Approves Economic Sanctions, Arms Embargo Against Venezuela

Approves Economic Sanctions, Arms Embargo Against Venezuela”

As well as the arms embargo, the EU has also set up the framework for a blacklist of sanctioned Venezuelan individuals and entities, though for the moment it remains empty. "In addition to its political and diplomatic efforts in support of a peaceful negotiated way out of the political crisis, the council has today decided by unanimity to adopt restrictive measures, underscoring its concerns with the situation in the country", the EU said in a statement. "In due course it will be settled and follow up steps will be undertaken.” And just to underscore that it has no intention of pushing Venezuela into involuntary bankruptcy, ONGC added that “we have a good working relationship with PDVSA".

To make matters worse for Venezuela, the European Union on Monday approved a host of economic sanctions on Venezuela, including a ban on arms sales, a system to freeze assets and new travel restrictions on some government officials, The Financial Times reported.

Spain has long pushed for sanctions on those close to Maduro, but the EU has been divided over whom to target. The ISDA Determinations Committee will hold its first meeting regarding PDVSA at 11am on Friday, November 10, although at this point the decision is trivial: the 5 year implied probability of a PDVSA default climbed to 99.99% on Wednesday from 93.25% a year ago, according to credit-default swaps data compiled by Bloomberg.

Investors eager to be paid back, however, worry that confusion clouds the meeting.

On the other hand, restructuring is also difficult because the same sanctions prohibit investors to negotiate with a number of state officials who now sit as members of a commission that takes care of debt.

Derivatives industry association ISDA said on Tuesday it has received a question from investors as to whether the Republic of Venezuela is in default due to a late payment of coupons on sovereign bonds.

But Zerpa's exhortation to attend, plus the location of the meeting right opposite the Miraflores presidential palace, appear to indicate the meeting will not be a low-profile affair.

Often in charge of delivering President Nicolas Maduro's most critical messages, he blasts critics publicly, exposing supposed conspiracy rings and threatening legal action against dissident leaders from National Assembly President Julio Borges to Luisa Ortega, the public-prosecutor-turned-whistle-blower.

The two sides in September held "exploratory meetings" with the backing of Dominican President Danilo Medina. "It's a reality that Venezuela is under a U.S. military threat". She was responding to reporter Marc Perelman's claim that 300,000 children are at risk of dying of hunger in Venezuela. Link to original article.

Venezuela, which is facing the world's highest inflation rate, has seen widespread food shortages in recent years in part because of its failing socialist revolution.

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