US prepares to reimpose ban on Venezuela’s oil and gas, gold

Last Updated on Tuesday, 30 January 2024, 20:21 by Denis Chabrol

The United States (US) on Tuesday announced it would reimpose sanctions on Venezuela’s oil and gas sector, effectively blocking trade in those hydrocarbons  because the Nicolas Maduro administration has arrested members of the “democratic opposition” and has barred candidates from running in upcoming presidential elections.

Venezuela, in response, said the US action amounted to a deliberate attempt to hit the Venezuelan oil and gas industry but Venezuelans would continue their efforts to recover the Venezuelan economy with its own efforts in national unity.

The US State Department said that unless the situation changes, Venezuela’s state-owned oil company, Petroleos de Venezuela SA and all companies in which it has shares would not be allowed to trade freely in its hydrocarbons.

“Absent progress between Maduro and his representatives and the opposition Unitary Platform, particularly on allowing all presidential candidates to compete in this year’s election, the United States will not renew the license when it expires on April 18, 2024,” the State Department said.

Additionally, the United States said it was revoking General License 43, which authorized transactions involving Minerven – the Venezuelan state-owned gold mining company. U.S. persons will have fourteen days to wind down any transactions that were previously authorized by that license.

The US government said the Maduro administration’s arrest of opponents and the barring of candidates from contesting in this year’s polls “are inconsistent with the agreements signed in Barbados last October by representatives of Nicolas Maduro and the Unitary Platform.

The US said it remains strongly committed to supporting dialogue between the parties and to the aspirations of the Venezuelan people for a democratic future. “We will continue to work with the international community and all peaceful democratic actors across the political spectrum in Venezuela and leverage mechanisms at our disposal to encourage a return to the principles in the Barbados agreement,” the State Department added. 

The Barbados electoral roadmap agreement, according to the Joe Biden administration, remains the most viable mechanism to resolving Venezuela’s longstanding political, economic, and humanitarian crisis and realizing competitive and inclusive elections in Venezuela. The US government stressed that would require Maduro and his representatives upholding the roadmap’s principles and ensuring that opposition political actors have the right to select their candidates for the 2024 presidential election freely.

But Venezuela’s Vice President Delcy Rodriguez called the US’ move “blackmail” and she her government would retaliate by barring repatriation flight with Venezuelans from landing in her country.

“Venezuela rejects the rude and improper blackmail and ultimatum expressed by the US government. If they take the wrong step of intensifying economic aggression against Venezuela, at the request of the extremist lackeys in the country, as of February 13, repatriation flights for Venezuelan migrants would be immediately revoked, and any repatriation mechanism would be reviewed,” she said.