US reimposes oil sanctions against Venezuela over election concerns

Move in US election year could push up oil prices, but Washington says Maduro has not made promised electoral reforms. “ Nicolas Maduro and his representatives have not fully met the commitments made under the electoral roadmap agreement,” said US Department of State spokesperson Matthew Miller. “Therefore, General License 44 – which authorised transactions related to the oil and gas sector with Venezuela – will expire after midnight and not be renewed.” As the clock ticked down on the deadline, the US Treasury Department announced on Wednesday that it had issued a replacement licence giving companies 45 days to “wind down” their business and transactions in the OPEC country’s oil and gas sector. The reimposition of sanctions means that Venezuela’s fuel sales are expected to take a major hit, while US oil companies operating in Venezuela will have to scramble to seek special authorisations. “Venezuela is ready to secure the stability of global oil markets that we need so much.” Economic blowback for the US While hitting the Venezuelan economy, the US sanctions also carry risks for Biden as he runs for re-election since they could result in a jump in domestic oil prices or pressure from Venezuela’s government leveraging its migration policy.