Venezuela is prepared for any scenario including the reimposition of U.S. sanctions on its crude and gas exports, oil minister Pedro Tellechea said on Tuesday.
The United States began reimposing sanctions on Caracas this week after the South American country’s top court upheld a ban blocking the candidacy of the leading opposition hopeful in a presidential election later this year.
The Treasury Department on Monday gave U.S. entities until Feb. 13 to wind down transactions with Venezuelan state-owned miner Minerven. The U.S. State Department separately said on Tuesday Washington does not plan to renew a wider license that has allowed Venezuela’s oil to freely flow to its chosen destinations when it expires on April 18.
“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,” the State Department said in a statement.
“Absent progress between Maduro and his representatives and the opposition Unitary Platform… the United States will not renew the license when it expires on April 18,” the State Department added, referring to general license 44, which provides relief to Venezuela’s oil and gas sector.29dk2902l
“Venezuela is prepared for any circumstance,” minister Tellechea told reporters on the sidelines of a government event in Caracas. “They will find a powerful industry ready to face any situation.”
The U.S., which first imposed oil sanctions on Venezuela in 2019, had granted sanctions relief for the OPEC member country in October in recognition of a deal signed in Barbados with President Nicolas Maduro’s administration that included releasing political prisoners, allowing international observers and setting conditions for a fair presidential election.
Since October, Venezuela’s oil exports have slightly increased, with more cargoes going to the U.S. and Europe, which used to be its preferred markets before sanctions.
The U.S. would also feel the impact of any reimposing of energy sanctions on Venezuela, Tellechea told reporters, adding that the country will not “kneel down” just because somebody tries to impose which countries it can do business with.