The Biden administration is easing multiple oil and gas sanctions on Venezuela after the nation’s socialist government and opposition agreed to abide by certain measures as part of efforts to ensure democratic elections next year, the U.S. Department of the Treasury’s Office of Foreign Assets Control announced on Oct. 18.
“The United States welcomes the signing of an electoral roadmap agreement between the Unitary Platform and [Venezuelan leader Nicolás] Maduro’s representatives,” Brian Nelson, the Treasury Department’s undersecretary for terrorism and financial intelligence, said in a statement announcing the partial easing of the sanctions.
“Consistent with U.S. sanctions policy, in response to these democratic developments, the U.S. Department of the Treasury has issued General Licenses authorizing transactions involving Venezuela’s oil and gas sector and gold sector, as well as removing the ban on secondary trading.”
Venezuela has been under significant sanctions imposed by then-President Donald Trump in 2019 in response to Mr. Maduro’s corruption. However, the Biden administration has sought to improve relations with the South American nation, which is home to the world’s largest proven oil reserves.
According to the statement, the Treasury Department has issued a six-month general license that would temporarily authorize transactions involving Venezuela’s oil and gas sector.
The department, however, stressed that the license will be renewed only if Venezuela “meets its commitments” under the electoral roadmap as well as “other commitments” in regard to Americans who are wrongfully detained there.
What’s in the Deal?
At least four Americans are currently being detained in Venezuela.The Treasury Department on Oct. 18 also issued a second general license authorizing dealings with Minerven—the state-owned gold mining company—which officials said would have the effect of reducing black-market trading in gold.
Additionally, the department said that it had removed the secondary trading ban on certain Venezuelan sovereign bonds and state-run oil company PdVSA (Petróleos de Venezuela S.A.) debt and equity.
“The ban on trading in the primary Venezuelan bond market remains in place. Treasury assesses that this, too, would have the positive effect of displacing nefarious players in this market, and with negligible financial benefit to the Venezuelan regime,” officials said.
The announcement regarding the partial easing of sanctions came after Mr. Maduro’s government and the Unitary Platform—a U.S.-backed faction of the opposition—on Oct. 17 signed a deal agreeing to allow international observers to monitor elections in the country that are scheduled to take place in the second half of 2024.
Under the deal, which was signed in Barbados, both parties also agreed that each side may choose its 2024 candidate according to its own internal rules.
However, under the deal, the parties didn’t agree to reinstate opposition candidates who had been barred from public office, including Oct. 22 primary frontrunner María Corina Machado.
Deal Marks ‘Concrete Step’
The deal also didn’t mention the release of political prisoners, the BBC reported.Still, in a statement on Oct. 17, Secretary of State Antony Blinken heralded the agreement as a “concrete step toward resolution of Venezuela’s political, economic, and humanitarian crisis and urged the country to release all wrongfully detained U.S. nationals as well as Venezuelan political prisoners.”
Mr. Blinken noted that other U.S. sanctions and restrictions on Venezuela remain in place for now.
He also stressed that the United States and the international community will “closely follow” the implementation of the so-called electoral roadmap signed this week, adding that the U.S. government “will take action if commitments under the electoral roadmap and with respect to political prisoners are not met.”
Additionally, the United States expects Venezuela, before the end of November, to define a specific timeline and process for the expedited reinstatement of all candidates.
“All who want to run for President should be allowed the opportunity, and are entitled to a level electoral playing field, to freedom of movement, and to assurances for their physical safety,” Mr. Blinken said, adding that the United States “remains firmly committed to the Venezuelan people” and will continue to work with the international community to “support the restoration of democracy and the rule of law so that Venezuelans can rebuild their lives and their country.”
“The United States stands with the Venezuelan people and actors who want a democratic future,” he said.
