- President Maduro says the agreement offers electoral guarantees
- The US could ease banking restrictions first – sources
- An easing of oil sanctions could soon follow – sources
CARACAS/WASHINGTON/HOUSTON, Oct 16 (Portal) – Venezuela’s government and opposition will resume on Tuesday long-suspended talks that President Nicolas Maduro said would benefit the upcoming 2024 elections, a move that will could lead to Washington easing sanctions, multiple sources said on Monday.
The U.S. has long said it would lift some of its sanctions in exchange for democratic concessions from Maduro, but Monday’s announcement offered the first concrete timeline in nearly a year for talks between the government and the opposition.
President Joe Biden’s administration has shifted from former President Donald Trump’s “maximum pressure” campaign to increased U.S. engagement with Caracas on issues ranging from energy to immigration to political reform.
The deal between the government and the opposition will offer electoral guarantees, Maduro said on state television.
“We are close to signing new agreements with the opposition, agreements that will benefit peace and the upcoming elections,” he said, without giving details.
Negotiations aimed at finding a way out of Venezuela’s long-standing political and economic crisis will take place in Barbados. Maduro, president since 2013, is expected to run for re-election but has not yet formalized his candidacy. His government has banned prominent opposition members from running for office.
Initial U.S. steps would include significant but limited easing of sanctions and possibly lifting some restrictions on Venezuela’s banking sector, Washington sources said, adding that further easing would depend on whether Maduro organizes fair elections that meet international standards .
The U.S. could quickly issue permits related to Venezuela’s oil deal after signing the government-opposition deal, two people familiar with the matter said in Washington on condition of anonymity.
Possible sanctions relief
Any U.S. action would come only after an agreement under which Maduro commits to a presidential election date and lifting bans on opposition candidates, these two sources said.
A source in Washington said initial steps toward easing sanctions could be announced within hours of Barbados signing if the U.S. is satisfied that Maduro has fulfilled his commitment by then.
Steps under consideration include restoring Venezuelan banks’ access to the global financial system, which could facilitate further oil-related transactions, the source said.
The US State Department on Monday celebrated the announcement of the resumption of talks but made no mention of easing sanctions.
“The United States will continue its efforts to unite the international community in support of the Venezuela-led negotiation process,” it said.
It was not immediately known whether U.S. officials would be present for the talks or announcement in Barbados.
The U.S. is aware that Maduro has reneged on previous commitments to hold free elections and is watching closely to ensure he follows through on his recent promises, sources said.
A source in Washington said the agreement between the government and opposition would set an election date in the second half of next year and allow international observers and the participation of opposition figures who are currently barred from holding office.
It remained unclear whether the ban on all opposition candidates would be lifted. The opposition considers the bans to be illegal.
Some opposition figures said Monday they doubt Maduro will keep his promises. The last meeting between the two sides took place in November 2022.
The opposition will hold a primary on Sunday to choose its 2024 candidate. Top candidate Maria Corina Machado is currently prohibited from holding public office.
Last week, Portal reported, citing five sources, that Venezuela and the United States had made progress in talks in Qatar on an agreement that could allow at least one more foreign oil company to take Venezuelan crude to pay down debt if Maduro ends negotiations with the country Opposition resumes.
Two of those sources named France’s Maurel & Prom (MAUP.PA), a joint venture partner of Venezuela’s state oil company PDVSA, as a possible recipient of a U.S. “letter of comfort.” At the time, a spokesperson for Maurel & Prom confirmed that the company had “made a related request to US authorities” but declined to elaborate.
A U.S. letter of comfort would allow a PDVSA partner to take Venezuelan oil for export as debt repayment or enter into an oil swap deal to pay off outstanding debt and dividends.
US SANCTIONS
The US imposed sanctions on Venezuela to punish Maduro’s government after a 2018 election that Washington viewed as a sham. Since 2019, US sanctions have banned PDVSA from exporting its oil to select markets.
Trump’s sanctions, coupled with diplomatic pressure, were intended to force Maduro’s downfall. Maduro and his government have survived with the support of the military as well as China, Russia and Cuba.
The Biden administration has been looking for ways to increase the flow of oil to global markets to mitigate high prices caused by sanctions on Russia over its war in Ukraine and OPEC+ production cuts, and now fears the conflict will continue in the near future East could escalate.
However, with no significant investment in Venezuela’s oil sector for over a decade, real increases in oil production will take time, analysts say.
Biden’s administration has kept most of the sanctions in place to force Maduro to take concrete steps toward free elections, portraying sanctions relief as a lure and drawing criticism from opponents.
Republican U.S. Senator John Barrasso criticized Biden’s energy policies, saying in a statement: “America should never beg for oil from socialist dictators or terrorists.”
The government and opposition agreed last year to use $3 billion in frozen assets for humanitarian purposes through a United Nations-managed fund that is not yet operational.
Reporting by Mayela Armas in Caracas, Matt Spetalnick in Washington and Marianna Parraga in Houston; writing by Julia Symmes Cobb and Valentine Hilaire; Editing by David Gregorio and Sonali Paul
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