US sanctions 23 companies for Iranian ties, Venezuelan PDVSA among them

The United States announced new sanctions on Venezuela's state oil company PDVSA and six other smaller oil and shipping companies for engaging in trade with Iran in violation of a US ban. The State Department also announced additional sanctions on 16 companies and individuals from China, Syria, Iran, Belarus and North Korea for nuclear and weapons proliferation activities involving both Iran, North Korea, and Syria.

Deputy Secretary of State James Steinberg said the sanctions on PDVSA would prevent it from access to US government contracts and import/export financing, but would not affect the company's sale of oil to the United States or the activities of its subsidiaries

Oil Minister Rafael Ramirez said that Venezuela was still studying whether it could fulfill all its oil supply obligations under sanctions imposed by the United States on Tuesday.

Ramirez also told a news conference that the measures were an attempt to divide OPEC member countries, but Venezuela would continue to maintain ties with Iran and any other country. "This is a right we are not going to renounce," he said

Steinberg said the new US sanctions were aimed at squeezing Iran's gasoline supplies, and could have a serious impact as other companies recognize the risks of doing business with the Islamic Republic.

"By imposing these sanctions we're sending a clear message to companies around the world: Those who continue to irresponsibly support Iran's energy sector or help facilitate Iran's efforts to evade US. sanctions will face significant consequences," Steinberg told a news briefing.

The companies covered by the new US sanctions include PCCI, the Royal Oyster Group and Speedy Ship of the United Arab Emirates, Tanker Pacific of Singapore, Ofer Brothers Group of Israel, Associated Shipbroking of Monaco as well as PDVSA.

"All these companies have engaged in activities related to the supply of refined petroleum products to Iran," Steinberg said, adding that the main objective was to encourage Tehran to engage in real negotiations with the major powers over its nuclear program, which western nations and Israel fear is aimed at producing nuclear weapons.

"The intent of sanctions on Iran is to pressure it to comply with its international obligations," Steinberg said, adding that there was clear evidence that existing sanctions on Iran were pinching its oil and gas sectors.

Steinberg said the United States was imposing additional sanctions on 16 companies and individuals for activities related to proliferation of technologies related to nuclear arms and other weapons of mass destruction as well as cruise and ballistic missiles.

Most of the companies and individuals were sanctioned due to dealings with Iran, Steinberg said.