The Biden administration has reimposed crushing oil sanctions on Venezuela, condemning President Nicolas Maduro’s attempts to consolidate his rule after the United States eased restrictions in a bid to shore up fading hopes of a democratic opening in the OPEC nation.
A senior US official, discussing the decision with reporters, said any US company investing in Venezuela would have 45 days to wind down operations to avoid adding uncertainty to global energy markets.
“Nicolas Maduro and his representatives have not fully met the commitments made under the electoral roadmap agreement,” said US Department of State spokesman Matthew Miller.
In October, the US exempted Maduro’s government from sanctions on its state-owned oil, gas and mining sectors after it agreed to work with opposition members to hold free and competitive presidential elections this year.
“We are concerned that Maduro and his representatives 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 civil society,” Miller added.
Nicolas Maduro has scheduled elections for July and invited international observers to monitor the vote, but his inner circle has used the ruling party’s complete control over Venezuela’s institutions to undermine the agreement. Actions include barring his main rival, former lawmaker Maria Corina Machado, from registering her candidacy or that of a designated alternative. In addition, numerous government critics, including several Machado aides, have been jailed over the past six months.
It remains to be seen what impact this return will have on Venezuela’s long-struggling oil and gas industry – and whether it will put pressure on Maduro to offer a more level playing field for elections, while US oil companies operating in Venezuela will have to struggle to get special permits.
Despite, by allowing Venezuela to ship oil directly instead of going to middlemen charging huge fees, the Maduro government was able to increase oil revenues and raise much-needed cash during the six months of easing US sanctions.
Experts say the Biden administration, because of its frustration with Maduro, is now unlikely to return to the failed “maximum pressure” campaign tried during the Trump administration, which only strengthened the leftist leader’s position, experts say.
“It has become impossible for the White House to pretend that the Maduro government in any way was complying – or even intended to comply – with the implicit deal in the partial lifting of sanctions,” said Christopher Sabatini, a research fellow at the Chatham House in London.
Opinion polls show that a majority of Venezuelans would remove Maduro from office. Many regional leaders, including the leftist presidents of Colombia and Brazil, have joined the US in criticising the failure of Maduro’s government to live up to its commitments and allow competitive elections.
