US reinstates oil sanctions on Venezuela | Global News

The Biden administration has made a bold move by reimposing oil sanctions on Venezuela, citing President Nicolás Maduro’s continued efforts to consolidate power and undermine democratic processes in the country. This decision comes just six months after the US had eased restrictions in hopes of supporting a democratic opening in the OPEC nation.

A senior US official, speaking on the condition of anonymity, stated that any US company investing in Venezuela would have 45 days to wind down operations to prevent adding uncertainty to global energy markets. This action essentially returns US policy to its previous stance, making it illegal for US companies to do business with Venezuela’s state-run oil producer, PDVSA, without specific approval from the US Treasury Department.

Maduro’s government had previously been granted relief from sanctions after agreeing to hold a free and competitive presidential election. However, Maduro’s inner circle has since used its control over Venezuela’s institutions to undermine the agreement, including blocking opposition candidates and imprisoning government critics.

Venezuelan authorities have dismissed the US rebuke, claiming they had fulfilled their commitments and accusing Washington of reneging on promises made during secret negotiations. Maduro defiantly stated that Venezuela no longer depends on the world and will continue to build a new economic model through its own efforts.

The impact of these renewed sanctions on Venezuela’s oil and gas industry remains uncertain. While the initial relief allowed for increased oil revenues, experts believe that the short timeframe was insufficient to attract major investments needed to revive production in the country with the world’s largest proven oil reserves. It remains to be seen whether these sanctions will pressure Maduro to offer a more level playing field in future elections.