U.S. officials are concerned that reverting to Trump-era sanctions that accelerated the decline of Venezuela’s oil production would raise the price of gas at U.S. pumps and prompt more migration from Venezuela as President Biden campaigns for re-election in November. Restricting Western oil companies would tighten global energy supplies and open the way for Chinese investment in Venezuela, they say.
Biden administration officials have said they didn’t think that the oil sanctions—leveled against Venezuela in early 2019 in former President Donald Trump’s effort to force Maduro from power—was constructive.
The Biden administration said Wednesday it would allow some American and European oil companies to carry on in Venezuela after U.S. efforts to coax President Nicolás Maduro into democratic overhauls by lifting economic sanctions ended in a hardening of his authoritarian regime.
After Maduro violated an October agreement with the U.S. to stage free and fair elections, the White House was under pressure to reimpose sanctions on Venezuela’s lifeblood energy industry.
Under the new guidelines released Wednesday, a number of Western energy companies that entered Venezuela after the U.S. lifted sanctions and issued a six-month general license permitting oil operations are required to apply for individual licenses from the Treasury Department to remain in the country. Without that license, they must close up operations by May 31.
