Venezuela Not Meeting Promises, May Lose US Sanctions Relief, US Official Says

A U.S. government official didn’t say for sure whether the Treasury Department will allow a general license involving Venezuela’s state-owned energy company to expire next month, but suggested companies should expect it to lapse if the Venezuelan government doesn’t soon reverse its crackdown on political opposition members.

“The [Nicolas] Maduro regime would have to follow through with certain commitments, including towards free and fair elections, and that has not happened,” said the government official, speaking on background under a policy for certain career personnel at the Bureau of Industry and Security annual conference last week. “It doesn't bode well for following through on commitments on the Venezuela side.”

The U.S. in October lifted certain sanctions on Venezuela’s oil, gas and gold sectors after the country's government and opposition formally agreed to work together on conditions for fair presidential elections (see 2310180070). But after the State Department in January said the Maduro-led regime failed to take steps to hold those elections, the agency said it would be reversing the sanctions relief (see 2401300014). That potentially will include Treasury’s General License 44, which authorizes certain transactions with Petroleos de Venezuela through April 18.

The U.S. official said it has been “clear” Maduro hasn’t met the Biden administration’s conditions for the sanctions relief, pointing to the government's arrest of political opposition figures and its move to block presidential candidate Maria Corina Machado from participating in elections this year (see 2401290048).

“We'll have to see what transpires in these last days and what the next steps are,” said the official, speaking about the Treasury license. “That's my best answer.”