The US has started reimposing some sanctions against Venezuela after the country’s Supreme Court upheld a ban preventing presidential candidate Maria Corina Machado from holding office, upending the opposition’s plans for elections planned for later this year.
Machado won the opposition’s independently run presidential primary last October with more than 90% of the votes, potentially putting her name in a prime position to challenge socialist leader Nicolas Maduro in the election.
Her victory came despite the Venezuelan government announcing a 15-year ban on her running for office just days after she formally entered the race.
On 26 January, the Supreme Court, loyal to Maduro, upheld the ban on Machado and also confirmed the ineligibility of her possible replacement — two-time presidential candidate Henrique Capriles.
The US government last October suspended sanctions against Venezuela after Maduro and his political opponents agreed to terms to a presidential election.
That agreement saw the Administration of US President Joe Biden easing sanctions on Venezuela’s oil sector, allowing Chevron to increase production in the South American nation.
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However, following the Supreme Court’s decision, Washington has implemented sanctions against Venezuela’s state-owned gold mining group Minerven, saying US personnel will have until 13 February to wind down any transaction with the company.
“Actions by Nicolas Maduro and his representatives in Venezuela, including the arrest of members of the democratic opposition and the barring of candidates from competing in this year’s presidential election, are inconsistent with the agreements signed in Barbados last October,” said the US State Department in a statement.
As part of the agreement, the US Treasury Department issued a new general licence allowing Venezuela to produce and export oil for the forthcoming six months without limitation.
“Absent progress between Maduro and his representatives and the opposition Unitary Platform, particularly on allowing all presidential candidates to compete in this year’s election, the US will not renew the licence when it expires on 18 April,” added the US State Department.
Chevron was hopeful on continuing increasing production in Venezuela after Washington temporarily suspended sanctions against the country’s oil sector.
Chevron was producing close to 150,000 barrels per day of oil in Venezuela late last year – more than twice the 60,000-bpd figure from earlier 2023.