Sanctions Policy Developments Offer Insight Into U.S.-Venezuelan Trade Relationship

In January, following the capture and extradition of Nicolás Maduro, the Trump Administration authorized actions to preserve the proceeds of sales of Venezuelan natural resources and eased certain restrictions on Venezuelan oil transactions by issuing an Executive Order (EO) and several general licenses under the U.S. Department of the Treasury (Treasury), Office of Foreign Assets Control's (OFAC) Venezuela Sanctions Regulations (VSR) program. At the same time, the United States continues to maintain broader sanctions on the Venezuelan energy sector and a range of other parties in Venezuela. As further described below, the Administration's issuance of the noted EO and general licenses, in coordination with other policy actions, signals a renewed intention to resume engagement in the Venezuelan energy sector.