Washington DC - The US Treasury on Friday announced sanctions against a Venezuelan group which it claims is led by President Nicolas Maduro, alleging it backs leading drug cartels.

The Treasury's Office of Foreign Assets Control (OFAC) announced restrictions on the so-called "Cartel of the Suns," classing it as a Specially Designated Global Terrorist entity.

The OFAC agency, which determines sanctions based on US foreign policy, says the group is "headed by Nicolas Maduro" and "other high-ranking Venezuelan individuals in the Maduro regime."

It also alleged the cartel "provides material support" to the Tren de Aragua and the Sinaloa Cartel – criminal gangs designated by President Donald Trump's administration as terrorist groups.

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"Today's action further exposes the illegitimate Maduro regime's facilitation of narco-terrorism through terrorist groups like Cartel de los Soles," Treasury Secretary Scott Bessent said in a statement.

Trump's first term administration indicted Maduro and several of his top aides for "narco-terrorism" and offered a reward for their capture, claims that were slammed by the leftist Venezuelan leader.

According to Trump's government, "Cartel de los Soles" has an objective of "using the flood of illegal narcotics as a weapon against the United States."

Trump has targeted several groups south of the US border that he says are funneling vast amounts of dangerous illicit drugs into the US and are involved in extortion, migrant smuggling, and other violent crime.

Relations between Washington and Caracas have been deteriorating for years.

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In 2019, the US contested Maduro's re-election.

Trump this year announced a partial ban on travelers from Venezuela, among a dozen countries, and sought to revoke Temporary Protected Status from Venezuelan nationals. He has also moved to deport Venezuelans from the US en masse, accusing them of being linked to criminal gangs without providing any evidence.

On Thursday, Maduro announced that the US was allowing petroleum giant Chevron to resume operations in the South American country after previously slapping sanctions. Washington has not confirmed the development.