Venezuela says U.S. sanctions against state oil company are illegal

[News_Editor]

Venezuela says U.S. sanctions against state oil company are illegal

2011-05-28 04:52:43 GMT+7 (ICT)

CARACAS, VENEZUELA (BNO NEWS) --Venezuelan Energy and Oil Minister Rafael Ramirez on Friday said that the sanctions imposed by the United States on the state oil company are illegal, the state-owned AVN news agency reported.

Ramirez added that the action taken against Petroleos de Venezuela (PDVSA) was not according to the Venezuelan law, under which the state-owned oil company has immunity from any sanctions.

"PDVSA is not any company, and as stated in the Venezuelan Constitution, it is owned by the State and thus has jurisdictional immunity," said Ramirez. "It is one of the state-owned companies that can't be subjected to sanctions by others."

On Tuesday, the U.S. Department of State imposed sanctions on seven foreign companies for supporting Iran’s energy sector, including PDVSA, under the Iran Sanctions Act (ISA) of 1996.

According to the U.S., PDVSA, delivered at least two cargoes of reformate to Iran between December 2010 and March 2011, worth approximately $50 million. Reformate is a blending component that improves the quality of gasoline.

In consequence, the state-owned company was prohibited from engaging in U.S. foreign exchange transactions, U.S. banking transactions, and all U.S. property transactions.

Also on Friday, the ruling socialist PSUV party (Partido Socialista Unido de Venezuela) called for all Venezuelans to reject the 'unilateral' sanctions by the U.S. government in a massive demonstration next Sunday.

The so-called "anti-imperialism" protests will begin at 10:00 a.m. local time at the Sucre de Catia Square in the capital Caracas. Despite the sanctions, PDVSA is still allowed to sell oil to the U.S. and other markets.

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