The United States has decided to reimpose sanctions on Venezuelan oil, arguing that the government of Venezuelan leader Nicolás Maduro ‘has failed to live up to its commitment to hold free and fair presidential elections this year’.
According to the Financial Times (FT), the move amounts to an admission by the Joe Biden administration that the sanctions waiver granted six months ago ‘failed to persuade Maduro to run a truly competitive race’.
Faced with the risk that new sanctions against Venezuela could push up oil prices in a US election year, Washington will allow US oil major Chevron to continue its joint venture with Caracas’ state oil company PDVSA, which has been steadily increasing production.
US accuses Maduro of reneging on deal
In October, Maduro and the US-backed opposition coalition signed an electoral agreement in Barbados. The main opposition candidate, María Corina Machado, was prevented from running, her replacement was not allowed to register and some of her campaign team were detained.
“We found that while the Venezuelan authorities have fulfilled some important commitments, they have fallen short in other areas,” a senior US administration official said, citing “continued harassment and repression of opposition figures and civil society.
The US administration official added that Maduro had agreed to ‘certain aspects’ of the Barbados agreement, such as setting an election date, updating voter rolls and initiating a process to allow international election observation.
Maduro: We will not close the doors to dialogue
In another gesture of cooperation, Washington and Caracas completed a prisoner swap in December that freed 10 Americans from a Venezuelan jail in exchange for the release of Colombian businessman and Maduro ally Alex Saab, whom US prosecutors accused of transferring $350 million from Venezuela to US accounts.
Maduro said on Monday that he would “never close the door to dialogue” with the United States, adding that his negotiators had met with Washington’s representatives in Mexico last week.
“I told the negotiators to give the following message to President Biden: ‘If you want it, I want it. If you don’t want it, I don’t want it’,” he said.
In response to the reimposition of sanctions, the president of the Venezuelan Congress, Jorge Rodríguez, accused Washington of reneging on the trade agreement reached with Caracas. “We keep our word and we will never accept ultimatums. We will see who keeps their word and who does not, and whether they fulfil their commitments,” Rodríguez said.
US energy companies will be able to apply to the US Treasury for special licences
According to recent reports, Shell and Trinidad’s national gas company have signed an agreement to export Venezuelan offshore gas through the Caribbean island, while Spain’s Repsol and France’s Maurel & Prom have also signed deals. These were covered by separate US sanctions licences. US officials declined to say whether those licences would continue, citing commercial confidentiality.
US companies investing in oil and gas in Venezuela that are not covered by existing licences have until 31 May to cease operations. According to a statement from the US State Department on Wednesday, the US Treasury’s Office of Foreign Assets Control “will consider requests for special licences to continue operations after the deadline on a case-by-case basis”.
Venezuelan Oil Minister Pedro Tellechea told reporters that the sanctions would not harm the country’s economy and that foreign companies could apply to the US Treasury for individual licences.
