Updated December 8, 2021
Venezuela: Political Crisis and U.S. Policy
Venezuela, under the authoritarian rule of Nicolás Maduro,
in a weaker position than before, since rifts within the
remains in a deep economic and humanitarian crisis
opposition hurt its performance in the November elections.
worsened by the Coronavirus Disease 2019 (COVID-19)
In those elections, corrupt courts disqualified an opposition
pandemic. Maduro has consolidated power over all of
candidate who was on the verge of becoming governor of
Venezuela’s institutions since claiming victory in the 2013
the state of Barinas.
election following the death of President Hugo Chávez
(1999-2013). His United Socialist Party of Venezuela
Economic and Humanitarian Crisis
(PSUV) took control of the National Assembly, the last
By most accounts, Maduro’s government has mismanaged
independent branch of government, in January 2021. The
the economy and engaged in massive corruption,
PSUV and its allies won 19 of 23 gubernatorial elections in
exacerbating the effects of a decline in oil prices and
flawed elections held in November.
production on the country’s economy. The International
Monetary Fund (IMF) estimates that Venezuela’s economy
Maduro has quashed dissent and resisted international
contracted by 74% from 2014 to 2020 and forecasts a 5%
pressure to step down since his reelection in a May 2018
contraction for 2021.
presidential vote widely condemned as fraudulent. In the
meantime, support for opposition leader Juan Guaidó, the
Shortages in food and medicine, declines in purchasing
former National Assembly president once regarded as
power, and a collapse of social services have created a
interim president by the United States and nearly 60 other
humanitarian crisis. According to a May 2021 survey by a
countries, has dissipated. The Biden Administration and
group of Venezuelan universities, the National Survey of
Congress continue to recognize the interim government led
Living Conditions (ENCOVI), 94% of Venezuelans live in
by Guaidó, in part to prevent Venezuelan assets abroad
poverty, with 77% in extreme poverty, and 60% have
from coming under Maduro’s control.
moderate to severe food insecurity. In April 2021, the
Maduro government allowed the World Food Program to
Political Situation
launch a school lunch program; it aims to reach 1.5 million
Maduro has used security forces, buoyed by corrupt courts,
children. Health indicators, particularly infant and maternal
to quash dissent. His government has rewarded allies,
mortality rates, have worsened. Previously eradicated
particularly in the security forces, with income earned from
diseases such as diphtheria and measles have returned.
illegal gold mining, drug trafficking, and other illicit
activities. Those forces have detained and abused Maduro’s
According to data from Johns Hopkins University (JHU),
opponents, including military officers, opposition
Venezuela reported 5,193 deaths from COVID-19 (as of
politicians, and civic leaders. As of November 29, 2021, the
December 6, 2021), but experts maintain the actual number
government held 251 political prisoners, according to Foro
is much higher. The pandemic has strained Venezuela’s
Penal, a Venezuelan human rights group. The U.N. Office
hollowed-out health system. According to JHU, 34.6% of
of the High Commissioner for Human Rights has
Venezuelans were fully vaccinated as of December 6.
documented thousands of extrajudicial killings and other
Venezuela has used Russian and Cuban vaccines and has
abuses by security forces. In November, the International
received Chinese vaccines both bilaterally and through the
Criminal Court opened an investigation into crimes against
COVID-19 Vaccines Global Access (COVAX) Facility.
humanity in Venezuela.
As of November 2021, U.N. agencies estimated 6 million
The Venezuelan opposition has been weak and divided,
Venezuelans had left the country (with 27 million
with many of its leaders in exile. Guaidó challenged
remaining). Some 4.9 million migrants fled to other Latin
Maduro’s authority in 2019; his support has since faded.
American and Caribbean countries. Migrants have faced
After Norway-led negotiations stalled in mid-2019, the
obstacles keeping jobs and accessing health care during the
Maduro government persecuted Guaidó’s supporters.
pandemic; they are vulnerable to human trafficking and
other abuses. In 2021, Colombia and Peru began granting
In April 2021, Guaidó called on opposition parties, labor
temporary protective status to Venezuelan migrants.
and civic groups, and business leaders to form a Unity
Platform to negotiate with Maduro officials. The Unity
International Response
Platform seeks better human rights, humanitarian, and
The international community is divided on policies toward
electoral conditions; Maduro’s team seeks sanctions relief
Venezuela, potentially hindering the effectiveness of efforts
and international recognition. Mediated by Norway, the
to restore democratic processes. The United States has
negotiations began in Mexico in September, but Maduro
encouraged other countries to sanction Maduro officials,
suspended them after the United States extradited a top ally,
hold the Maduro government responsible for human rights
Alex Saab, from Cape Verde to stand trial for money
violations, and provide humanitarian aid to Venezuelans.
laundering. Should the talks resume, the opposition may be
The United States, European Union (EU), Canada, and 11
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Venezuela: Political Crisis and U.S. Policy
Western Hemisphere countries that are parties to the Inter-
that government unless authorized as part of efforts to
American Treaty of Reciprocal Assistance have imposed
aid the Venezuelan people (E.O. 13884).
targeted sanctions and travel bans on Maduro officials. The
In March 2020, the Department of Justice indicted Maduro
United Kingdom and some Western Hemisphere countries
and 14 top officials for narco-terrorism, drug trafficking,
still recognize Guaidó as interim president, although EU
and other crimes. U.S. agencies have worked with partner
countries have not recognized him as such since January
countries to combat drug trafficking, money laundering,
2021. The EU, Canada, and the United States have issued
and illicit mining from Venezuela. On December 1, the
joint statements pledging to review sanctions if negotiations
Treasury Department designated two Revolutionary Armed
yield improved conditions for the Venezuelan people. The
Forces of Colombia (FARC) dissident groups that operate
EU sent observers to monitor the November elections;
in Venezuela as foreign terrorist organizations.
Maduro expelled them before their mission was to end.
U.S. Assistance. The United States is providing assistance
Other countries, including China, Russia, Cuba, Turkey,
and helping to coordinate the regional response to the
and Iran, support Maduro. Russia and China have blocked
Venezuelan migration crisis. From FY2017 to FY2021, the
anti-Maduro initiatives at the U.N. Security Council. Russia
United States provided $1.65 billion in humanitarian aid to
also has supported Venezuela’s oil industry, helped
Venezuela and countries sheltering Venezuelans. Over that
Venezuela skirt U.S. sanctions, and sent military personnel
period, U.S. democracy, development, and health support
and equipment to the country. China continues to purchase
related to the Venezuela crisis totaled some $323 million.
Venezuelan oil and has provided surveillance equipment
and other technology. Since May 2020, Iran has shipped
Congressional Action. Congress has supported U.S. efforts
gasoline to Venezuela in exchange for gold.
to promote a return to democracy in Venezuela without the
Recent U.S. Policy
use of military force and to provide humanitarian assistance
to Venezuelans. The 117th Congress has continued close
The U.S. government ceased recognizing Maduro as
Venezuela’s legitimate president in January 2019.
oversight of U.S. policy toward Venezuela through
The
hearings, legislation, and letters to the Administration.
Trump Administration discussed using military force in
Venezuela but ultimately sought to compel Maduro to leave
In March 2021, the Senate Foreign Relations Committee
office through diplomatic, economic, and legal pressure.
reported S.Res. 44, which would denounce fraudulent
The Biden Administration has maintained a similar, though
legislative elections in Venezuela. Also in March, the
less publicly confrontational, policy toward Venezuela.
Senate Homeland Security and Governmental Affairs
Committee reported S. 688, which would prohibit
Biden officials have sought to support the Venezuelan
contracting with persons who have business operations with
people while engaging in multilateral diplomacy to press
the Maduro government. In July, the House passed its
for a return to democracy and hold corrupt and abusive
version of the FY2022 foreign aid appropriations bill, H.R.
Maduro officials accountable. As part of its efforts to
4373, which would provide $50 million for democracy
support the Venezuelan people, on March 8, 2021, the
programs in Venezuela (up from $33 million in FY2021)
Biden Administration designated Venezuela as a
and would ensure humanitarian assistance to countries
beneficiary country for Temporary Protected Status (TPS).
hosting Venezuelan migrants. The Senate Appropriations
Biden Administration officials reviewed and maintained
Committee’s version of the bill, S. 3075, would provide the
U.S. targeted and sectoral sanctions on Venezuela.
same funding for Venezuela.
Sanctions and Indictments. Sanctions are key parts of
Oversight has focused on the Biden Administration’s
U.S. policy toward Venezuela. They include the following:
approach to sanctions, negotiations, and humanitarian relief
Individual sanctions for terrorism; drug trafficking;
for the Venezuelan people. Many Members of Congress
and those who have committed antidemocratic actions,
praised the March 2021 designation of TPS for Venezuela.
human rights violations, or corruption (see Executive
Although some in Congress support continued pressure on
Order [E.O.] 13692; P.L. 113-278; P.L. 114-194)
the Maduro government, others favor a more targeted
approach, arguing that broad sanctions have not prompted
Financial sanctions restricting access to U.S. financial
political change but have hurt the Venezuelan people. Some
markets by the Maduro government and state oil
Members have advocated for an end to any sanctions that
company, Petróleos de Venezuela (PdVSA) (E.O.
have worsened the humanitarian crisis, whereas others have
13808); prohibiting transactions using cryptocurrency
called for more targeted sanctions relief.
issued by the Maduro government (E.O. 13827); and
prohibiting the purchase of Venezuelan debt (E.O.
See also CRS Report R44841, Venezuela: Background and
13835)
U.S. Relations; CRS In Focus IF11029, The Venezuela
Sectoral sanctions blocking assets and prohibiting
Regional Humanitarian Crisis and COVID-19; CRS In
unlicensed transactions with PdVSA, Venezuela’s
Focus IF10715, Venezuela: Overview of U.S. Sanctions;
central bank, and the state gold mining company, among
and CRS In Focus IF11216, Venezuela: International
other entities (E.O. 13850)
Efforts to Resolve the Political Crisis.
Sanctions on the Maduro government blocking assets
Clare Ribando Seelke, Acting Section Research Manager
in the United States and prohibiting transactions with
IF10230
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Venezuela: Political Crisis and U.S. Policy
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