UPDATE – US blacklists Venezuela's state-owned oil company

ADDS DETAILS THROUGHOUT </p> <p>By Michael Hernandez </p> <p>WASHINGTON (AA) – The U.S. on Monday blacklisted Venezuela's state-owned oil and natural gas company as it continues to ramp up economic and diplomatic pressure on Venezuelan President Nicolas Maduro. </p> <p>The sanctions on PDVSA are expected to block $7 billion in assets and result in $11 billion of lost export revenue over the next year, National Security Advisor John Bolton told reporters at the White House. </p> <p>General licenses have been issued to authorize certain transactions, including to some European and Caribbean countries to allow time to transition off of Venezuelan crude, according to the Treasury Department. </p> <p>The economic salvo comes after Venezuelan National Assembly President Juan Guaido declared himself interim president last week under articles 333 and 350 of the Venezuelan Constitution.</p> <p>The U.S., Canada and many Latin American nations were quick to recognize Guaido's claim as Maduro quickly lashed out, calling on Washington to withdraw its diplomats from Venezuela.</p> <p>The sanctions imposed Monday will only be lifted if Maduro cedes power to a new government, the U.S. administration warned. </p> <p>“The path to sanctions relief for PDVSA is through the expeditious transfer of control to the interim president or a subsequent democratically-elected government that is committed to taking concrete and meaningful actions to combat corruption,” said Treasury Secretary Steven Mnuchin. </p> <p>Venezuela's economy relies heavily on petroleum revenues, and while U.S. imports of Venezuelan crude have declined over the past decade, Caracas remains among the top five oil exporters to the U.S. </p> <p>Citgo, a U.S.-based refiner and marketer majority-owned by PDVSA, will be allowed to continue to operate provided that any revenues it generates are deposited in U.S.-based blocked accounts, according to Mnuchin. </p> <p>Mnuchin said the U.S. expects minimal impacts to oil refinery operations, noting that it expects reduced Venezuelan volume to be made up by Middle East suppliers.</p> <p>Several refineries, Mnuchin said, have already taken steps to reduce reliance on Venezuelan crude.