On April 17, 2024, President Nicolás Maduro’s attempts to solidify his hold on power were chastised by the Biden administration, which had lifted harsh oil sanctions six months earlier in an attempt to revive the now-failing prospects for a democratic opening in the OPEC member.
During a press conference, a top US official explained that any US business investing in Venezuela would have 45 days to close down to prevent more unsettled conditions in the world oil markets.
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The official discussed US policy discussions while speaking on condition of anonymity.
After agreeing to cooperate with opposition figures to stage a free and fair presidential election this year, the US lifted sanctions against Maduro’s administration in October, exempting it from oversight over its state-run mining, oil, and gas industries.
Even though Maduro went on to call for international observers to oversee the election in July and set a date for it, his inner circle has undermined the accord by using the governing party’s complete control over Venezuela’s institutions. One of his primary opponents, former senator Maria Corina Machado, has been prevented from filing her candidacy or the candidacy of a chosen replacement.
Over the previous six months, several government dissidents, including several of Machado’s assistants, have also been imprisoned.
Under the event actions, US companies are prohibited from doing business with the state-run oil producer Petróleos de Venezuela SA, or PDVSA, unless they obtain a specific license from the US Treasury Department. This essentially returns US policy to its pre-agreement state, which was achieved on the Caribbean island of Barbados.
Spokesman for the State Department Matthew Miller stated, “We again call on Maduro to allow all candidates and parties to participate in the electoral process and release all political prisoners without restrictions or delay.” He noted, “We will continue to support Venezuelans’ aspirations for a more democratic, stable, and prosperous Venezuela.”
Venezuelan officials fiercely brushed off the diplomatic criticism, claiming they had kept their end of the bargain in Barbados and charging Washington with breaking a pledge to remove all sanctions during private talks between the two nations.
“The gringos think they can threaten Venezuela,” declared Maduro at a live event. “There’s no sanction, no threat, that today can damage our efforts to build a new productive economic model because we no longer depend on anyone in the world, just our own work.”
It’s unclear how the rebound will affect Venezuela’s long-struggling oil and gas sector or if it will put pressure on Maduro to provide more equitable electoral conditions.
The original six-month respite was all that was granted. According to experts, there isn’t nearly enough time to draw in the significant financial inputs needed to restart Venezuela’s long-stagnant output. Venezuela is home to the greatest known oil reserves in the world.
But during the six months of US sanctions easing, Maduro’s administration was able to obtain much-needed funds by permitting Venezuela to transfer oil directly rather than via dubious intermediaries who demand a large price.
Furthermore, Chevron, the only significant US oil driller in Venezuela, is unaffected by the tightening of sanctions because it was granted a license in 2022 amidst worries that Russia’s invasion of Ukraine would disrupt the world’s energy supply.
