The U.S. President Joe Biden‘s administration may consider reimposing oil sanctions on Venezuela, as President Nicolas Maduro has allegedly not fulfilled his commitments regarding free and fair elections.
What Happened: The U.S. is on the brink of reinstating oil sanctions on Venezuela, reported Reuters. The decision is expected to be made on Thursday, with the current six-month license, which provided partial sanctions relief, set to expire just after midnight.
The Biden administration has been vocal about the possibility of reintroducing punitive measures on Venezuela’s oil and gas sector unless Maduro fulfills his promises.
These include allowing the opposition to field a candidate of its choice in the Jul. 28 election. Despite some compliance from Maduro’s government, the U.S. is unlikely to extend the sanctions relief.
People familiar with the matter in the report suggest that the Biden administration will likely refrain from fully reinstating the “maximum pressure” campaign implemented by former U.S. President Donald Trump.
“International companies continue coming to Venezuela,” Venezuelan Oil Minister Pedro Tellechea said in Caracas. “With or without sanctions, Venezuela will be respected.”
Why It Matters: The potential reimposition of U.S. sanctions on Venezuela’s oil and gas sectors could have significant implications for the country’s oil revenue, energy investments, and domestic fuel supply, as per industry experts.
The U.S. had eased oil sanctions on Venezuela in October following an agreement between its government and political opposition.
Meanwhile, the potential move by the U.S. has been compared to the situation in Venezuela by Kevin O’Leary, the Chairman of O’Leary Ventures. O’Leary has expressed concern over the potential seizure of Donald Trump‘s assets, likening it to a situation in Venezuela.
The potential move could have significant implications for global oil prices and the flow of Venezuelan migrants to the U.S.-Mexico border, according to the report.
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