U.S. Breaks Ties with Venezuela, Announces Return of Oil Sanctions

The United States has announced its decision to not renew licenses for oil and gas granted to Venezuela in exchange for democratic reforms. This move comes after President Joe Biden condemned Hamas’ recent offensive against Israel as an “unprecedented and appalling” attack.

The deadline for Venezuela to retract its veto against opposition figure María Corina Machado, set by Washington, was April. However, President Nicolás Maduro’s steadfastness regarding Machado’s disqualification has led the U.S. Department of State to announce that the ceasefire between both countries is now in jeopardy.

Although Venezuela views this as blackmail, stating that any further economic aggression would result in the immediate suspension of deportation flights for Venezuelan migrants from the U.S. to Caracas, the U.S. insists that Venezuela must uphold its commitment to fair and free elections.

The U.S. urges a return to the agreements made in Barbados, which the Maduro regime claims to be following, while the opposition alleges they have been completely violated. The situation remains volatile, with the risk of the direct dialogue achieved between Washington and Caracas closing once more.

Despite partial achievements, such as the extradition of Alex Saab, a Venezuelan government ally and DEA informant, and temporary sanctions relief, the Maduro government has once again entrenched itself, offering vague concessions to the opposition.

Venezuela’s oil industry, which has been struggling due to years of underinvestment, mismanagement, and corruption, has tried to recover production levels. From a peak of 3.2 million barrels per day, Venezuela dropped to around 400,000 in 2020. This has since increased to about 800,000 barrels per day thanks to the easing of operations for state-mixed companies with Chevron, Eni, and Repsol.

The return of sanctions will have consequences for both countries, as stated by PDVSA President Pedro Tellechea, highlighting that U.S. crude inventories are low. Despite these challenges, Venezuela has managed to control inflation, albeit with a significant contraction in consumption.

Leave a Reply

Your email address will not be published. Required fields are marked *

Pagina web no oficial, para cualquiera consulta rellenar formulario de contacto