Venezuela’s oil and gas sector will face new sanctions as the US has announced that it will not renew the relief of sanctions against it. This decision was made due to the allegations against Nicolás Maduro, who failed to fulfill his electoral commitments by disabling the main opposition candidate, María Corina Machado.
The Treasury Department announced that the relief, which expires at midnight, will not be renewed, and foreign companies will have until May 31 to cease all Venezuelan oil and gas production and export operations. Companies looking to do business with Venezuela’s state-owned Petróleos de Venezuela (PDVSA) must now request individual authorizations from the US Treasury on a case-by-case basis.
The reimposition of sanctions comes after Venezuela expanded business with foreign companies during the six-month relief period. Despite concerns about increased migration to the US and higher gasoline prices, the US is committed to continuing talks with Maduro’s representatives, the opposition, and regional governments to uphold the Barbados Agreements for competitive elections in Venezuela. The move aims to put pressure on Maduro to comply with agreements signed with the opposition for democratic and competitive elections.