The Biden administration has eased sanctions on Venezuela’s oil and gas sector in response to a 2024 election deal between the Venezuelan government and the opposition. The U.S. Department of the Treasury issued General Licenses allowing transactions in Venezuela’s oil and gas sector and gold sector, as well as lifting the ban on secondary trading. However, the Treasury Department stated that these authorizations can be amended or revoked if President Maduro’s representatives fail to fulfill their commitments in the deal with the opposition.
The changes include the issuance of a six-month general license for Venezuela’s oil and gas sector and another general license for dealings with Minerven, the state-owned gold mining company. Additionally, the Treasury removed the ban on secondary trading of certain Venezuelan sovereign bonds and state-run oil company PDVSA debt and equity. However, the ban on trading in the primary Venezuelan bond market remains in place.
The U.S. State Department confirmed that it was proceeding with broad sanctions relief but would reverse these steps if Maduro’s government did not lift bans on opposition presidential candidates and release political prisoners. Maria Corina Machado, the frontrunner in an opposition primary, is currently barred from office for 15 years.
These moves by the U.S. follow months of negotiations aimed at democratic elections in Venezuela. The Biden administration’s approach marks a departure from the “maximum pressure” campaign pursued by former President Donald Trump. It signifies increased engagement with Maduro on various issues, including energy and migration.
The article was written by Matt Spetalnick and edited by Josie Kao and Lisa Shumaker. Additional reporting was done by Marianna Parraga, Mayela Armas, Vivian Sequera, and Deisy Buitrago. The article adheres to the Thomson RushHourDaily Trust Principles.
