Trump slaps sanctions on Venezuela; Maduro sees effort to force defaultCARACAS/WASHINGTON/ (Reuters) - U.S. President Donald Trump signed an executive order that prohibits dealings in new debt from the Venezuelan government or its state oil company on Friday in an effort to halt financing that the White House said fuels President Nicolas Maduro s  dictatorship.  Maduro, who has frequently blamed the United States for waging an  economic war  on Venezuela, said the United States was seeking to force Venezuela to default   but he said it would not succeed. The order is Washington s biggest sanctions blow to date against Maduro and is intended to punish his leftist government for what Trump has called an erosion of democracy in the oil-rich country, which is already reeling from an economic crisis. It suggests a weakening in already strained relations between the two countries. Just three days ago, Maduro said the relations between Caracas and Washington were at their lowest point ever.  All they re trying to do to attack Venezuela is crazy,  said Maduro on a TV broadcast on Friday.  With the efforts of our people, it will fail and Venezuela will be stronger, more free, and more independent.  Venezuela faces a severe recession with millions suffering food and medicine shortages and soaring inflation. The South American nation relies on oil for some 95 percent of export revenue. Citgo Petroleum [PDVSAC.UL], the U.S. refiner of Venezuela s ailing state-run oil company PDVSA, is  practically  being forced to close by the order, warned Maduro, adding that a preliminary analysis showed the sanctions would impede Venezuelan crude exports to the United States. He said he was calling  urgent  meetings with U.S. clients of Venezuelan oil. The new sanctions ban trade in any new issues of U.S.-dollar-denominated debt of the Venezuelan government and PDVSA [PDVSA.UL] because the ban applies to use of the U.S. financial system.  As a result, it will be it tricky for PDVSA to refinance its heavy debt burden. Investors had expected that PDVSA would seek to ease upcoming payments through such an operation, as it did last year, which usually requires that new bonds be issued. Additional financial pressure on PDVSA could push the cash-strapped company closer to a possible default, or bolster its reliance on key allies China and Russia, which have already lent Caracas billions of dollars.   They want us to fall into default,  said Maduro, adding that just under two-thirds of Venezuelan bond holders are in the United States. Maduro insisted that Venezuela would continue paying its debts. The decision also blocks Citgo Petroleum from sending dividends back to the South American nation, a senior official said, in a further blow to PDVSA s coffers. However, the order stops short of a major ban on crude trading that could have disrupted Venezuela s oil industry and worsened the country s faltering economy. It also protects holders of most existing Venezuelan government and PDVSA bonds, who were relieved the sanctions did not go further. Venezuelan and PDVSA bonds were trading broadly higher on Friday afternoon.  Maduro may no longer take advantage of the American financial system to facilitate the wholesale looting of the Venezuelan economy at the expense of the Venezuelan people,  U.S. Treasury Secretary Steven Mnuchin said on Friday. Venezuela s Oil Ministry and PDVSA did not immediately respond to a request for comment.  PDVSA, the financial engine of Maduro s government, is already struggling due to low global oil prices, mismanagement, allegations of corruption and a brain drain. Washington last month sanctioned PDVSA s finance vice president, Simon Zerpa, complicating some of the company s operations as Americans are now banned from doing business with him. Trump has so far spared Venezuela from broader sanctions against its vital oil industry, but officials have said such actions are under consideration. The Republican president has also warned of a  military option  for Venezuela, although White House national security adviser H.R. McMaster said on Friday that no such actions are anticipated in the  near future.  Venezuela has for months struggled to find financing because of PDVSA s cash flow problems and corruption scandals have led institutions to tread cautiously, regardless of sanctions. Russia and its state oil company Rosneft have emerged as an increasingly important source of financing for PDVSA, according to a Reuters report.   On at least two occasions, the Venezuelan government has used Russian cash to avoid imminent defaults on payments to bondholders, a high-level PDVSA official told Reuters.  At this point our view is that the country can scrape by without defaulting this year, largely with the help of Chinese and Russian backing and by further squeezing imports. Next year is a tossup,  said Raul Gallegos, an analyst with the consultancy Control Risks. However, China has grown reticent to extend further loans because of payment delays and corruption. Russia has been negotiating financing in exchange for oil assets in Venezuela, sources have told Reuters, but going forward it would be difficult for the OPEC member to provide enough assets to keep up loans destined for bond payments. Venezuela s government has around $2 billion in available cash to make $1.3 billion in bond payments by the end of the year and to cover the import of food and medicine, according to documents reviewed by Reuters. worldnews
trump slaps sanctions venezuela maduro sees effort force reuters president donald trump signed executive order prohibits dealings new debt venezuela government state oil company friday effort halt financing white house said fuels president nicolas maduro dictatorship maduro frequently blamed united states waging economic war venezuela said united states seeking force venezuela default said would succeed the order washington biggest sanctions blow date maduro intended punish leftist government trump called erosion democracy country already reeling economic crisis it suggests weakening already strained relations two countries just three days ago maduro said relations cracks washington lowest point ever all trying attack venezuela crazy said maduro tv broadcast friday with efforts people fail venezuela stronger free independent venezuela faces severe recession millions suffering food medicine shortages soaring inflation the south american nation relies oil percent export revenue city petroleum refine venezuela ailing oil company pdfs practically forced close order warned maduro adding preliminary analysis showed sanctions would impede venezuela crude exports united states he said calling urgent meetings clients venezuela oil the new sanctions ban trade new issues debt venezuela government pdfs ban applies use financial system as result tricky pdfs finance heavy debt burden investors expected pdfs would seek ease upcoming payments operation last year usually requires new bonds issued additional financial pressure pdfs could push company closer possible default bolster reliance key allies china russia already lent cracks billions dollars they want us fall default said maduro adding venezuela bond holders united states maduro insisted venezuela would continue paying debts the decision also blocks city petroleum sending dividends back south american nation senior official said blow pdfs offers however order stops short major ban crude trading could disrupted venezuela oil industry worsened country altering economy it also protects holders existing venezuela government pdfs bonds relieved sanctions go venezuela pdfs bonds trading broadly higher friday afternoon maduro may longer take advantage american financial system facilitate wholesale looting venezuela economy expense venezuela people treasury secretary steven mnuchin said friday venezuela oil ministry pdfs immediately respond request comment pdfs financial engine maduro government already struggling due low global oil prices mismanagement allegations corruption brain drain washington last month sanctioned pdfs finance vice president simon era complicating company operations americans banned business trump far spared venezuela broader sanctions vital oil industry officials said actions consideration the republican president also warned military option venezuela although white house national security adviser master said friday actions anticipated near future venezuela months struggled find financing pdfs cash flow problems corruption scandals led institutions tread cautiously regardless sanctions russia state oil company rosneft emerged increasingly important source financing pdfs according reuters report on least two occasions venezuela government used russian cash avoid imminent defaults payments bondholders pdfs official told reuters at point view country scrape without defaulting year largely help chinese russian backing squeezing imports next year toss said raul alleges analyst consultancy control risks however china grown recent extend loans payment delays corruption russia negotiating financing exchange oil assets venezuela sources told reuters going forward would difficult open member provide enough assets keep loans destined bond payments venezuela government around billion available cash make billion bond payments end year cover import food medicine according documents reviewed reuters worldnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Trump slaps sanctions on Venezuela; Maduro sees effort to force defaultCARACAS/WASHINGTON/ (Reuters) - U.S. President Donald Trump signed an executive order that prohibits dealings in new debt from the Venezuelan government or its state oil company on Friday in an effort to halt financing that the White House said fuels President Nicolas Maduro s  dictatorship.  Maduro, who has frequently blamed the United States for waging an  economic war  on Venezuela, said the United States was seeking to force Venezuela to default   but he said it would not succeed. The order is Washington s biggest sanctions blow to date against Maduro and is intended to punish his leftist government for what Trump has called an erosion of democracy in the oil-rich country, which is already reeling from an economic crisis. It suggests a weakening in already strained relations between the two countries. Just three days ago, Maduro said the relations between Caracas and Washington were at their lowest point ever.  All they re trying to do to attack Venezuela is crazy,  said Maduro on a TV broadcast on Friday.  With the efforts of our people, it will fail and Venezuela will be stronger, more free, and more independent.  Venezuela faces a severe recession with millions suffering food and medicine shortages and soaring inflation. The South American nation relies on oil for some 95 percent of export revenue. Citgo Petroleum [PDVSAC.UL], the U.S. refiner of Venezuela s ailing state-run oil company PDVSA, is  practically  being forced to close by the order, warned Maduro, adding that a preliminary analysis showed the sanctions would impede Venezuelan crude exports to the United States. He said he was calling  urgent  meetings with U.S. clients of Venezuelan oil. The new sanctions ban trade in any new issues of U.S.-dollar-denominated debt of the Venezuelan government and PDVSA [PDVSA.UL] because the ban applies to use of the U.S. financial system.  As a result, it will be it tricky for PDVSA to refinance its heavy debt burden. Investors had expected that PDVSA would seek to ease upcoming payments through such an operation, as it did last year, which usually requires that new bonds be issued. Additional financial pressure on PDVSA could push the cash-strapped company closer to a possible default, or bolster its reliance on key allies China and Russia, which have already lent Caracas billions of dollars.   They want us to fall into default,  said Maduro, adding that just under two-thirds of Venezuelan bond holders are in the United States. Maduro insisted that Venezuela would continue paying its debts. The decision also blocks Citgo Petroleum from sending dividends back to the South American nation, a senior official said, in a further blow to PDVSA s coffers. However, the order stops short of a major ban on crude trading that could have disrupted Venezuela s oil industry and worsened the country s faltering economy. It also protects holders of most existing Venezuelan government and PDVSA bonds, who were relieved the sanctions did not go further. Venezuelan and PDVSA bonds were trading broadly higher on Friday afternoon.  Maduro may no longer take advantage of the American financial system to facilitate the wholesale looting of the Venezuelan economy at the expense of the Venezuelan people,  U.S. Treasury Secretary Steven Mnuchin said on Friday. Venezuela s Oil Ministry and PDVSA did not immediately respond to a request for comment.  PDVSA, the financial engine of Maduro s government, is already struggling due to low global oil prices, mismanagement, allegations of corruption and a brain drain. Washington last month sanctioned PDVSA s finance vice president, Simon Zerpa, complicating some of the company s operations as Americans are now banned from doing business with him. Trump has so far spared Venezuela from broader sanctions against its vital oil industry, but officials have said such actions are under consideration. The Republican president has also warned of a  military option  for Venezuela, although White House national security adviser H.R. McMaster said on Friday that no such actions are anticipated in the  near future.  Venezuela has for months struggled to find financing because of PDVSA s cash flow problems and corruption scandals have led institutions to tread cautiously, regardless of sanctions. Russia and its state oil company Rosneft have emerged as an increasingly important source of financing for PDVSA, according to a Reuters report.   On at least two occasions, the Venezuelan government has used Russian cash to avoid imminent defaults on payments to bondholders, a high-level PDVSA official told Reuters.  At this point our view is that the country can scrape by without defaulting this year, largely with the help of Chinese and Russian backing and by further squeezing imports. Next year is a tossup,  said Raul Gallegos, an analyst with the consultancy Control Risks. However, China has grown reticent to extend further loans because of payment delays and corruption. Russia has been negotiating financing in exchange for oil assets in Venezuela, sources have told Reuters, but going forward it would be difficult for the OPEC member to provide enough assets to keep up loans destined for bond payments. Venezuela s government has around $2 billion in available cash to make $1.3 billion in bond payments by the end of the year and to cover the import of food and medicine, according to documents reviewed by Reuters. worldnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: trump slaps sanctions venezuela maduro sees effort force reuters president donald trump signed executive order prohibits dealings new debt venezuela government state oil company friday effort halt financing white house said fuels president nicolas maduro dictatorship maduro frequently blamed united states waging economic war venezuela said united states seeking force venezuela default said would succeed the order washington biggest sanctions blow date maduro intended punish leftist government trump called erosion democracy country already reeling economic crisis it suggests weakening already strained relations two countries just three days ago maduro said relations cracks washington lowest point ever all trying attack venezuela crazy said maduro tv broadcast friday with efforts people fail venezuela stronger free independent venezuela faces severe recession millions suffering food medicine shortages soaring inflation the south american nation relies oil percent export revenue city petroleum refine venezuela ailing oil company pdfs practically forced close order warned maduro adding preliminary analysis showed sanctions would impede venezuela crude exports united states he said calling urgent meetings clients venezuela oil the new sanctions ban trade new issues debt venezuela government pdfs ban applies use financial system as result tricky pdfs finance heavy debt burden investors expected pdfs would seek ease upcoming payments operation last year usually requires new bonds issued additional financial pressure pdfs could push company closer possible default bolster reliance key allies china russia already lent cracks billions dollars they want us fall default said maduro adding venezuela bond holders united states maduro insisted venezuela would continue paying debts the decision also blocks city petroleum sending dividends back south american nation senior official said blow pdfs offers however order stops short major ban crude trading could disrupted venezuela oil industry worsened country altering economy it also protects holders existing venezuela government pdfs bonds relieved sanctions go venezuela pdfs bonds trading broadly higher friday afternoon maduro may longer take advantage american financial system facilitate wholesale looting venezuela economy expense venezuela people treasury secretary steven mnuchin said friday venezuela oil ministry pdfs immediately respond request comment pdfs financial engine maduro government already struggling due low global oil prices mismanagement allegations corruption brain drain washington last month sanctioned pdfs finance vice president simon era complicating company operations americans banned business trump far spared venezuela broader sanctions vital oil industry officials said actions consideration the republican president also warned military option venezuela although white house national security adviser master said friday actions anticipated near future venezuela months struggled find financing pdfs cash flow problems corruption scandals led institutions tread cautiously regardless sanctions russia state oil company rosneft emerged increasingly important source financing pdfs according reuters report on least two occasions venezuela government used russian cash avoid imminent defaults payments bondholders pdfs official told reuters at point view country scrape without defaulting year largely help chinese russian backing squeezing imports next year toss said raul alleges analyst consultancy control risks however china grown recent extend loans payment delays corruption russia negotiating financing exchange oil assets venezuela sources told reuters going forward would difficult open member provide enough assets keep loans destined bond payments venezuela government around billion available cash make billion bond payments end year cover import food medicine according documents reviewed reuters worldnews