Page 4 - LatAmOil Week 02 2021

LatAmOil COMMENTARY LatAmOil

(Photo: Presidential Press Service)

What’s next for US sanctions?

The incoming Biden administration is likely to take a softer approach to restrictions

on trade with Venezuela, but Guaido will continue to play a role in US policy discussions

VENEZUELA’S political scene has become cover financial institutions, shipping compa-
more tumultuous since the presidential election nies and other entities involved in Venezuelan
WHAT: held in December 2018, which saw the incum- oil exports. As a result of these moves, PdV-
The opposition leader bent Nicolas Maduro gain a second term amidst SA’s ability to secure the parts and equipment
has lost ground, despite widespread claims of voter fraud. Maduro’s needed to keep its production, processing and
the Trump team’s efforts main critic was opposition leader Juan Guaido, refining facilities in good working order was
to discourage trade in who declared the vote illegitimate in early 2019 severely impeded. Accordingly, crude output
Venezuelan oil. and assumed the post of interim president. plummeted and domestic fuel shortages became
Shortly thereafter, the US government, a common.
WHY: long-time critic of Venezuela’s socialist regime,
President-elect Biden backed Guaido’s claim to power and imposed Holding on to power
now has a greater incen- stricter sanctions on Caracas, expanding trade Despite these challenges, though, Washington’s
tive to reverse course.
restrictions to include the national oil company efforts to oust Maduro never succeeded.
(NOC) PdVSA. This move caused great finan- Instead, the Venezuelan president man-
WHAT NEXT: cial hardship, as it severely curtailed PdVSA’s aged to sideline Guaido and his allies. In Jan-
Guaido will continue
to play a role in policy ability to export crude oil, the country’s main uary 2020, he set up a new legislative body to
discussions, owing to his source of hard currency revenues. replace the opposition-led National Assembly.
success in taking control And the hardships only increased after the In response, opposition deputies refused to rec-
of Citgo. administration of US President Donald Trump ognise the new body, which was also called the
expanded the range of the sanctions regime to National Assembly.

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