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The Biden administration agreed Wednesday to easing Trump-era sanctions against Venezuela’s oil industry after the country’s leaders signed an agreement on an electoral roadmap expected to lead to more democratic elections in 2024.
The Venezuelan government – led by socialist dictator Nicolas Maduro – signed the agreement, and in return the US Treasury Department’s Office of Foreign Assets Control (OFAC) issued four general licenses that lifted some, but not all, of the sanctions imposed under the Trump administration were suspended in 2019.
“The United States welcomes the signing of an election plan agreement between the Unity Platform and Maduro representatives,” said Brian E. Nelson, Treasury Undersecretary for Terrorism and Financial Intelligence. “Consistent with U.S. sanctions policy, in response to these democratic developments, the U.S. Treasury Department has issued general licenses authorizing transactions in Venezuela’s oil and gas and gold sectors and lifting the ban on secondary trading.”
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On Wednesday, the US Treasury Department issued a six-month general license allowing oil and gas transactions with Venezuela. (Getty Images/Getty Images)
Nelson added that the Treasury Department stands ready to modify or revoke the approvals at any time if Maduro’s government fails to fulfill its democratic electoral obligations.
On Wednesday, the Treasury Department issued a six-month general license to approve oil and gas transactions with Venezuela. A second general license was issued authorizing Venezuela’s state-owned gold mining company Minerven. According to the Ministry of Finance, this will reduce gold trading on the black market.
Two other licenses were amended to lift a secondary trading ban on some Venezuelan government bonds and debt and equity of Petróleos de Venezuela, SA (PdVSA).
A ban on trading in the primary Venezuelan bond market remains in place.
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Venezuelan President Nicolas Maduro (AP Photo/Ariana Cubillos/File/AP Newsroom)
The sanctions were lifted as fighting continued in the Middle East between Israel and Hamas, threatening oil prices and supplies.
In 2019, the Trump administration imposed heavy sanctions on the country’s oil industry following a dispute between Maduro and opposition leader Juan Guaido over the 2018 presidential election. The US government official declared Guaidó interim president of Venezuela.
According to the Energy Information Administration, crude oil imports from Venezuela fell sharply as a result of the sanctions, from 634,000 barrels per day in January 2019 to 11,000 barrels per day in May 2019 and zero barrels per day in June 2019. The US imported 586,000 barrels of oil per day from the country in 2018.
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President Joe Biden (AP Newsroom)
Although the Biden administration has eased sanctions to allow trade between the U.S. and Venezuela to continue, it has also taken steps to curb U.S. oil and gas production and fulfill his campaign promise to “end fossil fuels.” as part of its broader climate agenda. For example, he has restricted the sale of oil and gas leases on federal lands and waters, revoked pipeline permits, and consistently appointed officials throughout his administration who favor green energy over traditional fossil fuels.
If Venezuela still fails to hold more democratic and fair elections, the USA will reintroduce sanctions.
Secretary of State Antony Blinken said in a news release that the U.S. expects Venezuelan officials to provide a concrete timeline and process for expediting the reinstatement of all candidates, adding that anyone who wants to run for president will be given the opportunity will be able to run under equal competitive conditions. You can move freely and are confident in your physical safety.
An oil pump jack sits idle near homes in Long Beach, California. (Mario Tama/Getty Images/File / Getty Images)
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He also said Venezuela must begin releasing all unlawfully detained U.S. citizens and Venezuelan political prisoners. If this does not happen, the procedure is reversed.
“The United States remains firmly committed to the Venezuelan people, and we will continue to work with the international community to support the restoration of democracy and the rule of law so that Venezuelans can rebuild their lives and their country,” Blinken said. “The United States stands with the Venezuelan people and the actors who want a democratic future.”
Thomas Catenacci of Fox News Digital contributed to this report.