US Treasury Department Slams Sanction Upon Russia-Based Bank For Continued Support to Petro

By Prashant Jha

 

The United States Treasury Department has recently blacklisted a bank based in Russia for allegedly working too closely with Petro crypto, the oil-backed crypto which is a manifestation of Venezuela’s last ditch attempt to save its fledgling economy. The bank in question is called Evrofinance Mosnarbank. As per claims put forward by the US Treasury, it was planning to contribute financially towards the development of Petro crypto.

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The press release coming from the Treasury Department suggests that the bank was allegedly quite keen on assisting the development of Petro, something that the US financial authority has significant problems with. The United States, which has major political beef with Venezuelan leader Maduro, is determined to quash his pet project Petro crypto by any means available.

In the light of such a political backdrop, it hardly seems unusual that the US Treasury would slam a sanction on the said Russian bank for cozying up to Petro. The press release alleged:

“When the failed Venezuelan cryptocurrency called the Petro launched in 2018, Evrofinance emerged as the primary international financial institution willing to finance the Petro.  Early investors in the Petro were invited to buy the cryptocurrency by wiring funds to a Venezuelan government account at Evrofinance.  Evrofinance’s involvement in the Petro demonstrated Maduro’s [Venezuelan president] hope that the Petro would allow Venezuela to circumvent U.S. financial sanctions.”

As per details outlined in the Treasury Department’s press release, the Evrofinance bank is under joint ownership of Russian and Venezuelan parties. If the US account of this development is to be believed, the bank also has active support from both Russian and Venezuelan governments.

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Russia, as a country, has been blowing rather hot and cold with regard to Venezuela and its oil-backed cryptocurrency but US has always been quite determined in its anti-Petro stance. It is clearly quite incensed at the fact that Evrofinance continued to support the Venezuelan government despite shifts in the political landscape.

Steven T. Mnuchin, Secretary, Treasury had the following to say about the decision to blacklist :

“The illegitimate Maduro regime has profited off of the suffering of the Venezuelan people. This action demonstrates that the United States will take action against foreign financial institutions that sustain the illegitimate Maduro regime and contribute to the economic collapse and humanitarian crisis plaguing the people of Venezuela.”

What is the future of Petro and its native country’s tumultuous political backdrop? We can only wait for time to tell.