South China Morning Post

US reimposes oil sanctions amid election concerns

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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.

 ?? ?? The US first imposed sanctions on Venezuela’s oil sector in 2019.
The US first imposed sanctions on Venezuela’s oil sector in 2019.

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