The Biden administration has indicated the possibility of reinstating oil sanctions on Venezuela as a response to President Nicolas Maduro’s perceived failure to fulfill commitments for free and fair elections. Unless Maduro makes last-minute concessions, the U.S. is unlikely to extend the six-month license that provided partial sanctions relief to the OPEC member since October. This decision comes after repeated threats to reinstate punitive measures on Venezuela’s crucial oil and gas sector if Maduro did not uphold his promises, including allowing the opposition to field a candidate of its choice in the upcoming July 28 election.
While Maduro’s government has complied with some terms of the agreement reached in Barbados, the potential withdrawal of significant U.S. sanctions relief signifies a significant departure from President Joe Biden’s approach of re-engagement with the Maduro administration. Despite this, the Biden administration is not anticipated to fully return to the “maximum pressure” campaign employed by former President Donald Trump.
The U.S. decision is influenced by concerns about the impact of reimposing sanctions on Venezuela’s energy sector, including the potential for higher global oil prices and increased Venezuelan migration to the U.S.-Mexico border. This consideration is particularly relevant as President Biden seeks reelection in November.
U.S. State Department spokesperson Matthew Miller emphasized the administration’s stance, stating that if Maduro and his representatives failed to fully implement their agreements under the Barbados deal, sanctions would be reimposed. Meanwhile, Venezuelan Oil Minister Pedro Tellechea asserted that international companies continue to engage with Venezuela, emphasizing the country’s resilience in the face of potential sanctions.