US Sanctions Russian Crude Oil but Eases Sanctions on Venezuelan Crude Oil?

White House Senior Official Meets with Venezuelan Government Officials in Caracas on the 5th

President Joe Biden of the United States [Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Following foreign media reports that a senior White House official met with Venezuelan government officials in Caracas, the capital of Venezuela, on the 5th (local time), there is speculation that the U.S. may be preparing to lift sanctions on Venezuelan oil exports in case it imposes sanctions on Russian oil.

According to sources, Juan Gonzalez, White House Senior Advisor for Latin America, met with Venezuelan government officials in Caracas on the 5th. Neither the U.S. nor the Venezuelan government has officially confirmed the meeting yet.

The news of the meeting between U.S. and Venezuelan government officials was first reported by The New York Times. Another foreign media outlet noted that there are currently no direct flights between the U.S. and Venezuela, but confirmed that a flight departing from Washington airport arrived in Caracas via Miami on the 5th, lending weight to the contact report.

Diplomatic relations between the U.S. and Venezuela were severed in 2019 after the U.S. refused to recognize the re-election of Venezuelan President Nicolas Maduro. Maduro won re-election in the May 2018 Venezuelan presidential election. However, the election was held under circumstances where prominent opposition candidates were under house arrest or imprisoned and unable to participate, leading the Venezuelan opposition as well as the international community, including the U.S., to reject Maduro’s victory and demand his resignation. This eventually led to the closure of the U.S. embassy in 2019 and the severance of diplomatic ties. Since then, the U.S. has imposed sanctions on Venezuelan oil exports to pressure President Maduro.

Experts believe that the White House official’s visit to Venezuela was aimed at easing sanctions on Venezuelan oil exports and appeasing President Maduro. Francisco Rodriguez, a fellow at the Council on Foreign Relations, said, "In the context of an escalating energy crisis due to Russia’s invasion of Ukraine, the Biden administration is likely to adopt a conciliatory stance toward Venezuela and Iran."

Despite unprecedentedly strong financial sanctions imposed by the U.S. and European countries, Russia has not ceased its offensive against Ukraine. In response, the U.S. and Europe are discussing imposing sanctions on Russian oil and natural gas exports. U.S. Secretary of State Antony Blinken said on the 5th that he is actively discussing a ban on Russian oil imports with European allies.

Due to U.S. sanctions, Venezuela’s oil production, which once reached 3 million barrels per day, has dropped to below 1 million barrels per day. With oil exports blocked, Venezuela’s economy has faced a severe crisis. However, President Maduro has been holding on with support from Cuba, Russia, and China. Just days before Russia’s invasion of Ukraine, Russian Deputy Foreign Minister Yuri Borisov visited Caracas.

The Biden administration’s attempt to restore relations with Venezuela, which were severed during former President Donald Trump’s tenure, may face opposition from the Republican Party. Florida Senator Marco Rubio, a Republican, criticized, "President Biden has wanted to do business with Venezuela at all costs, using Russia as an excuse. Biden is not thinking about increasing U.S. oil production but wants to replace the oil of one murderous dictator (Putin) with the oil of another murderous dictator (Maduro)."

This content was produced with the assistance of AI translation services.