US to Reimpose Oil Sanctions on Venezuela

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Facts

  • The Biden administration has said it won't renew a license to ease oil sanctions on Venezuela, effectively reimposing penalties on the country as the agreement expires on Thursday.1
  • The Treasury Department on Wednesday issued a 'wind-down' authorization to replace General License 44, which was issued last October to ease oil sanctions on Caracas for six months.2
  • According to the White House, the decision is a response to Venezuelan Pres. Nicolás Maduro's failure to hold free and fair elections under international observers — a key part of the 2023 Barbados Agreement.3
  • Maduro's ruling party is accused of undermining the agreement by hijacking Venezuela's institutions, banning his main rival from running for office, and imprisoning several government critics.4
  • Though US firms have until May 31 to wind down their operations in Venezuela, they can apply for specific licenses later, while oil giant Chevron will be allowed extraction operations under a separate license.5
  • Venezuela's Oil Minister Pedro Tellechea said that Caracas will bear the cost of reimposed oil sanctions and 'keep growing with or without the sanctions.'6

Sources: 1Reuters, 2Treasury, 3ABC News, 4US News & World Report, 5Bloomberg and 6CNN.

Narratives

  • Pro-establishment narrative, as provided by New York Times. The Biden administration had no choice but to reimpose oil sanctions on Venezuela, as Maduro failed to uphold his side of October's agreement. The US gave Maduro's government a chance to show that it could embrace democracy and hold free and fair elections, but unfortunately, they botched it. Venezuela has been in crisis for many years now, and the US can't allow Caracas to undermine democracy with impunity.
  • Establishment-critical narrative, as provided by Radio Havana Cuba. The US has continually moved the goalposts, failing to comply with its agreements while using its power and wealth to place blame on smaller countries. The Biden administration wants to inflict economic pain on Venezuelans because of the government's political alliances and seize control of Venezuela's rich oil industry. By reimposing sanctions, both the US and Venezuela will be hurt, and millions of people will suffer.

Predictions