Page 13 - NorthAmOil Week 02 2021

NorthAmOil COMMENTARY NorthAmOil

What’s next for the Venezuelan

sanctions regime?

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

restrictions, but Guaido will continue to play a role in US policy discussions

VENEZUELA-US VENEZUELA’S political scene has become Holding on to power
more tumultuous since the presidential election Despite these challenges, though, Washington’s
WHAT: held in December 2018, which saw the incum- efforts to oust Maduro never succeeded.
The opposition leader bent Nicolas Maduro gain a second term amidst Instead, the Venezuelan president managed
has lost ground, despite widespread claims of voter fraud. Maduro’s main to sideline Guaido and his allies. In January
the Trump team’s efforts critic was opposition leader Juan Guaido, who 2020, he set up a new legislative body to replace
to discourage trade in declared the vote illegitimate in early 2019 and the opposition-led National Assembly.
Venezuelan oil. assumed the post of interim president. In response, opposition deputies refused to
Shortly thereafter, the US government, a recognise the new body, also called the National
WHY: long-time critic of Venezuela’s socialist regime, Assembly. They continued to meet throughout
President-elect Biden backed Guaido’s claim to power and imposed the year and proclaimed themselves to be the
now has more incentive stricter sanctions on Caracas, expanding trade country’s only legitimate representatives. How-
than ever to reverse restrictions to include the national oil company ever, they did not accomplish much.
course. (NOC) PdVSA. This move caused great finan- Then in December 2020, pro-government
cial hardship, as it severely curtailed PdVSA’s candidates won a majority in parliamentary
WHAT NEXT: ability to export crude oil, the country’s main elections for Maduro’s National Assembly, and
Guaido will continue source of hard currency revenues. the opposition’s unofficial referendum on the
to play a role in policy And the hardships only increased after the ouster of the government came to nothing.
discussions, owing to his administration of US President Donald Trump
success in taking control expanded the range of the sanctions regime to Downgrade of recognition
of Citgo. cover financial institutions, shipping compa- Guaido’s fortunes have taken a turn for the worse
nies and other entities involved in Venezuelan since the December vote.
oil exports. As a result of these moves, PdV- On January 5, the EU effectively withdrew
SA’s ability to secure the parts and equipment its recognition of the opposition leader as the
needed to keep its production, processing and legitimate president of Venezuela. Josep Bor-
refining facilities in good working order was rell, the union’s top foreign official, said last
severely impeded. Accordingly, crude output week that Brussels no longer intended to treat
plummeted and domestic fuel shortages became Guaido as one of the prominent political fig-
common. ures with whom it engaged in Caracas, even

Juan Guaido (left)
declared himself interim
president in 2019 but
Nicolas Maduro (right)
managed to cling on to
power.

Week 02 14•January•2021 www. NEWSBASE .com P13