US to reimpose oil sanctions on Venezuela

The Biden administration is reimposing oil sanctions on Venezuela after President Nicolas Maduro reneged on post-election promises of democratic reforms.

The government will give companies 45 days to “wind down” operations in Venezuela’s oil and gas industry.

“We are concerned that Maduro and his representatives are preventing the democratic opposition from registering candidates of their choice, harassing and intimidating political opponents, and unjustly detaining numerous political opponents,” State Department spokesman Matthew Miller said in a statement on Wednesday. figures and members of civil society.”

In October, the United States offered the Maduro government to lift sanctions on its country-controlled oil, gas and mining industries in exchange for working with opposition members to organize a truly open and competitive presidential election. Maduro’s party, however, manipulated the proceedings, including barring former lawmaker Maria Collina Machado from running.

“It’s impossible for the White House to pretend that the Maduro government is in any way complying with — or even intending to comply with — the implicit agreement to partially lift sanctions,” Christopher Sabatini, a fellow at Chatham House in London, told The Associated Press. “Ignoring this makes the United States appear weak and undermines its credibility in using sanctions against Venezuela and elsewhere.”

Biden aides decided to extend the sanctions amid concerns over whether the move would push up global oil prices or increase the influx of Venezuelan migrants at the U.S.-Mexico border in a presidential election year.

Venezuelan officials say they are ready to impose new sanctions on the oil industry. The easing of sanctions has given the country an opportunity to rebuild its production capacity.

Analysts believe the new sanctions will limit Venezuela’s crude oil production and growth unless separately authorized. For example, Chevron, the last major U.S. oil driller in Venezuela, will not be affected by sanctions due to its independent mandate.

“We are ready for business,” Oil Minister Pedro Tellechea told reporters at state oil company PDVSA’s Caracas headquarters earlier on Wednesday. “Logistically, we will continue to produce.”

Information for this report was obtained in part from Reuters and The Associated Press.