Instead of supporting the ongoing conciliation process between Venezuela's ruling socialist party and far-right opposition, Washington hopes the financial pressure will generate enough discontent to topple the government of President Nicolas Maduro, said the ministry.
"That puts pressure on U.S. and non-U.S. institutions to stop doing business with" Caracas, the lawyers said.
Cuba's president also expressed his solidarity for Venezuelan President Nicolas Maduro and his supporters.
Guaido celebrated the US action, saying it would protect Houston-based oil company Citgo, Venezuela's most valuable overseas asset, from attempts by Maduro to mortgage its assets. The election was also moved up from December 2018 to early 2018.
Crisis-wracked Venezuela has been mired in a political impasse since January when Guaido proclaimed himself acting president, quickly receiving the support of more than 50 countries. But Maduro has not stepped down.
Critically, it also exposes foreign entities doing business with the Maduro government to so-called secondary sanctions in the US - a fact not lost on Maduro's government as it tries to rally support at home and overseas.
The only exceptions allowed under the order include official federal government business and humanitarian aid.
The order came a few days after Trump threatened to impose a blockade on Venezuela as rounds of USA sanctions failed to turn the Venezuelan military against Maduro.
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US President Donald Trump had recently hinted at more sanctions.
Bolton warned Russian Federation against doubling down on its support for Caracas, and urged China to recognize opposition leader Juan Guaido as the country's legitimate leader if it wanted to recoup debt owed by Caracas, since a new government in Venezuela might not want to honor agreements made with countries that helped Maduro hang onto power.
"And I think for any global corporations, whether they're US-based, European, wherever they may be, to the boards of directors and shareholders, they ought to be asking their management if it's worth risking for a trickle of income from the illegitimate Maduro government, if it's worth risking their business in the United States".
Since then, Washington has applied a series of increasingly strong sanctions against the regime, including the state-owned PDVSA and the Central Bank, as well as more than 100 officials and relatives of Maduro.
Bolton, addressing a summit on Venezuela in the Peruvian capital Lima, emphasized that tougher worldwide action was needed to speed up a transition of power in the country, where more than four million Venezuelans have fled economic collapse.
The South American nation has one of the highest inflation in the world and there are serious shortages on medicine and food.
Almost 5,000 people leave Venezuela every day because of "instability and uncertainty" amid a crisis over the presidency and economy, and 3 million Venezuelans have already left the country since 2015, according to the UN's refugee agency. The numbers are expected to be higher since the situation continues to get worse.