US reimposes oil sanctions amid election concerns
The United States said it would not renew a licence set to expire early yesterday that had broadly eased Venezuela oil sanctions, moving to reimpose punitive measures in response to President Nicolas Maduro’s failure to meet his election commitments.
Just hours before the deadline, the US Treasury Department announced on Wednesday that it had issued a replacement licence giving companies 45 days to “wind down” their business and transactions in the country’s oil and gas sector.
Washington had repeatedly threatened in recent months to reinstate energy sanctions unless Maduro made good on his promises that led to partial US sanctions relief from October, following a US-backed election deal between the government and the Venezuelan opposition.
The sweeping sanctions on Venezuela’s oil industry were first imposed by the Donald Trump administration in 2019 following Maduro’s re-election victory, which the US and other Western governments rejected.
While Maduro had honoured some commitments under last year’s deal, he had failed to meet others, including allowing the opposition to run the candidate of its choice against him in the July 28 presidential election, senior US officials said.
As a result, the Joe Biden administration planned to allow the current six-month general licence to expire without renewal just after midnight, State Department spokesman Matthew Miller said.
“We are concerned that Maduro and his representatives prevented the democratic opposition from registering the candidate of their choice, harassed and intimidated political opponents, and unjustly detained numerous political actors and members of civil society,” Miller said.
Multiple opposition allies and activists have faced arrest in recent months, which sources close to the ruling party said was likely a government reaction to declining domestic support for Maduro. He still enjoys support from the military and from Cuba, Russia and China.
However, Jorge Rodriguez, the head of Venezuela’s government-allied legislature, said Caracas had met the conditions of last year’s deal.
The reinstatement of sanctions was “a harmful action against Venezuela”, he said.
The withdrawal of the most significant element of US sanctions relief marks a major step back from Biden’s policy of re-engagement with the Maduro government.
But the Biden administration is stopping short of a full return to the “maximum pressure” campaign waged under former president Trump.
Venezuelan officials insist they are ready for any scenario and can weather renewed sanctions.
“We are open (for business), willing to keep progressing along with all foreign companies that want to come,” Oil Minister Pedro Tellechea said after the US announcement.
“Venezuela is ready to secure the stability of global oil markets that we need so much,” Tellechea said.