What Does the Reimposition of U.S. Sanctions Mean for Venezuela's Oil Industry

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Venezuela,Sanctions,Oil

The reimposition of U.S. sanctions on Venezuela's oil industry in response to anti-democratic actions taken by President Maduro will severely impact the country's economy and crude exports.

At the end of last year, the White House decided to ease sanctions on Venezuelan oil to stabilize oil prices and help the South American country improve its failing economy. The agreement to ease sanctions was dependent on President Nicolas Maduro allowing his political opposition to run in the upcoming elections. After a six-month ease, the U.S. has once again imposed sanctions on Venezuela due to the failure of Maduro to adhere to democratic principles.

These licenses cover a wide range of sectors including investment, authorizing oil exports and imports, exploring for oil and gas, and negotiating contracts and payments. Some companies have had licenses approved by the U.S. government, such as France-based oil producer Maurel & Prom and Spain's Repsol, while others are waiting to hear their fate. Guidance from the U.S.

 

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