Biden Administration Eases Sanctions on Venezuelan Oil & Gas Sector

The Biden Administration announced Wednesday the removal of a broad array of sanctions against Venezuela’s oil and gas sector in response to a Tuesday deal between Maduro and his political opponents aimed at fairer elections next year.

• The U.S. Treasury Department suspended for six months measures against Venezuela that had prohibited financial transactions in the country's energy sector.
• The US has left the possibility of withdrawing the eased sanctions if Maduro fails to deliver on his side of the bargain.
• Maduro hailed victory in a televised address, saying he was ready to open "a new era" with the U.S. "Let's turn the page, let's reconstruct relations based on respect, cooperation."
• "Venezuela, with these agreements and decisions, returns to the oil and gas market with force, progressively," Maduro added.
• Under the new guidelines, American and foreign companies will be allowed to produce and export Venezuelan oil and gas and conduct business with state-energy monopoly Petróleos de Venezuela. Transactions with Russian oil companies in Venezuela remain off-limits.
• The easing of sanctions was expected this week but there was little info prior about what shape they would take and they are a lot more expansive than any easing over the last year such as oil-for-debt swaps like that for Chevron.