Venezuela’s oil and gas sector will face new restrictions as the US announced on Wednesday (17) that it will partially reverse its sanctions relief. This decision was made due to accusations against 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. Foreign companies must now cease all Venezuelan oil and gas production and export operations by May 31. 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.
The 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, the US is committed to continuing talks with Maduro’s representatives, the opposition, and regional governments to uphold the Barbados Agreements for competitive elections in Venezuela.
