U.S. drafting proposal to ease sanctions on Venezuela’s oil sector

U.S. officials are reportedly working on a proposal to ease sanctions on Venezuela’s oil sector, allowing more companies and countries to import Venezuelan crude oil. This proposed easing of sanctions would be contingent on Venezuela moving toward holding a free and fair presidential election. Sanctions were imposed on Venezuela’s oil sector following President Nicolas Maduro’s disputed 2018 reelection, which many Western nations deemed fraudulent.

The U.S. government has previously used the prospect of easing sanctions as an incentive for negotiations, although only a few authorizations have been granted, including one to Chevron, which has been allowed to expand operations in Venezuela and export oil to the United States.

The Biden administration has indicated that sanctions relief for Venezuela could be considered if the country takes significant steps to restore democracy, including holding free and fair elections. However, the White House spokesperson noted that Venezuela has not yet met the necessary conditions to restore democracy.

Under the current proposal, the U.S. is considering a structured approach to reframe oil sanctions on Venezuela. This could enable European and other regions to resume imports of Venezuelan oil, provided certain political demands, including a presidential election, are met. The proposed framework would likely maintain restrictions on trading Venezuelan oil with countries such as China, Iran, and Russia, which are already under separate U.S. sanctions.

While an early version of this proposal was reportedly rejected by Dinorah Figuera, the head of Venezuela’s opposition-led National Assembly, due to concerns about the lack of concrete steps taken by Maduro towards fair elections, this type of negotiation tool could be revisited in future talks with Maduro’s representatives.

Venezuela has faced significant political and economic challenges in recent years, and the situation has been complicated by international sanctions. The possibility of easing sanctions on the oil sector could be a pivotal point in ongoing negotiations and efforts to restore political stability and economic growth in the country.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

France’s Orano suspends uranium processing operations in Niger

French nuclear group Orano SA is suspending uranium ore processing at one of its facilities in Niger due to international sanctions against the military junta. This move could potentially tighten supplies of uranium used to fuel nuclear reactors in several countries.

India sets emission rule for green hydrogen classification

The Indian government has established a crucial emissions limit for the production of “green” hydrogen from renewable sources. The Ministry of New and Renewable Energy announced that in order to be classified as “green,” every kilogram of hydrogen produced should have emissions limited to two kilograms of carbon dioxide. This move aims to provide clarity to the green hydrogen production landscape in India.

U.S. considering historic arms deal with Vietnam

The Biden administration is engaging in talks with Vietnam over what could materialize into the largest arms transfer in history between the two erstwhile Cold War rivals. This potential landmark deal could mark a significant development in the increasingly strategic partnership between Washington and Hanoi.

Stay informed