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Venezuela: US easing sanctions is a 'stick and carrot' policy

  • By Al Mayadeen English
  • Source: Agencies
  • 19 May 2022 09:53
  • 1 Shares
3 Min Read

The US looks to ease sanctions for Venezuelan oil to preserve its oil interests - Caracas takes precaution.

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  • Venezuela: US easing sanctions is a 'stick and carrot' policy
    Venezuelan National Assembly lawmaker Julio Chavez

Venezuela should be cautious about the partial lifting of US sanctions, according to Venezuelan National Assembly lawmaker Julio Chavez to Sputnik. 

"We should look at things with caution, I think that this decision by the United States government fits into the 'stick and carrot' policy. On the one hand, easing, on the other, cracking down, this is, of course, how it happens," Chavez, a member of the ruling United Socialist Party of Venezuela (PSUV), said.

The US Department of Treasury, according to a senior US administration official, has issued a license that allowed oil companies such as Chevron, to conduct talks with the Venezuelan government regarding future activities in the country. 

Read more: US trying to sign energy deals with Iran, Venezuela

 

As the energy crisis affects the globe and threatens an economic implosion in Europe, Washington has been looking for energy alternatives to diminish European dependency on Russian energy. Within this context, this was also emphasized by Chavez.

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The US administration contended that although sanctions were eased on Caracas, there are no implications for joint projects with PDVSA, a Venezuelan oil company. 

“This.. reflects the severe crisis that the United States is experiencing, the levels of stagflation, the high cost of fuel and energy, food, unemployment and everything related to this belligerent campaign and the use of NATO for a military attack on Russia on the territory of Ukraine. And that it [the campaign] is hitting themselves," the lawmaker said.

Venezuela, from 2014 to 2020, lost 98.6% of all external foreign exchange revenues due to US sanctions. 

Payments by PDVSA to the country's central bank for the timeframe decreased from $56.609 billion to $73.4 million a year, or more than 99 percent.

Venezuela could supply oil to West in mid-2022 if sanctions removed

Venezuela could begin supplying oil to the United States and Europe in the middle of 2022, provided that the West removes the sanctions they imposed on Caracas, Venezuelan National Assembly oil and energy committee chairman Angel Rodriguez told Sputnik.

"If the [unilateral] measures are suspended ... considering what we have already achieved at the moment, we could supply energy that the US and Europe need so much in the middle of the year," the Venezuelan official said. 

He revealed that for Caracas and Washington to strike a deal, the latter should make Venezuela an offer, Rodriguez said, explaining that the key factor disrupting the country's economic situation is the US itself.

The legislator hoped that a possible resumption of oil exports to the US and Europe would not affect Caracas' relations with Moscow.

  • United States
  • Julio Chavez
  • Venezuela
  • Sanctions On Venezuela

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