The Venezuelan economy has experienced a significant collapse, leading to millions of Venezuelans fleeing to other countries in Latin America and the United States. Remittances from abroad have become a crucial source of income for many Venezuelan households, as the country’s most notable export has become its people, rather than oil. Despite predictions that oil sanctions would harm ordinary citizens and fail to topple President Maduro, they have remained in place due to the political difficulty of lifting them without gaining something in return. The sanctions have also pushed Venezuela closer to Russia and China, as these countries are willing to fill the void left by the United States.
In 2022, President Biden made exceptions to allow Chevron and European companies to invest in Venezuela, following Russia’s invasion of Ukraine. While these exceptions have opened the door for limited engagement with the Maduro government and the resumption of oil exports, the sanctions technically remain in place. U.S. officials are likely to impose restrictions on foreign companies in response to President Maduro’s crackdown, but the impact may be limited. This indicates the challenges of finding a balance between engaging with the Maduro government and not appearing to support his regime.
The situation in Venezuela highlights the limitations of American leverage in influencing another country’s politics. Dictators like President Maduro often tighten their grip on power in response to sanctions, regardless of whether they are under U.S. pressure or not. While individual sanctions on specific individuals in the Maduro regime could minimize collateral damage, many key figures are already on the sanctions list. As a result, there are few effective tools in the diplomatic toolbox for effecting political change in other countries.
Overall, the ongoing sanctions on Venezuela’s oil industry have had significant consequences for the country’s economy and its people. While efforts have been made to allow limited engagement with the Maduro government and resume oil exports, the challenges of finding a balance between economic interests and political concerns remain present. The situation in Venezuela serves as a cautionary tale about the complexities of international diplomacy and the limitations of using sanctions to achieve political change in other countries.
