The Biden administration agreed to ease Trump-era sanctions on the Venezuelan oil industry Wednesday, after the country’s leaders signed an electoral roadmap agreement expected to lead to more democratic elections in 2024.
The Venezuelan government — led by socialist dictator Nicolas Maduro — signed the agreement, and in turn, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued four general licenses suspending some, but not all the sanctions imposed under the Trump administration in 2019.
"The United States welcomes the signing of an electoral roadmap agreement between the Unitary Platform and Maduro representatives," Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson said. "Consistent with U.S. sanctions policy, in response to these democratic developments, the U.S. Department of the Treasury has issued General Licenses authorizing transactions involving Venezuela’s oil and gas sector and gold sector, as well as removing the ban on secondary trading."
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Nelson added that the Treasury is prepared to amend or revoke the authorizations at any time if Maduro’s government fails to follow through with its democratic election commitments.
On Wednesday, the Treasury issued a six-month general license authorizing oil and gas transactions with Venezuela. A second general license was issued, authorizing Venezuelan state-owned gold mining company Minerven, which the Treasury said will reduce black-market gold trading.
Two other licenses were amended to remove a secondary trade ban on some Venezuelan sovereign bonds and Petróleos de Venezuela, S.A. (PdVSA) debt and equity.
A ban on trading in the primary Venezuelan bond market is still in place.
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The sanctions were lifted as fighting in the Middle East between Israel and Hamas continued, putting oil prices and supply in jeopardy.
In 2019, the Trump administration imposed heavy sanctions on the nation’s oil industry after a dispute arose between Maduro and opposition leader Juan Guaido over the 2018 presidential election. The U.S. government official declared Guaido to be Venezuela’s interim president.
As a result of the sanctions, crude oil imports from Venezuela sharply dropped from 634,000 barrels per day in January 2019 to 11,000 barrels per day in May 2019 and zero barrels per day in June 2019, according to the Energy Information Administration. The U.S. had imported 586,000 barrels of oil per day from the country in 2018.
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Although the Biden administration has eased the sanctions to allow U.S.-Venezuela trade to continue, it has also taken steps to curb U.S. oil, gas production, and fulfill his campaign promise to "end fossil fuel" as part of his broader climate agenda. For example, he has curbed oil and gas lease sales on federal lands and waters, revoked pipeline permits and consistently appointed officials across his administration who back green energy over traditional fossil fuels.
Still, should Venezuela fail to follow through with imposing more democratic and fair elections, the U.S. will reinstate the sanctions.
Secretary of State Antony Blinken said in a press release that the U.S. expects Venezuelan officials to provide a specific timeline and process for the expedited reinstatement of all candidates, adding that all who want to run for president be allowed the opportunity on a level playing field, free to move around and assured of their physical safety.
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He also said Venezuela must begin releasing all wrongfully detained U.S. nationals and Venezuelan political prisoners. Failure to do so will reverse the course of action.
"The United States remains firmly committed to the Venezuelan people, and we will continue to work with the international community to support the restoration of democracy and the rule of law so that Venezuelans can rebuild their lives and their country," Blinken said. "The United States stands with the Venezuelan people and actors who want a democratic future."
Fox News Digital's Thomas Catenacci contributed to this report.
