US Resumes Sanctions on Venezuela, Oil Sector May Follow – Reuters

By Matt Spetalnick and Vivian Sequera

WASHINGTON/CARACAS – On Monday, the U.S. began reinstating sanctions on Venezuela, with a source from the Biden administration indicating that the lifting of restrictions on the oil industry may be allowed to lapse. This decision follows the Venezuelan Supreme Court’s upholding of a ban that prevents leading opposition candidate Maria Corina Machado from participating in the upcoming presidential elections.

In October, the U.S. had provided some sanctions relief to Venezuela in light of an agreement for elections scheduled this year. However, this relief was contingent upon President Nicolas Maduro’s administration releasing certain opposition-linked and American detainees while making progress in removing barriers for various opposition figures.

Despite Venezuela’s execution of a prisoner swap in December, the Supreme Court, aligned with Maduro, sustained the ban on Machado, asserting that she supported sanctions and a U.S.-backed interim opposition government, which the Maduro administration blames for the loss of Venezuelan foreign assets. On the same day, several opposition members were confirmed to have been arrested.

In the initial reinstatement of sanctions, the Treasury Department announced that U.S. entities engaged in transactions with the state-owned gold mining company Minerven have until February 13 to cease their operations. This announcement came shortly after a Biden administration official stated that the Treasury’s general license allowing for oil industry dealings would not be renewed on April 18 if Machado and other opposition figures remained barred from running.

The official emphasized, "Unless Maduro and his representatives are able to get back on track, specifically regarding the allowance of all presidential candidates to participate in this year’s election, we will not renew the general license that provides relief to Venezuela’s oil and gas sector."

The U.S. is also contemplating additional unspecified sanctions against the Venezuelan government.

White House national security spokesman John Kirby remarked that U.S. actions would hinge on the Maduro government’s decisions. He stated, "They’ve got till spring to honor their commitments. They’ve got decisions they must make before we evaluate any actions."

Machado, a 56-year-old industrial engineer who garnered significant support in an October primary vote, declared she would not step aside for a replacement. "There is no retreat. We have a mandate, and we will fulfill it," she asserted during a press conference in Caracas. She described the court ruling as a "judicial crime" and acknowledged the challenges ahead but remained positive about the prospect of elections this year.

Jorge Rodriguez, a lawmaker and part of Maduro’s negotiating team with the opposition, stated that if Washington pursued "any aggressive action," Venezuela’s response would be "serene, reciprocal and energetic."

Maduro echoed similar sentiments during his weekly television broadcast on Monday evening, though he did not directly address the decision regarding Minerven.