Venezuela’s oil and gas sector will face new restrictions following the United States’ decision to partially reverse sanctions. The Treasury Department announced on Wednesday (17) that it will not renew the relief, which expires at midnight, and foreign companies must now request individual authorizations from the US Treasury on a case-by-case basis before engaging in business with Venezuela’s state-owned Petróleos de Venezuela (PDVSA).
The reimposition of sanctions comes after Venezuela expanded business with foreign companies during the six-month relief period. However, concerns about increased migration to the US and higher gasoline prices have prompted Washington to take this action. The 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 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 imposed new restrictions on business dealings with Venezuela’s oil and gas sector.
The US intends to issue License 44A instead, which will require specific authorizations for companies to do business in this sector. These authorizations will be evaluated on a case-by-case basis, and Washington reserves the right to deny licenses that may conflict with US national security and foreign policy interests. Despite this move, Washington remains committed to continuing talks with Maduro’s representatives, the opposition, and regional governments to uphold the Barbados Agreements for competitive elections in Venezuela.
