US eases sanctions on Venezuelan oil after Maduro's 2024 poll agreement
In response to an electoral agreement between the Venezuelan government and opposition parties for the 2024 election, the Biden administration has taken a significant step by broadly easing sanctions on Venezuela's oil sector. The move marks the most extensive rollback of Trump-era sanctions on Caracas. The U.S. Treasury Department has issued a new general license, allowing OPEC member Venezuela, which has been under strict sanctions since 2019, to produce and export oil to its selected markets for the next six months without limitations. The US has eased sanctions on Venezuela's oil sector following an electoral agreement between the Venezuelan government and opposition parties for the 2024 election. This move marks the most extensive rollback of Trump-era sanctions on Caracas. The U.S. Treasury Department has issued a new general license allowing OPEC member Venezuela to produce and export oil to its selected markets for the next six months without limitations. While these measures have eased some of Venezuela's toughest sanctions, other restrictions remain in place. The easing of sanctions could help boost global oil flows amid high prices due to sanctions on Russia and OPEC+ output reductions.
Publié : il y a 2 ans par WION Web Team dans Business Politics
In response to an electoral agreement between the Venezuelan government and opposition parties for the 2024 election, the Biden administration has taken a significant step by broadly easing sanctions on Venezuela's oil sector. The move marks the most extensive rollback of Trump-era sanctions on Caracas. The U.S. Treasury Department has issued a new general license, allowing OPEC member Venezuela, which has been under strict sanctions since 2019, to produce and export oil to its selected markets for the next six months without limitations.
U.S. Secretary of State Antony Blinken has welcomed President Nicolas Maduro's electoral concessions but urged him to begin lifting bans on opposition presidential candidates and releasing political prisoners and detained Americans by the end of November. A senior State Department official cautioned that sanctions relief measures might be reversed if Maduro fails to take such actions. These changes follow months of negotiations between the U.S. and Venezuela aimed at encouraging democratic elections.
While this easing of sanctions represents a significant shift from the Trump administration's "maximum pressure" campaign against Venezuela's socialist government, it also reflects President Joe Biden's administration's increased engagement with President Maduro on various issues, including energy and migration.
The recent agreement between Maduro's government and the opposition focused on electoral guarantees for an internationally monitored vote in the second half of 2024. However, it did not address the reinstatement of opposition candidates previously barred from public office. The U.S. sanctions relief is in line with Washington's commitment to rewarding concrete steps toward competitive elections and respect for human rights and fundamental freedoms.
Although these measures have eased some of Venezuela's toughest sanctions, other restrictions remain in place. Still, they offer the possibility of reopening Venezuela to numerous oil companies that had limited operations in the country.
The U.S. had initially imposed harsh sanctions on Venezuela following President Maduro's disputed 2018 re-election. Since 2019, these sanctions have prevented the state-run oil company PDVSA from exporting to its chosen markets.
The changes announced on Wednesday include a six-month general license for the production, sale, and export of Venezuela's crude and gas without limitations on customers or destinations. A general license has also been issued to allow dealings with Minerven, the Venezuelan state-owned gold mining company. However, the U.S. Treasury Department emphasized that it could revoke these authorizations if Maduro's representatives fail to follow through on their commitments.
Although the easing of sanctions could help boost global oil flows amid high prices due to sanctions on Russia and OPEC+ output reductions, experts believe Venezuela's exports are unlikely to offset these cuts without significant investment in its oil sector. Two decades of mismanagement and insufficient investment, combined with U.S. oil sanctions since 2019, have weakened PDVSA's ability to recover quickly and offer its crude at fair prices.
Talks between the government and the opposition on resolving Venezuela's political and economic crisis were held for the first time in nearly a year, resulting in the recent electoral agreement. While the deal allows each side to choose its 2024 candidate, it does not reverse bans on certain opposition figures.
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