Biden Team Weighs Venezuela Oil Sales as U.S. Nears Russia Ban
- U.S. has sought additional oil supplies during Ukraine war
- Trump administration sought to undermine Russia ally Maduro
U.S. and Venezuelan officials discussed a waiver of some U.S. sanctions so that the socialist country can resume oil sales in an unusual meeting over the weekend, according to people familiar with the matter, as the Biden administration searches for alternatives to Russian oil.
“The purpose of the trip that was taken by administration officials was to discuss a range of issues including, certainly, energy security, but also to discuss the health and welfare of detained U.S. citizens,” White House Press Secretary Jen Psaki said Monday in the first official U.S. acknowledgment of the meeting.
A U.S. delegation led by National Security Council Senior Director for Western Hemisphere Affairs Juan Gonzalez and Ambassador to Venezuela James Story met with Venezuelan officials in Caracas, the people said.
The Biden administration is considering offering Venezuela temporary relief from sanctions to sell its oil on international markets, according to two of the people. They said that Venezuelan President Nicolas Maduro is quite interested in a deal, and that U.S. sanctions relief would cover not only Venezuelan oil itself but also ships, tankers, payments and other infrastructure necessary for trade to resume.
The Biden administration has been looking for additional sources of oil after Russia’s invasion of Ukraine, which has led to increasing pressure from U.S. lawmakers in both parties to ban imports of Russian oil. Psaki said Biden hasn’t yet made a decision on a ban.
Under former President Donald Trump, the U.S. sought to undermine Maduro’s regime, ratcheting up sanctions and recognizing an opposition leader, Juan Guaido, as the country’s rightful head of state. Maduro responded by building closer ties to Russia.
Asked if it’s worth doing business with Maduro to drive down gas prices, Psaki said Monday, “That’s leaping several stages ahead in any process. There was a discussion that was had by members of the administration over the course of the last several days. Those discussions are also ongoing.”
Maduro has managed to tame hyperinflation and stabilize the economy after a years-long collapse that triggered a humanitarian crisis and prompted some 6 million Venezuelans to flee the country. The economy grew for the first time in seven years and oil output began to rebound in 2021 after Maduro implemented a series of free-market reforms.
Still, at roughly 800,000 barrels a day, crude output is just a fraction of the 3 million barrels that Venezuela used to produce daily for years. It has more proven reserves than any other country in the world, and Venezuelan officials told the U.S. delegation they could quite easily bring production to 1 million barrels a day within months with sanctions relief, according to one person familiar with the talks.
— With assistance by Ezra Fieser
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