The Biden administration is acknowledging that Venezuelan President Nicolás Maduro has no intention of holding free and fair elections in the foreseeable future.
Six months after lifting U.S. sanctions on Venezuela’s key oil and gas sectors, the Treasury Department announced on Wednesday that it will allow those temporary licenses to expire, citing the failure of Maduro’s government to fulfill its obligations.
The agreement, reached in Barbados last October between Maduro and the united Venezuelan opposition, was simple: to hold transparent elections monitored by international observers. In return, the U.S. temporarily lifted certain sanctions on Venezuela’s oil, gas, gold, and sovereign debt.
This decision marked a significant shift from former President Donald Trump’s aggressive “maximum pressure” approach, with the Biden administration hoping that engaging with Maduro could lead to a political resolution to the crisis in Venezuela, which has driven a fifth of its population into exile.
However, in the months following the agreement, Maduro’s government targeted and detained opposition figures and prevented the opposition’s candidate, Maria Corina Machado, who had won the primary by a large margin, from running for office.
While a senior administration official acknowledged that Maduro had fulfilled some “key commitments,” they highlighted the government’s failure to meet these obligations, which was an understatement.
Both Democrats and Republicans in Congress urged the administration to reinstate the sanctions, as Maduro has shown no interest in holding an election where he would likely face overwhelming defeat.
Despite this, the administration has hesitated due to other priorities such as rising gas prices and the border crisis. Venezuelans have contributed to the surge at the southern border, which has become a major political challenge for Biden, while gas prices have increased by 14% in the past year.
In March, Venezuela’s oil exports reached their highest level since early 2020 as buyers rushed to complete transactions before the sanctions were reinstated. However, Venezuelan oil production has been low due to years of neglect and mismanagement.
While the U.S. plans to reimpose the most significant leverage it had – the oil and gas sanctions – after a 45-day transition period, this is not the end of the road. The administration intends to continue engaging with Maduro in a constructive and discreet manner to steer the election process back on track.
Maduro publicly expressed his willingness to negotiate with Biden this week, stating, “I will never close the door to dialogue with anybody.” Despite the challenges, the opposition remains determined to bring about change in Venezuela.
