May 20, 2015
Venezuela: U.S. Policy Overview
While historically the United States has had close relations
Colombia (FARC) with drug and weapons trafficking. The
with Venezuela, a major oil supplier, friction in bilateral
State Department maintained in its 2015 International
relations rose under the leftist populist government of
Narcotics Control Strategy Report that Venezuela was one
President Hugo Chávez (1999-2013), who died in March
of the preferred drug trafficking routes for illegal drugs
2013 after battling cancer for almost two years. After
from South America and that “political corruption”
Chávez’s death, Venezuela held presidential elections in
impeded the prosecution of drug traffickers in the country.
April 2013 in which acting President Nicolás Maduro, who
As in past years, the State Department reiterated that
had been serving as Chávez’s vice president, defeated
cooperation with Venezuela could be deepened if it signed
Henrique Capriles of the opposition Democratic Unity
an already negotiated addendum to a 1978 bilateral
Roundtable (MUD) by a margin of just 1.5%, with the
counternarcotics agreement. Press reports in May 2015
opposition alleging significant irregularities. Venezuela’s
maintained that U.S. federal prosecutors were investigating
December 2013 municipal elections demonstrated mixed
several high-ranking Venezuelan officials for cocaine
results for the ruling United Socialist Party of Venezuela
trafficking and money laundering.
(PSUV) and the MUD.
With regard to anti-terrorism cooperation, the Secretary of
In 2014 and 2015, the Maduro government has faced
State has made an annual determination since 2006 that
significant challenges. High rates of crime and violence
Venezuela has not been “cooperating fully with United
fueled student-led street protests in February 2014 that were
States antiterrorism efforts” pursuant to Section 40A of the
violently suppressed by Venezuelan security forces and
Arms Export Control Act (AECA). The most recent
militant pro-government civilian groups. The government
determination was made in May 2014. As a result, the
arrested and imprisoned a major opposition figure,
United States imposes an arms embargo, which prohibits all
Leopoldo López, along with two opposition mayors. While
U.S. commercial arms sales and retransfers to Venezuela.
the protests largely dissipated by June 2014, at least 43
people were killed on both sides of the conflict and more
For a number of years, there has been concern among
than 800 injured. The Union of South America Nations
policymakers about Iran’s growing activities in Latin
(UNASUR) initiated a dialogue between the government
America, particularly its relations with Venezuela. Under
and the opposition in April 2014, but the talks broke down
the Chávez government, relations with Iran grew,
because of a lack of progress.
particularly under the presidency of Iranian President
Mahmoud Ahmadinejad (2005-2013), and Venezuela
Since mid-2014, the rapid decline in the price of oil has hit
played a key role in the development of Iran’s expanding
Venezuela hard, with a contracting economy, high inflation,
relations with several other countries in region. In the
declining international reserves, and increasing poverty.
aftermath of the departure of Ahmadinejad from office and
The Maduro government cracked down on the opposition
the death of Chávez in 2013, many analysts contend that
again in February 2015, arresting the mayor of metropolitan
Iranian relations with the region have diminished. Current
Caracas, Antonio Ledezma. Attention in Venezuela is now
Iranian President Hassan Rouhani, who took office in
focused on elections for the unicameral National Assembly
August 2013, has not placed a priority on relations with
that are to take place in late 2015, but have not yet been
Latin America. Since 2008, the United States has imposed
scheduled.
sanctions on three Venezuelan companies for support to
Iran and on several Venezuelan individuals for supporting
U.S. Policy
the radical Lebanon-based Islamic Shiite group Hezbollah,
which is supported by Iran.
U.S. policymakers and Members of Congress have had
concerns for over a decade about the deterioration of human
Human Rights Sanctions
rights and democratic conditions in Venezuela as well as
the Venezuelan government’s lack of cooperation on anti-
Human rights organizations and U.S. officials have
drug and counterterrorism efforts.
expressed concerns for more than a decade about the
deterioration of democratic institutions and threats to
Security Concerns
freedom of speech and press in Venezuela.
Since 2005, Venezuela has been designated annually (by
In response to the Venezuelan government’s heavy-handed
President George W. Bush and President Obama, as part of
response to the protests in 2014, the Obama Administration
the annual narcotics certification process) as a country that
strongly criticized the government’s actions and called for
has failed to adhere to its international antidrug obligations.
dialogue. After dialogue between the government and the
Since 2008, the United States has imposed financial
opposition failed, the Administration imposed visa
sanctions on eight current or former Venezuelan officials
restrictions in July 2014 and February 2015 on more than
for allegedly helping the Revolutionary Armed Forces of
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Venezuela: U.S. Policy Overview
50 current or former Venezuelan officials involved in
sanctions. In Latin America, several countries and regional
human rights abuses.
organizations criticized the sanctions and expressed support
for Venezuela.
For a number of years, developments in Venezuela and U.S.
relations with the country have largely been oversight
U.S. officials explained that the EO employed standard
issues for Congress, but the 113th Congress enacted
language required by U.S. sanctions law that included the
legislation in December 2014—the Venezuela Defense of
finding of “an unusual extraordinary threat to the national
Human Rights and Civil Society Act of 2014 (P.L. 113-
security and foreign policy of the United States.” They
278). Among its provisions, the law required the President
emphasized that the sanctions do not target the people or
to impose sanctions (asset blocking and visa restrictions)
the economy of Venezuela, and that the United States is not
against those who the President determines are responsible
seeking to destabilize or topple the Maduro government.
for significant acts of violence or serious human rights
Rather, Administration officials contend that they are using
abuses associated with the 2014 protests or, more broadly,
sanctions against those individuals involved in human
anyone that has directed or ordered the arrest or prosecution
rights abuses and other actions that undermine democracy.
of a person primarily because of the person’s legitimate
In an effort to allay concerns in Latin America about the
exercise of freedom of expression or assembly. The act
language used in the EO, U.S. Deputy National Security
included presidential waiver authority for the application of
Advisor for Strategic Communications Ben Rhodes stated
sanctions if the President determines it is in the national
on April 7, 2015, just ahead of President Obama’s trip to
security interest of the United States.
the seventh Summit of the Americas held in Panama, that
“the United States does not believe that Venezuela poses
On March 8, 2015, President Obama issued Executive
some threat to our national security.” (White House, “On-
Order (EO) 13692 that implemented P.L. 113-278 and went
the-Record Conference Call on the President’s Trip to
beyond the requirements of the law (Federal Register,
Jamaica and Panama,” April 7, 2015.)
March 11, 2015, pp. 12747-12751). The EO authorizes
targeted sanctions (asset blocking and visa restrictions)
Looking Ahead
against those involved in:
Despite the tensions in relations, the Obama Administration
• actions or policies that undermine democratic processes
has maintained that the United States remains committed to
or institutions;
seeking constructive engagement with Venezuela. On April
• significant acts of violence or conduct that constitute a
11, 2015, President Obama met briefly with President
serious abuse or violation of human rights, including
Maduro on the sidelines of the Summit of the Americas in
against persons involved in antigovernment protests in
Panama. President Obama reportedly maintained that he
Venezuela in or since February 2014 (noted in P.L. 113-
wished for “peaceful dialogue” in Venezuela and reiterated
278);
that the United States was not interested in threatening
Venezuela, but in supporting democracy, stability, and
• actions that prohibit, limit, or penalize the exercise of
prosperity in the country and the region. Concerns that
freedom of expression or peaceful assembly (noted in
opposition to the sanctions by Venezuela and other
P.L. 113-278); or
countries might have put the United States on the defensive
• public corruption by senior officials within the
at the summit did not materialize.
government of Venezuela.
Looking ahead, it remains uncertain whether U.S.-
The EO also authorizes targeted sanctions against any
Venezuelan relations will get back on track in the short to
person determined to be a current or former leader of any
medium term. While trade linkages will remain significant,
entity that has, or whose members have, engaged in any of
with Venezuela continuing to be an important U.S. foreign
activity described above, or to be a current or former
oil supplier, overall bilateral relations will likely continue to
official of the government of Venezuela. In an annex to the
be strained, particularly in the lead up to the country’s
EO, President Obama froze the assets of seven
legislative elections. Some observers caution that the
Venezuelans: six members of Venezuela’s security forces
United States needs to be careful in its policy approach
and a prosecutor who had charged two opposition leaders
toward Venezuela in the lead up to those elections so as not
with conspiracy in politically motivated cases.
to take any action that could be used politically by the
Maduro government in an attempt to boost support for the
As expected, President Maduro lashed out at the United
ruling party.
States for the sanctions and warned Venezuela’s National
Assembly that the United States was poised to attack
For additional information, see CRS Report R43239,
Venezuela, including a naval blockade. Some analysts
Venezuela: Background and U.S. Relations.
maintain that the imposition of the sanctions, and
particularly the language portraying Venezuela as
Mark P. Sullivan, msullivan@crs.loc.gov, 7-7689
constituting an extraordinary threat to the United States,

played into Maduro’s narrative of Venezuela once again
IF10230
being bullied by U.S. aggression. In Venezuela, the
opposition MUD voiced disapproval of the characterization
of Venezuela as a threat and the imposition of unilateral
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