As the Trump administration continues to lay sanctions down on Venezuela’s president Nicolas Maduro, Trump has further extended his threats to EU countries that have holdings in Venezuela, Spain being a prime example.
Although Venezuela has been a stronghold for Spanish investment in the past, since the economic crisis hit the country hard under Maduro’s regime they have been gradually relocating their resources. Trump froze all Venezuelan assets in the USA on Monday so investing in Venezuela is now riskier than ever.
There are still however currently 94 Spanish companies rooted in Venezuela which are supported by a €116m investment according to last year’s figures from the Secretary of State for Commerce. Due to the hyperinflation in Venezuela many of these subsidiaries have severed connections with their parent company in Spain to protect the interests of the European giants. Repsol and Telefonica are the only Spanish ones that have managed to keep their foot in the door. AirFrance remain in control of their holdings in Venezuela but they are one of the few EU multinationals that can afford to.
Brussels has denounced Trump’s unilateral sanctions on the EU countries affiliated with Venezuela as they too still have connections with Venezuela and believe that a maximalist approach is a step too far.