US To Reimpose Venezuela Oil, Gas Sanctions: Officials

The US will not renew sanctions relief on Venezuela's energy sector ahead of a critical deadline, senior Biden administration officials announced Wednesday.

The officials said the authorities known as General License 44 will not be renewed ahead of Thursday's cutoff because the Venezuelan government continues to crack down on dissent despite a pledge late last year to institute sweeping political reforms ahead of national elections scheduled for July.

Venezuelan President Nicolas Maduro and his political opposition signed the Barbados Accord in October to lay the foundations for a competitive, free and fair general election.​​​​​​​ In return, the US eased sanctions on Venezuela's oil and gas sectors for six months in an attempt to incentivize Caracas to institute the reforms.

The US recently completed what one official described as a "very careful review" of the promised reforms and determined "that although the Venezuelan authorities have met some key commitments, they've also fallen short in several areas."

"The areas in which they have fallen short include the disqualification of candidates and parties on technicalities, and what we see as a continued pattern of harassment and repression against opposition figures and civil society," said the official, who like two others, briefed reporters on condition of anonymity ahead of the formal announcement.

"We were particularly concerned by the fact that the Venezuelan authorities also blocked the leading opposition candidate, Maria Corina Machado, from running and then also did not allow her designated alternative candidate," he added.

Machado is a former lawmaker in Venezuela's National Assembly and remains the Latin American nation's most prominent opposition figure heading into July's polls.

Machado was elected as the presidential candidate of the opposition following primary nominating contests, but was banned from running by Venezuela's Supreme Justice Tribunal. She named historian Corina Yoris as her replacement after she was disqualified.

But Yoris was prevented from registering with the National Electoral Council ahead of a lapsed deadline. The opposition remains without a candidate for July's election.

Colombian President Gustavo Petro announced earlier this month that he would be taking on the role of mediator between the Venezuelan government and opposition to help broker a long elusive political peace.

The official welcomed Colombia's engagement, saying it could have "a positive impact on the way forward towards a more democratic Venezuela."

He maintained that while the decision has been made not to renew the sanctions relief, the US will continue efforts "to engage in a constructive and in private, pragmatic way to try to move the election back towards a better course."

"There's some near-term decisions that the Venezuelan authorities will be taking, that we will be watching and monitoring very carefully," he said.

Companies will have a 45-day window to wind down operations in Venezuela's oil and gas sectors or risk being exposed to US financial penalties. -