US Drafts Proposal To Ease Sanction On Venezuela’s Oil Sector

The US administration is drafting a proposal to ease sanctions on Venezuela’s oil sector, which would allow more countries and companies to import Venezuelan crude oil under the condition that that President Nicolas Maduro will hold a competitive presidential vote in 2024 and free political prisoners according to people with knowledge of the matter.

• The US is considering a specific offer to reframe oil sanctions on the country so crude buyers in Europe and other regions also can resume imports of Venezuelan oil in a structured, organized way, the people said.
• An early version of the proposal was rejected in July by Dinorah Figuera, head of Venezuela's opposition-led National Assembly.
• The preliminary discussions involve senior officials from both nations, including Venezuela’s head of congress Jorge Rodríguez, according to the people.
• “Maduro is highly resistant to holding competitive elections,” said Eurasia Group analyst Risa Grais-Targow.
• Venezuelan production and exports have been stronger this year supported by an easing of US sanction allowing Chevron to increase shipments to the US in return for debt reduction.
• The country’s crude exports in July averaged 877.032bpd in July, up by 22% from June. 1H23 exports averaged 700kbpd compared with 579kbpd a year earlier.