Congressional Research Service Informing the legislative debate since 1914 IN FOCUS Updated January 16. 2024 Venezuela: Overview of U.S. Sanctions Policy Since 2005. the United States has imposed sanctions on Venezuelan individuals and entities that have engaged in criminal, antidemocratic, and/or corrupt actions. The Trump Administration expanded U.S. sanctions beyond individually targeted sanctions to include broader financial sanctions, sectoral sanctions, and sanctions on the government of Nicolas Maduro. Those sanctions failed to dislodge Maduro and contributed to an economic crisis in the country that has prompted 7.7 million Venezuelans to flee. The Biden Administration has sought to leverage sanctions relief to incentivize Maduro to allow presidential elections in 2024 to be as free and fair as possible, but the Venezuelan government has thus far continued to bar opposition primary winner Maria Corina Machado from running.
Recent Developments On October 18. 2023. the Biden Administration issued licenses easing energy sanctions on Venezuela through April 2024 after Maduro and the opposition signed the Barbados Accord, which included a roadmap toward holding competitive elections. U.S. officials warned that the licenses could be revoked if the Maduro government did not create a process to allow all barred candidates to run and release wrongfully detained Americans and Venezuelan political prisoners.
In late November 2023, the Maduro government announced that candidates barred from office could appeal to the supreme court. Machado appealed; the court's decision is pending. In December, the Maduro government released 20 political prisoners. 10 imprisoned Americans, and Leonard Francis, an American fugitive indicted in a naval bribery scandal. In addition to sanctions relief, the United States released Alex Saab, a U.S.-sanctioned ally of Maduro indicted on U.S. money laundering charges.
The 118th Congress is closely monitoring the degree to which the Maduro government complies with the Barbados Accord linked to U.S. sanctions relief and could seek to modify U.S. sanctions policy. Unless otherwise noted, information in this product is drawn from the Treasury Department's Office of Foreign Assets Control (OFAC).