US sanctions Venezuela's oil giant for its Iran dealings

The United States on Tuesday announced that it was imposing sanctions against Venezuela's state-owned oil company Petróleos de Venezuela (Pdvsa) for its trade with Iran in violation of a US ban.

Assistant Secretary of State James Steinberg explained that the sanctions prevent Pdvsa from obtaining US government contracts and tapping into any type of financing. The interdiction, however, would not affect the company's sale of oil to the United States or the activities of its subsidiaries, the official said in Washington.

There was no immediate reaction from the Venezuelan government.

Steinberg said that Pdvsa delivered at least two cargoes of reformate to Iran between December 2010 and March 2011, worth approximately $50 million.

State Department officials also announced that they were imposing sanctions on six other smaller oil and shipping companies from Monaco, Syria, Belarus and China as well as a host of individuals from other nations for also doing business with Iran, which is under UN sanctions.