US officials said that the US Government will sanction PDVSA and seven other firms for dealing with Iran. Companies and individuals from Venezuela, Israel, China, Syria and Belarus will be sanctioned for either commercial or nuclear violations. PDVSA sold gasoline to Iran in violation of the sanctions. In January a group of US Congressman wrote to PDVSA’s President Rafael Ramirez warning that this could happen if PDVSA continued selling gasoline to Iran.
Sanctions may include the closing of bank accounts and access to the US financial system and banning PDVSA from contracts in the US. It will not stop PDVSA from selling oil to the US, but it will not be able to get financing for import/exports.
Not good, the reaction will likely radicalize the Government.