On Wednesday (17), the United States announced that it will partially reverse the relief of sanctions against Venezuela’s oil and gas sector. This decision was made due to accusations against the country’s dictator, Nicolás Maduro, who failed to fulfill his electoral commitments by disabling the main opposition candidate, María Corina Machado.
The Treasury Department announced that the relief, which expires at midnight, will not be renewed. As a result, foreign companies will have until May 31 to cease all Venezuelan oil and gas production and export operations. Companies looking to do business with Venezuela’s state-owned Petróleos de Venezuela (PDVSA) must now request individual authorizations from the US Treasury on a case-by-case basis.
The sanctions relief, implemented through General License 44 last October, was intended to encourage Maduro to comply with agreements signed with the opposition for democratic and competitive elections. However, with the disqualification of Machado and her replacement, Corina Yoris, not being allowed to register for the elections, the US now imposed new restrictions on business dealings with Venezuela’s oil and gas sector.
In response to this development, Washington intends to issue License 44A instead of General License 44. This license will require specific authorizations for companies to do business in this sector. These authorizations will be evaluated on a case-by-case basis by the US Treasury Department. Furthermore, Washington reserves the right to deny licenses that may conflict with US national security and foreign policy interests.
This reimposition of sanctions comes after Venezuela expanded business with foreign companies during the six-month relief period despite concerns about increased migration to the US and higher gasoline prices. Despite these challenges, however