The Biden administration will reimpose crushing oil sanctions on Venezuela and tighten its governance just six months after the US eased restrictions aimed at boosting hopes of democratic opening in the OPEC member country. President Nicolás Maduro’s attempts to do so have been rebuked.
A senior U.S. official who discussed the decision with reporters said U.S. companies investing in Venezuela will be given 45 days to suspend operations to avoid creating uncertainty in global energy markets. The official spoke on condition of anonymity to discuss U.S. policy deliberations.
In October, the United States ordered the Maduro government to lift sanctions on the state-run oil, gas and mining sector after agreeing to work with opposition lawmakers to hold free and competitive presidential elections this year. Admitted.
President Maduro continued to schedule elections for July and invited international observers to monitor the vote, but his allies are using the ruling party’s complete control over Venezuela’s institutions to undermine the deal. There is.
The actions include blocking his main rival, former Rep. María Colina Machado, from registering her candidacy or that of a designated alternative candidate. A number of government critics have also been jailed in the past six months, including several of Machado’s closest aides.
Wednesday’s action effectively returns U.S. policy to what it was before the deal on the Caribbean island of Barbados, which prohibits U.S. companies from doing business with national oil producers without special permission from the U.S. Treasury. becomes illegal.
It is unclear what impact the snapback will have on Venezuela’s long-suffering oil and gas industry or whether it will pressure Maduro to provide a more level playing field.
The initial grace period was only six months. Experts say there is still not enough time to attract the large-scale capital investment needed to revive long-stalled production in Venezuela, which has the world’s largest proven oil reserves.
But by allowing oil to be sent directly to Venezuela without going through shady intermediaries that charge high fees, the Maduro regime has boosted oil revenues during the six months of US sanctions relief and gotten much-needed cash. were able to procure.
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Experts say the Biden administration is signaling growing dissatisfaction with Maduro, but is unlikely to return to the failed Trump-era “maximum pressure” campaign that only strengthened the hand of leftist leaders. It is said to be low.
“It has become impossible for the White House to pretend that the Maduro regime is somehow complying or intending to comply with the tacit agreement to partially lift sanctions,” said Christopher Sabatini, a Chatham House researcher. said. London. “Ignoring it would have made the United States look weaker and undermined its credibility in using sanctions against Venezuela as well as other countries.”
Opinion polls show that most Venezuelans would enthusiastically remove President Maduro from office if given even half a chance. A number of regional leaders, including the leftist presidents of Colombia and Brazil, have joined the United States in criticizing the Maduro government for not honoring its pledges and allowing competitive elections.
