tightening sanctions.

The gold was removed in government vehicles between Wednesday and Friday last week when there were no regular security guards present at the bank, Legislator Angel Alvarado and the three government sources said.

“They plan to sell it abroad illegally,” Alvarado said in an interview.

The central bank did not respond to requests for comment.

Alvarado and the government sources, who spoke on condition of anonymity, did not say where the central bank was sending the gold. They said the operation took place while central bank head Calixto Ortega was abroad on a trip.

In 2018, 23 tons of mined gold were transported from Venezuela to Istanbul by plane, according to sources and Turkish government data.

The central bank bought part of this gold from primitive gold-mining camps in the south of Venezuela and exported it to Turkey and other countries to finance the purchase of basic food supplies, given widespread shortages, according to more than 30 people with knowledge of the trade.

Some 20 tons of monetary gold were also removed from the central bank’s vaults in 2018, according to the bank’s data, leaving 140 tonnes remaining, the lowest level in 75 years.

Abu Dhabi investment firm Noor Capital said on Feb. 1 that it bought 3 tons of gold on Jan. 21 from the Venezuelan central bank and would not buy more until Venezuela’s situation stabilized. Noor Capital said its purchase was in accordance with “international standards and laws in place” as of that date.

Maduro’s government has been seeking to repatriate some 31 tons of gold in the Bank of England’s vaults on fears it could be caught up in international sanctions on the country.

“As you would expect, the Bank does not comment on individual customer relationships,” the Bank of England wrote in response to a request for comment. “In all its operations, the Bank observes the highest standards of risk management and abides by all relevant legislation.”

Venezuelan Foreign Minister Jorge Arreaza said on Wednesday, during a United Nations meeting in Geneva, that the Bank of England had blocked the government’s assets.

Maduro’s government has resorted to selling off gold after falling oil production, the country’s wider economic collapse and mounting sanctions hit public income and made it hard for the country to access credit.

The United States, which is backing an attempt by opposition leader Juan Guaido to force Maduro to step down and call new elections, has warned bankers and traders not to deal in Venezuelan gold.

(Reporting by Corina Pons and Mayela Armas; additional reporting by William Schomberg in London, Writing by Angus Berwick; Editing by Christian Plumb, Leslie Adler and Grant McCool)