Biden Administration Eases Oil Sanctions on Venezuela After Election Negotiations
On Wednesday, October 18th the Biden Administration announced that it is easing sanctions against companies that trade oil produced in Venezuela or invest in its oil industry. The United States has imposed sanctions against the Venezuelan government or individuals for more than 15 years, but significantly tightened them in early 2019 after declaring Maduro’s 2018 victory illegitimate. This new deal comes in response to Venezuela announcing they will allow free elections next year, 2024.
According to the Treasury Department, the sanctions on exports of crude oil and refined petroleum will be lifted for six months, which will allow for the penalties to be swiftly instituted again in Maduro reneging on his promise to let other candidates run in next year's election. This expiration date also allows election specialists and members of the media to monitor the election for fraud. The deal they announced said each side can choose its 2024 candidate according to its internal rules but did not reverse bans on some opposition figures, including Oct. 22 primary frontrunner Maria Corina Machado, that prevent them from holding office. A senior Biden Administration official told the press the “Our ultimate goal with sanctions is to bring positive change in behavior. “The United States government retains the authority to amend or revoke all authorizations should Maduro and his representatives fail to follow through on their commitments.” The Biden Administration has said the goal is to help increase the flow of Venezuelan oil into the global market, and bring down prices.
The reaction to this decision has been especially harsh from Republicans. Sen. Lisa Murkowski of Alaska has criticized Biden for lifting these sanctions but placing a pan on oil production in some of Alaska’s wilderness. Other Republicans have shared similar complaints, Sen. John Barrasso of Wyoming and Sen. Kevin Cramer has released statements saying that President Biden is making a grave error by making deals with Maduro, adding that with Israel under attack, Biden is desperate to sidestep the consequences of his lack of leadership. Sen. Cramer said he plans to introduce a bill that would prohibit the importation of crude oil and fuel from Venezuela, saying “The idea of importing oil from our adversaries is a complete slap in the face of working Americans.” Joining the chorus of unhappy Republicans is Joe Manchin of West Virginia. He was quoted as saying, “On the heels of announcing the smallest five-year offshore oil and gas leasing plan in decades, this administration is turning to Venezuela … one of the world’s dirtiest energy producers and an oppressor of its own people.”
Many Republicans and energy experts have said that loosening the oil restrictions on Venezuela will not help solve the problem of skyrocketing oil prices. According to Reuters, Venezuela exported around 544,000 barrels per day of oil in August, and experts are doubtful much more will be exported. Politico reported that when the news of the Biden Maduro deal broke, the global price of oil per barrel dropped about one dollar. Experts have said that adding Venezuelan supplies to the market is not likely to have any major impact on oil prices.