1697674484 Biden lifts sanctions on Venezuelan oil gas and gold after

Biden lifts sanctions on Venezuelan oil, gas and gold after agreements with opposition

Biden lifts sanctions on Venezuelan oil gas and gold after

True to its carrot and stick policy towards Venezuela, the United States has decided to ease sanctions against the oil, gas and gold sectors, a senior official reported in a phone call with journalists this Wednesday. The decision by President Joe Biden’s government is a response to the political agreement between representatives of Nicolás Maduro’s government and the opposition’s Unity Platform to respect the constitutional calendar and hold elections next year. The partial lifting of sanctions has immediate effect, but in the case of oil and gas it is only temporary, until six months in the future, and will only be extended if the Maduro government continues to take steps to restore democracy.

“The ultimate goal of our sanctions is to bring about positive behavior change. As for Venezuela, the United States has used sanctions to encourage parties to take concrete measures to restore democratic order in the country. “In response to the positive changes announced yesterday, we are now issuing temporary and limited permits, primarily in the oil and gas sector,” a U.S. government source said on condition of anonymity.

This is a partial elevator. Other sanctions and restrictions imposed by the United States against Venezuela remain in effect and Joe Biden’s administration retains the authority to suspend all permits if Maduro and his proxies fail to fulfill their obligations, the same source added. “We remain firmly committed to the Venezuelan people and will continue to work in the international community to support the strengthening and restoration of democracy so that Venezuelans can rebuild their lives in their country,” he said.

“The Treasury Department stands ready to modify or revoke authorizations at any time if Maduro’s representatives fail to meet their obligations,” Treasury Undersecretary for Terrorism and Financial Intelligence Brian E. Nelson said in a statement. “We are on the side of the Venezuelan people and support Venezuelan democracy,” he added.

Specifically, the Treasury Department’s Office of Foreign Assets Control (OFAC) approves all transactions related to operations in the oil and gas sector in Venezuela for six months, including the approval of ordinary and necessary financial transactions with certain affiliated blocked Venezuelan banks. with the oil and gas sector. Thus, the production, extraction, sale and export of oil or gas from Venezuela and the supply of related goods and services are permitted; the payment of invoices for goods or services related to activities in the oil or gas sector in Venezuela; new investments in sector operations in the country and the supply of Venezuelan oil and gas to creditors of the Government of Venezuela, including those of Petróleos de Venezuela SA (PdVSA), for the purpose of debt repayment.

The measure is a relief for foreign companies operating in Venezuela, such as the Spanish Repsol or the Italian ENI, which had to compensate in order not to violate the sanctions. The increase in crude oil supply in the international market could also lead to reduced price pressure, particularly at a time of instability in the Middle East.

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In addition, a second general license will be issued authorizing operations with Minerven, the Venezuelan state-owned gold mining company, which the U.S. Treasury Department says will reduce gold trading on the black market.

Restrictions on Americans purchasing certain government bonds and PdVSA-issued bonds or stocks in the secondary market will also be lifted. The ban on trading in the primary Venezuelan bond market remains in place. According to the Treasury Department, this would have the positive effect of eliminating harmful actors in this market and would have negligible financial benefit to the Venezuelan regime.

The US has taken precautions so that the lifting of sanctions does not result in Russian companies or investments benefiting. The sanctions against Venezuela in connection with Iran have not been lifted either.

One of the points of the agreement signed in Barbados by the government and the opposition stipulates that “the approval of all presidential candidates and political parties” will be encouraged to participate in the presidential election, but warns that this “will take so long. “since they comply with the requirements established by law.” This slogan maintains the possibility that vetoes will be used to prevent the registration of candidates like María Corina Machado, disqualified for 15 years and practically the winner of the opposition primaries that took place will take place this Sunday.

Although the head of the Chavista delegation that traveled to Barbados, Jorge Rodríguez, said that someone who is disqualified “cannot be a candidate,” a senior U.S. government official pointed out that Washington made this clear to the Venezuelan government “Very clearly expressed” that “in order for Venezuelans to hold democratic elections, it is important that all candidates have a path to be admitted.” He added that he hoped to see progress before the end of November.

Deportation of immigrants

In parallel, this Wednesday the government of Joe Biden chartered the first deportation flight for Venezuelan immigrants who had crossed the US border without authorization, the implementation of which was negotiated in parallel with the lifting of sanctions against the energy sector. The Biden administration believes that the ability to directly return immigrants to Venezuela is essential to preventing their arrival.

“Today, the United States, under the direction of the Department of Homeland Security (DHS), in coordination with Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection, facilitated the first charter flight to Venezuela as part of other routine ICE deportation flights .” carried out throughout the hemisphere and around the world. “DHS continues to enforce the immigration laws of the United States while increasing consequences for those who cross our border illegally,” the immigration agency said in a statement.

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