The U.S. Department of the Treasury's Office of Foreign Assets Control announced extensive sanctions on Thursday targeting three nephews of Venezuelan President Nicolas Maduro's wife, a Panamanian businessman, and six shipping companies involved in Venezuela's oil sector. This marks a major step in Washington's efforts to dismantle what officials call a corrupt drug trafficking network.

"Nicolas Maduro and his criminal associates in Venezuela are flooding the United States with drugs that are harming the American people," said Treasury Secretary Scott Bessent. "These sanctions reverse the Biden Administration's unsuccessful attempt to negotiate with Maduro, which allowed his oppressive rule at the cost of the Venezuelan and American people. Under President Trump's leadership, the Treasury is holding the regime and its associates accountable for their ongoing crimes."

This action indicates a shift away from Biden-era policies, as the Trump Administration argues that prior sanctions relief was granted in exchange for promised democratic reforms that never happened.

Among those affected by the sanctions are Efrain Antonio Campo Flores and Franqui Francisco Flores de Freitas, known as the "narco-nephews." They were arrested in Haiti in 2015 for trying to smuggle large amounts of cocaine into the U.S. They were convicted in 2016 but received clemency from President Biden in October 2022. Treasury officials claim both men have resumed drug trafficking since their return to Venezuela.

Also targeted was Carlos Erik Malpica Flores, a former national treasurer of Venezuela and ex-vice president of the state-owned oil company PDVSA. He had been removed from the sanctions list in 2022 during negotiations that ultimately failed to restore democratic elections.

The maritime enforcement part of Thursday's action focused on six shipping companies and their ships that the Treasury described as engaging in "deceptive and unsafe shipping practices" to transport Venezuelan oil. The companies listed include Myra Marine Limited, Arctic Voyager Incorporated, and Ready Great Limited from the Marshall Islands, along with Poweroy Investment Limited from the British Virgin Islands, Sino Marine Services Limited from the UK, and Full Happy Limited, also from the Marshall Islands.

The ships—WHITE CRANE, KIARA M, H. CONSTANCE, LATTAFA, TAMIA, and MONIQUE—have been classified as blocked property. Some have reportedly manipulated their transmissions to hide their locations while loading Venezuelan crude oil, according to OFAC.

This announcement comes a day after the U.S. Coast Guard seized the oil tanker Skipper off the Venezuelan coast. President Trump characterized the operation, confirmed on Wednesday, as "the largest one ever," and mentioned, "We keep it, I guess," when asked about the fate of the oil.

U.S. Attorney General Pam Bondi shared video footage of helicopters approaching the tanker and armed personnel descending onto it, describing this as a collaborative operation involving the FBI, Homeland Security, Coast Guard, and U.S. military.

The Venezuelan government condemned the seizure as "blatant theft" and "an act of international piracy," while the Iranian embassy in Caracas referred to it as a "serious violation of international laws and norms."

The Skipper, previously known as the Adisa, had been sanctioned by the U.S. for alleged connections to Iranian oil trading.

As a result of these sanctions, all property and interests in property of the designated entities within U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from conducting transactions with them. Any entities owned 50 percent or more by blocked individuals are also automatically blocked under the regulations.

These sanctions are part of a long-term strategy to exert economic pressure on the Maduro regime, which has faced U.S. sanctions on its oil sector since 2019 when PDVSA was first designated and subsequently blocked under executive orders issued by President Trump.