Page 6 - NorthAmOil Week 26 2021

NorthAmOil COMMENTARY NorthAmOil

Are US sanctions on Venezuela

likely to be lifted any time soon?

Venezuelan President Nicolas Maduro is showing signs of willingness to make

political concessions ahead of the November elections – and also a determination

to load the dice in his administration’s favour

US-VENEZUELA THE sanctions that the US government has Auspicious timing
imposed on Venezuela and on its national oil In some respects, this is an unremarkable pro-
WHAT: company (NOC) PdVSA are designed to have nouncement. It is completely in line with pre-
Caracas appears to be an economic impact. They aim to discourage vious statements made by US officials on the
taking some steps in the investment and trade on all fronts, and they are conditions for the lifting of sanctions, and it does
direction of freer and designed to wreak particular havoc on the oil not appear to hint at the possibility of changes
fairer elections. industry, which is the main driver of the coun- in policy.
try’s economy. But in other respects, the joint statement
WHY: But the conditions for lifting the sanctions are is notable. What makes it notable is the fact
If it does so, it may political, not economic. Washington has said it that it was issued at a time when the Venezue-
be able to attract the will not lift the trade restrictions until Caracas lan political climate appears to be shifting in
investment that the takes meaningful steps to restore free and fair what US officials might describe as the proper
national oil industry elections. It reiterated that point late last week, direction.
needs so badly. when US Secretary of State Antony Blinken More specifically, the statement came out
joined Canada’s Minister of Foreign Affairs shortly before Venezuelan President Nicolas
WHAT NEXT: Marc Garneau and EU High Representative for Maduro, whose alleged use of fraudulent tactics
US officials should watch Foreign Affairs and Security Policy Josep Borrell to secure re-election in 2018 prompted the US
events in Venezuela in issuing a statement that called for “substan- to tighten sanctions and target PdVSA in early
closely before making a tive, credible advancements to restore core dem- 2019, reached out to US President Joe Biden in
decision on whether to lift ocratic processes and institutions in Venezuela.” an interview with Bloomberg. In the interview,
sanctions In the statement, the three officials declared he called on Biden to normalise diplomatic rela-
that Washington, Ottawa and Brussels were tions and lift trade restrictions – and he did so
“willing to review sanctions policies based relatively cordially, without spending the entire
on meaningful progress in a comprehensive conversation fulminating about US imperialism
negotiation.” and treachery.

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