The United States announced this Wednesday that it is partially reversing the relief of sanctions on Venezuelan oil and gas, accusing the president of Venezuela, Nicolás Maduro, of fail to fulfill their electoral commitments with the disqualification of the opposition candidate María Corina Machado.

The Treasury Department decided not to renew the relief that expires midnight and set a deadline of May 31 for foreign companies to halt all oil and gas production and export operations they have had over the last six months. From now on, companies that want to do business with the state oil company Petróleos de Venezuela (PDVSA) They must request individual authorizations from the US Treasury that will be evaluated on a case-by-case basis.

Last October, Joe Biden’s Administration issued General License 44, which for six months has lifted sanctions on Venezuelan oil and gas, as an incentive for Maduro to comply with the Barbados Agreements agreed with the anti-Chavista opposition for the holding democratic and competitive elections.

But María Corina Machado, the opposition’s favorite candidate, has been disqualified from running in the elections on July 28 and the electoral authorities did not allow the registration of his replacement, Corina Yoris. The United States has also reported a series of arrests of politicians and activists in Venezuela.

What is expected for the Venezuelan economy with these sanctions?

What is expected for Venezuela is that there will be a impact on economic matters because oil revenues will decrease.

However, President Nicolás Maduro has been emphatic in pointing out that Venezuela will continue its economic growth of up to 8%despite the sanctions.

“Last year we grew 5.5%, this year we are going to grow no less than 8%. So We do not depend on you, gringos. By wanting to hurt us, you hurt yourself. We are going to move forward with a license, without a license. Us we are not a gringo colony“We are not your colony,” said Nicolás Maduro.

What does the end of license 44 mean?

The end of General License 44 means that all activities that were being carried out under this permit must be closed in the next 45 days and that new operations are no longer permitted. Instead, the US Treasury will issue License 44A, which states that companies have to apply for specific permits to do business in Venezuela’s oil and gas sector, which will be evaluated on a case-by-case basis.


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