After the United States decided to reimpose restrictions on Venezuela’s oil sector, President Maduro warned of consequences for U.S. interests.
The revoked license, which previously allowed Venezuela to freely export and invest in its oil sector, will now affect its crude and fuel sales, requiring individual U.S. approvals for deals.
The decision not to renew the license came because President Maduro did not make progress on electoral reforms agreed upon with opposition leaders.
Maduro criticized President Biden’s administration for carrying out its threat of coercion, emphasizing Venezuela’s commitment to its chosen path.
Originally designed to ease oil sanctions over five years, the revoked license has been replaced with a stricter version, prompting companies to wrap up pending transactions within 45 days.
Although some oil supertankers were able to leave after the license was revoked, others may need individual U.S. approvals to complete purchases.
Venezuelan officials argue that while the sanctions had minimal domestic impact, they hindered efforts to normalize bilateral relations and affected U.S. interests in Venezuela’s oil industry.
President Maduro (Via Joe Conway/Getty Images)
The U.S. plans to consider specific requests for authorization for business with Venezuela, maintaining previous authorizations for companies like Chevron, Repsol, and Eni.
There are uncertainties about what transactions will be allowed, raising concerns about the future of bilateral oil trade.
Despite progress in controlling inflation, there are concerns about future economic stability. The expiration of License 44 represents a setback from Biden’s policy of engagement with Maduro.
As Venezuela’s opposition addresses candidate selection for the upcoming presidential election, the removal of significant U.S. sanctions relief highlights geopolitical tensions. Analysts predict that stagnant oil exports and production will affect Venezuela’s economic recovery efforts.
