Mubasher: The US levied sanctions against Venezuela’s state-owned oil company, a move which was put off for long on fears that it would raise crude prices and hurt American refiners.

US Treasury Secretary Steven Mnuchin on Monday determined that people operating Venezuela’s oil industry are subject to US sanctions.

The Venezuelan energy sector is dominated by state-run Petroleos de Venezuela (PdVSA), the parent company of the US-based Citgo oil firm.

“The US is holding accountable those responsible for Venezuela's tragic decline," Secretary Mnuchin said during a news briefing, noting that “PdVSA has long been a vehicle for embezzlement, for corruption for Venezuelan officials and businessmen.”

“Today's designation of PdVSA will help prevent further diversion of Venezuela's assets by Maduro, and will preserve these assets for the people of Venezuela where they belong,” Mnuchin added, stating that the sanctions would take effect “immediately.”

“The path to sanctions relief for PdVSA is through the expeditious transfer of control to the interim president or a subsequent democratically elected government who is committed to taking concrete and meaningful actions to combat corruption,” Mnuchin said.

Under the sanctions, US firms can continue to buy Venezuelan crude oil, but payments should be held in an account inaccessible by the Maduro regime.

“If the people in Venezuela want to continue to sell us oil, as long as that money goes into blocked accounts, we'll continue to take it,” Mnuchin said.

The oil sanctions marked the latest and most critical escalation of the US administration’s pressure campaign aimed at overthrowing Maduro.

Last week, US President Donald Trump recognised Venezuela’s National Assembly Juan Guaido as the legitimate interim president of the nation, while the White House is garnering international support for the opposition leader.