Latin America Advisor
Energy Advisor
A Publication of The Dialogue
What Effects Might Renewed Sanctions on Venezuela Have?
The Untied States is considering snapping back sanctions on Venezuela’s oil industry if the government does not comply with agreements on free and fair elections later this year. An oil worker in Venezuela is pictured. // File Photo: Venezuelan Government.
The U.S. State Department on Jan. 29 threatened to reinstate sanctions that it had eased in October on Venezuela’s oil industry. The sanctions relief will expire in mid-April unless the government and the opposition makes progress on “allowing all presidential candidates to compete in this year’s election.” The move followed the Venezuelan supreme court’s upholding of a 15-year ban on opposition presidential candidate María Corina Machado holding office. What would reimposing sanctions on Venezuela’s oil industry mean for the country? What are the potential implications for the oil companies currently pursuing business with Venezuela? How difficult would it be for oil companies to wind down operations in Venezuela by mid-April?
-
Javier Corrales, Dwight W. Morrow 1895 Professor of Political Science at Amherst College: “The return of sanctions will hurt the Venezuelan government more than it will hurt foreign oil companies. The companies will survive. Most likely, companies have made or are making preparations for an eventual disruption. The government, in contrast, is likely to be hurt more because it depends heavily on extractivism. The return of sanctions is thus likely to generate a recession. That said, it seems that Maduro has concluded that he prefers an economic contraction than an electoral showdown with Machado. The key lesson since 2018 is that…”
Read More
Top News
Pemex Announces More Ambitious Targets for Carbon Dioxide Reduction
Petrobras Eyes $100 Billion in Investments: CEO
Complete editions of the Energy Advisor are delivered weekly to members of the Dialogue's Corporate Program and other subscribers. Sign up below for a free complimentary preview subscription.
About the Energy Advisor
A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.
Subscribers See all
Staff
Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org
Carl David Goette-Luciak
Reporter
Nili Blanck
Reporter