Venezuelan President Nicolas Maduro has failed to hold up his end of the bargain to allow free and fair elections, according to the White House, and U.S. sanctions on the country’s oil exports could likely come into effect again at the end of the week. .
According to TankerTrackers.com, tanker operators serving the Venezuelan market have already resumed “black fleet”-style sanctions-evading behavior ahead of the planned restrictions.
In October, U.S. officials reached a deal with Maduro’s government that would lift longstanding sanctions on Venezuelan oil if Maduro eased restrictions on the country’s electoral system. The agreement called for the dictatorship to begin negotiations with an opposition party to set the terms for the next presidential election, scheduled for July 2024. This did not happen, according to the White House. Although there has been some progress, “Maduro and his representatives have 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 society Civil War,” State Department Matthew Miller said in a statement. statement.
U.S. officials met with Maduro’s representatives in Mexico last week to give them a final warning, but little progress has been made, the White House told reporters on Wednesday. The waiver will expire and the sanctions will gradually return to effect over the next six weeks.
However, even after sanctions return, some oil companies will still be allowed to continue operating in Venezuela under special license on a case-by-case basis. Potential candidates could include Chevron, which has numerous business interests in Venezuela and obtained its own license in November 2022.
Reimposing sanctions on Venezuela’s exports will create more political risks for the Biden administration. If the sanctions regime hurts Venezuela’s struggling economy, it could send more migrants streaming north toward the U.S. border. Sanctioning Venezuela’s oil exports could also increase the global price of crude, although Venezuela will still be able to find enough customers and supply chain partners to limit the ban’s effects on supply .
