A six-month reprieve has been ended due to concerns surrounding upcoming presidential elections in the South American country<\/p>\n\n\n\n
The US has reinstated sanctions on Venezuela\u2019s crucial energy industry, over what Washington describes as Caracas\u2019 failure to adhere to democratic principles, as the nation prepares for presidential elections.<\/p>\n\n\n\n
President Joe Biden\u2019s administration said on Wednesday it would not renew a license that expired early on Thursday, and which had partially eased the punitive measures since October, following a US-backed election deal.<\/p>\n\n\n\n
Venezuela\u2019s President Nicolas Maduro and the country\u2019s opposition signed an agreement in Barbados last October to hold free and fair elections, monitored by international observers, and in exchange the US temporarily lifted some of its sanctions on Venezuelan oil, gas, gold, and sovereign debt.<\/p>\n\n\n\n
\u201cNicolas Maduro and his representatives have not fully met the commitments made under the electoral roadmap agreement,\u201d US State Department spokesperson Matthew Miller stated.<\/p>\n\n\n\n
\u201cTherefore, General License 44 \u2013 which authorized transactions related to the oil and gas sector with Venezuela \u2013 will expire after midnight and not be renewed,\u201d he added.<\/p>\n\n\n\n
The US Treasury Department announced on Wednesday that it had issued a replacement license giving companies 45 days to \u201cwind down\u201d their business and transactions in the OPEC member-state\u2019s oil and gas sector.<\/p>\n\n\n\n
Washington has repeatedly threatened in recent months to reinstate energy sanctions unless Maduro made good on his promises.<\/p>\n\n\n\n
Senior US officials reportedly said that Maduro has honored some commitments under last year\u2019s deal, but has failed to meet others, including allowing the opposition to run the candidate of its choice against him in the July 28 election.<\/p>\n\n\n\n
Venezuelan officials have insisted they are ready for any scenario and can weather renewed sanctions.<\/p>\n\n\n\n
\u201cWe are open [for business], willing to keep progressing along with all foreign companies that want to come,\u201d Oil Minister Pedro Tellechea was cited as telling reporters after the US announcement. \u201cVenezuela is ready to secure the stability of global oil markets that we need so much,\u201d the minister stressed.<\/p>\n\n\n\n
According to a recent Reuters report, Venezuela\u2019s oil exports in March soared to their highest level since early 2020 as customers rushed to complete purchases ahead of the predicted expiration of the license.<\/p>\n\n\n\n
Caracas has been under US sanctions for over 15 years. The latest round of restrictions was imposed after Washington refused to recognize Nicolas Maduro as the country\u2019s president following the 2018 election, and instead declared the head of the National Assembly, Juan Guaido, to be the \u2018interim leader\u2019 of the country. In 2019, Guaido called for a popular uprising against Maduro, which ultimately failed. He then moved to live in Miami under US protection.<\/p>\n\n\n\n
Meanwhile, all Venezuelan government assets were frozen in the US and any dealings with US citizens and companies were barred.<\/p>\n\n\n\n
Maduro had previously called for a \u201cnew era\u201d of US-Venezuela relations \u201cbased on respect and collaboration.\u201d Venezuela demands the permanent lifting of all US sanctions against the country, according to the president, who says Caracas has abided by the deal signed in Barbados.<\/p>\n\n\n\n