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US to reimpose sanctions on Venezuela’s oil and gas sector

us reimposes sanctions on venezuela

The United States plans to reinstate sanctions on Venezuela’s oil and gas sector due to the Maduro government’s failure to facilitate an “inclusive and competitive election” as promised. Last October, the US Treasury Department issued a temporary authorization, General License 44, allowing transactions with Venezuela’s national oil and gas sector until its expiration.

The decision to not renew the license was made after a thorough review concluded that the Maduro government had not fulfilled key aspects of the Barbados Agreement, particularly concerning the participation of opposition candidate Maria Corina Machado and her designated alternative candidate, Dr. Corina Yoris, in the presidential election.

While the impact of revoking the authorization remains uncertain, the US will maintain Chevron’s license issued in November 2022, allowing limited natural resource extraction operations in Venezuela. Despite economic growth facilitated by Chevron’s operations, the decision to reinstate sanctions emphasizes the importance of Venezuela holding competitive and inclusive elections.

US officials stressed ongoing engagement with all stakeholders to support Venezuela’s democratic aspirations, despite potential implications on oil prices or unauthorized migration being considered in the decision-making process.

In response, Venezuela’s oil minister, Pedro Tellechea, expressed readiness to endure the consequences of renewed sanctions, asserting that Venezuela’s growth would continue regardless, while warning of potential spikes in oil prices affecting the international community.

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