Topline
The Biden Administration announced it would ease sanctions against Venezuela’s oil and gas sector, a move that could shore up global supply after the country’s leader, Nicolas Maduro, reached a deal with opposition political leaders for the country’s presidential elections in 2024 that the U.S. described as a step towards “democratic order.”
Venezuelan President Nicolas Maduro speaks during a meeting with Saint Lucia’s Prime Minister Philip … [+]
Key Facts
The Treasury Department said it issued a six-month license enabling transactions involving Venezuela’s oil and gas sector—including exports and investments.
The license will be renewed after six months if Venezuela’s government meets its commitments, including the unrestricted participation of opposition leaders in next year’s elections and the release of “wrongfully detained” Americans and political prisoners.
In addition to oil and gas, the deal also lifts a ban on trade involving the state-owned gold mining company Minerven, along with the secondary trading of some Venezuelan sovereign bonds.
In a State Department press briefing, an unnamed administration official said other sanctions and restrictions imposed on Venezuela will remain in place and Washington retains the authority to revoke these concessions if Maduro fails to follow through on his commitments to restoring democracy.
The global benchmark Brent crude oil futures was slightly down around 0.5% $91 per barrel on Thursday but still higher than the around $83 per barrel before outbreak of the war between Israel and Hamas.
Big Number
200,000. That is the additional number of barrels of crude oil that Venezuela will be able to produce per day following the easing of the U.S. sanctions, according to analysts cited by Bloomberg.
Key Background
On Tuesday, the Maduro regime and the U.S.-backed opposition signed a deal outlining a road map for next year’s presidential elections in Venezuela. As part of the deal, which was signed in Barbados, the Maduro government will allow international observers to monitor the elections which will take place in the second half of 2024. The deal, however, stopped short of several other key opposition demands, including the freeing of political prisoners and lifting electoral bans on key opposition candidates. Maduro’s victory in the 2018 election was rejected as a sham and illegitimate by the U.S. and its allies and was followed by harsh sanctions.
Crucial Quote
Commenting on the electoral deal during the State Department briefing, a senior administration official said: “We believe that this roadmap is the most viable path for the people of Venezuela to secure a durable agreement that leads to competitive elections, the restoration of democratic order, and the end to the humanitarian crisis in Venezuela.”
Further Reading
Venezuela’s government and US-backed faction of the opposition agree to work on electoral conditions (Associated Press)
Source: https://www.forbes.com/sites/siladityaray/2023/10/19/us-eases-oil-and-gas-sanctions-against-venezuela-after-maduro-regime-agrees-to-election-roadmap/