'Total Shock': PDVSA Workers Take Stock of U.S. Sanctions' Impact

Shock and fear swept through the headquarters of Venezuela's state-owned oil firm, PDVSA, on Monday, employees said, after the United States imposed sanctions aimed at limiting President Nicolas Maduro's access to oil revenues.A high-level manager said PDVSA President and Oil Minister Manuel Quevedo was ensconced in his office. Several employees and union leaders wondered how much worse PDVSA's situation could get now that President Donald Trump's administration had frozen its crucial U.S.-based assets."There is total shock. This company is already too beat-down," the manager said on condition of anonymity. PDVSA was once among the world's leading oil companies, but has suffered years of mismanagement and output declines.White House national security adviser John Bolton said the sanctions on PDVSA were intended to prevent Maduro's government from siphoning off funds from the oil company to maintain his grip on power. Bolton said they would block Maduro from accessing PDVSA assets worth $7 billion and cost him $11 billion in lost export proceeds over the next year.Trump's order restricts assets including PDVSA's U.S. refining arm, Citgo Petroleum Corp,, Venezuela's most important foreign asset and a key source of foreign income.The U.S. government, along with countries around the world, have declared Maduro an illegitimate usurper and have thrown support behind the leader of the Venezuelan opposition, Juan Guaido, who has proclaimed himself interim president.Maduro began a second term on Jan. 10 after an election last year that the opposition and the United States considered a fraud. Maduro says he is victim of an economic war and accuses Trump of directing a coup against his socialist government.