Focus on oil, not democracy, despite the wishes of the Venezuelan people: IFP
In this excerpt from the podcast Inside Florida Politics, Antonio Fins takes a deep dive into Venezuela and the lack of movement for regime change.
The United States has partially lifted sanctions it has imposed on Venezuela’s state-run banking system since 2017, but the decision opens the door to limited financial operations between U.S. companies and key entities in the South American country. The measure was announced by the Office of Foreign Assets Control (OFAC) under the Department of the Treasury, according to a document released on Tuesday.
The change comes amid a political shift after President Nicolás Maduro was captured in a U.S. military operation and Delcy Rodriguez was installed as acting president. U.S. officials said the adjustments do not represent a complete lifting of sanctions, but rather controlled flexibility to facilitate some economic exchanges.
What sanctions is the US lifting and what operations are allowed?
According to OFAC, U.S. companies will be able to do business with four Venezuelan state-owned banks: Banco de Venezuela, Banco de Venezuela, Banco Digital de los Trabajadores, and Banco del Tesoro. Authorized activities include account management, money transfers, loans, insurance, guarantees, check issuance, and use of digital wallets and cards.
However, the scope is limited. The document specifies that no asset freezes have been lifted or operations related to other current sanctions have been activated. In other words, the relief is partial and focuses on allowing specific financial flows without changing the general restriction regime.
Why is the US now easing sanctions on Venezuela?
Imdat Honor, an analyst at Florida International University, said in an interview with CNN that the measures reflect a “cautious” reopening of the economic space. As he explained, the US government is creating a “legally protected” route for American companies to operate in Venezuela again without completely lifting sanctions.
Mr. Honor pointed out that the introduction of a central bank would be key. Central banks facilitate the inflow of foreign currency through formal channels and enable contract negotiations in strategic areas such as infrastructure.
In practice, this could lead to new investment opportunities, albeit subject to strict rules and continued supervision.
How will it affect the economies of Venezuela and the United States?
The flexibility comes as U.S. companies seek to resume operations in Venezuela following recent legal changes, particularly in sectors such as hydrocarbons and mining. These reforms were driven to attract foreign investment and meet the conditions laid out by Washington.
For the Venezuelan community in the United States, this change could have an indirect impact. Increased economic activity in Venezuela could impact remittances, business opportunities, and economic stability for families with ties to both countries. However, the actual range will depend on how restrictions and investor confidence change.
What happens next after the partial lifting of sanctions?
For now, this measure is a first step towards possible economic normalization, but on a gradual and conditional plan.
In the coming months, all eyes will be on whether these licenses are expanded, how the market reacts, and whether relations between the two governments continue to improve.
It will also be key to see whether Venezuela’s new reforms succeed in increasing the interest of international investors, or whether regulations continue to limit the scope of this opening.
Contributed by: Reuters
Boris Q’va is a national Spanish language trends news reporter for Connect/USA TODAY Network. You can follow him on X as @ByBorisQva or write to him at BBalsindesUrquiola@gannett.com.
