US places Sanctions on Venezuela’s oil and gas sector once again

The US Department of State has announced that it will be reimposing sanctions on Venezuela, by refusing to renew General License 44, thus pressurizing the oil and gas sector in the nation.

This decision comes on the back of the Maduro government’s ban on the candidacy of María Corina Machado, for the presidential elections coming up later this year.

Machado won the presidential primary elections with 90% of the votes going in her favour, despite a ban on her candidacy being announced. Machado is seen as a part of the US backed opposition party and has stood against the incumbent Maduro government on multiple issues.

According to the United States, this decision by Venezuelan authorities goes against the Barbados Agreement signed between Representatives of Nicholas Maduro and the Unitary Platform last October.

This agreement was the basis for the United States to issue General License 44, which lifted the sanctions on Venezuela’s oil and gas sector, providing much needed relief to the industry and the nation.

Yet, Venezuela has gone ahead and not only banned the primary candidate who is to stand against Maduro in the upcoming elections but also arrested members of the opposition camp, raising serious doubts about their commitment to conduct fair elections this year.

The General License expires on April 18, 2024, which will place Venezuela under significant pressure once again by stalling any developments made in the oil and gas sector. The nation has some of the largest reserves of oil and gas in the world but has been unable to reap the economic and social benefits of bolstering the industry due to sanctions imposed by the United States for over a decade.

The United States has reiterated its commitment to help open a dialogue between both parties and wants to safeguard the democratic interests and aspirations of the people of Venezuela.

Having said that, the United States apparatus is also revoking General License 43 and giving US entities a span of fourteen days to cease transactions with Minerven, Venezuela’s state-owned gold mining company.

The United States has also said that it will continue to interact with democratic elements in Venezuela and other international partners to encourage the political apparatus to return to the tenants of the Barbados Agreement.

According to the Unitary Platform and its allies, the electoral stipulations agreed upon in Barbados remain the most plausible mode for resolving the economic, political and humanitarian issues that Venezuela is facing.

The primary objective remains to get President Maduro and his allies to accept the opposition’s candidate and allow said candidate to contest in the 2024 presidential elections.

Venezuelan authorities on the other hand, have said that the United States is blackmailing Venezuela with sanctions and the subsequent implications of reimposing them.

Vice President Delcy Rodriguez has warned that such actions could put an end to the deportation flights for Venezuelan migrants who have been held in the United States, adding another layer of complexity to the matter.

She wrote the following on Twitter to clarify the government’s stance on the matter, “All of Venezuela rejects the rude and improper blackmail and ultimatum expressed by the US government.”

“If they take the wrong step of intensifying the economic aggression against Venezuela … as of February 13 repatriation flights for Venezuelan migrants would be immediately cancelled.”

Rodriguez added that the government of Venezuela will also revisit its stance on other areas in which the nation is cooperating with the Unites States and make use of any countermeasure at its disposal if its oil and gas industry is put under pressure once again.

The US State Department has also delineated its thoughts on the issue, stating the following, “Actions by Nicolas Maduro and his representatives in Venezuela, including the arrest of members of the democratic opposition and the barring of candidates from competing in this year’s presidential election, are inconsistent with the agreements signed in Barbados.”

Adding that, “Absent progress between Maduro and his representatives and the opposition Unitary Platform … the United States will not renew the license when it expires on April 18.”
Despite this, Venezuela’s Oil Minister Pedro Tellechea, has said that the nation is prepared for all possibilities, including the reimposition of US Sanctions on Venezuela’s oil and gas exports.

He stated the following, “The US would also feel the effect of any reimposed energy sanctions on Venezuela. The country will not kneel down just because someone tried to dictate the countries with which it can do business.”

This strong stance by Venezuela, coupled with the pressure that comes with the sanctions, has led to the situation between both nations become tense. With neither side seemingly prepared to make room for the demands of the other, it is likely that that they will remain at loggerheads for the time being.

This would mean the nullification of the progress that the United States and Venezuela have made recently, in terms of the diplomatic relations between them.

It is also important to note that the economic and social impact of the sanctions being reimposed will have a drastic effect on Venezuela and is likely to add to the discontent of the general public.

In all probability, Venezuela will have to roll back its ban on Machado’s presidential candidacy, or suffer the consequences of the sanctions. Failing to adhere to the sanctions would place Venezuela in direct opposition to the United States, which would be a difficult stance to justify from the government’s perspective.