Updated September 1, 2022
Venezuela: Political Crisis and U.S. Policy
Venezuela, under the authoritarian rule of Nicolás Maduro,
After the March 2022 meeting with U.S. officials, Maduro
remains in a deep economic and humanitarian crisis
released two unjustly imprisoned Americans and pledged to
worsened by the Coronavirus Disease 2019 (COVID-19)
restart negotiations but has not done so. Even if
pandemic. Maduro has consolidated power over all of
negotiations restart, it is unclear whether Maduro will make
Venezuela’s institutions since his 2013 election after the
significant concessions without U.S. sanctions relief.
death of President Hugo Chávez (1999-2013). Maduro’s
United Socialist Party of Venezuela (PSUV) took control of
Economic and Humanitarian Crisis
the National Assembly after flawed parliamentary elections
By most accounts, Maduro’s government has mismanaged
in December 2020; the PSUV and allies also won 19 of 23
the economy and engaged in massive corruption,
gubernatorial races in November 2021 state-level elections.
exacerbating the effects of a decline in oil production.
Between 2014 and 2021, Venezuela’s economy contracted
Maduro has quashed dissent and resisted U.S. and
by 80%, according to estimates by the International
international pressure to step down since his reelection in a
Monetary Fund (IMF). According to a February 2021
2018 presidential vote widely condemned as fraudulent.
Government Accountability Office report, sanctions
Domestic and international support for opposition leader
imposed by the United States in response to Maduro’s
Juan Guaidó, the former National Assembly president once
authoritarian actions, particularly sanctions targeting
regarded as interim president by nearly 60 other countries,
Venezuela’s oil industry, contributed to the economic crisis.
has dissipated. The Biden Administration continues to
Since 2021, hyperinflation has abated and higher oil prices
recognize Guaidó’s government, partially to prevent
driven by Russia’s invasion of Ukraine appear to be driving
Venezuelan assets abroad from coming under Maduro’s
a nascent economic recovery.
control. Administration officials nevertheless met with
Maduro in March and June 2022, reportedly to discuss U.S.
Nevertheless, shortages in food and medicine, declines in
citizens illegally detained in Venezuela, restarting stalled
purchasing power, and a collapse of social services have
negotiations with the opposition, and energy issues.
created a humanitarian crisis. According to the 2022 U.N.
Global Humanitarian Overview, some 7 million
Political Situation
Venezuelans are in need of humanitarian assistance. Health
Maduro has used security forces, buoyed by corrupt courts,
indicators, particularly infant and maternal mortality rates,
to quash dissent. His government has rewarded allies,
have worsened. Violent clashes between illegally armed
particularly in the security forces, by allowing them to earn
groups along the Venezuela-Colombia border have
income from illegal gold mining, drug trafficking, and other
complicated humanitarian relief efforts in that region.
illicit activities. Those forces have detained and abused
Maduro’s opponents, including military officers, opposition
According to data from Johns Hopkins University (JHU),
politicians, and civic leaders. As of August 24, 2022, the
Venezuela reported 5,796 deaths from COVID-19 (as of
government had imprisoned 244 political prisoners,
late August 2022), but experts maintain the actual number
according to Foro Penal, a Venezuelan human rights group.
is much higher. The pandemic has strained Venezuela’s
The U.N. Office of the High Commissioner for Human
hollowed-out health system. According to JHU, 50.2% of
Rights has documented, and the International Criminal
Venezuelans were fully vaccinated as of August 2022.
Court is investigating, extrajudicial killings and other grave
Venezuela has used Russian and Cuban vaccines and has
crimes committed by Venezuela’s security forces.
received Chinese vaccines both bilaterally and through the
COVID-19 Vaccines Global Access (COVAX) Facility.
The Venezuelan opposition has been weak and divided,
with many of its leaders in exile. Guaidó challenged
As of August 2022, U.N. agencies estimated 6.8 million
Maduro’s authority in 2019, but Guaidó’s support has since
Venezuelans had left the country (with 26.9 million
faded. After Norway-led negotiations stalled in mid-2019,
remaining). Some 5.8 million of these migrants fled to other
the Maduro government persecuted Guaidó’s supporters. In
Latin American and Caribbean countries. Migrants have
April 2021, Guaidó called on opposition parties, labor and
faced obstacles keeping jobs and accessing health care
civic groups, and business leaders to form a Unity Platform
during the pandemic; they are vulnerable to human
to negotiate with Maduro officials. The Unity Platform
trafficking and other abuses. In 2021, Colombia and Peru
seeks better human rights, humanitarian, and electoral
began granting temporary protected status to Venezuelans.
conditions for the 2024 presidential elections; Maduro’s
team seeks relief from U.S. sanctions and international
International Response
recognition. Mediated by Norway, the negotiations began in
The international community is divided on policies toward
Mexico in September 2021, but Maduro suspended them
Venezuela. The United States has encouraged other
after the United States extradited a top ally, Alex Saab,
countries to sanction Maduro officials, hold the Maduro
from Cape Verde to stand trial for money laundering.
government responsible for human rights abuses, and
https://crsreports.congress.gov
Venezuela: Political Crisis and U.S. Policy
provide humanitarian aid to Venezuelans. The United
that government unless authorized as part of efforts to
States, European Union (EU), Canada, and 11 Western
aid the Venezuelan people (E.O. 13884).
Hemisphere countries have imposed targeted sanctions and
In March 2020, the Department of Justice indicted Maduro
travel bans on Maduro officials. The United Kingdom and a
and 14 top officials for narco-terrorism, drug trafficking,
few Western Hemisphere countries still recognize Guaidó
and other crimes. U.S. agencies have worked with partner
as interim president. The EU, Canada, and the United States
countries to combat drug trafficking, money laundering,
have issued joint statements, including most recently in
and illicit mining in Venezuela. In December 2021, the
February 2022, pledging to review sanctions if negotiations
Treasury Department designated two Revolutionary Armed
yield improved conditions for the Venezuelan people. On
Forces of Colombia (FARC) dissident groups that operate
the other hand, Colombia, long a staunch Guaidó supporter,
in Venezuela as foreign terrorist organizations.
has restored diplomatic relations with the Maduro
government under leftist President Gustavo Petro, who took
U.S. Assistance. The United States has been providing
office on August 7. Petro backs a negotiated solution to the
assistance and helping coordinate the regional response to
Venezuela crisis.
the Venezuelan migration crisis. From FY2017 to FY2022,
the United States provided $1.94 billion in humanitarian aid
Other countries, including China, Russia, Cuba, Turkey,
to Venezuela and countries sheltering Venezuelans. U.S.
and Iran, support Maduro. Russia has supported the oil
democracy, development, and health support for the
industry in Venezuela, helped Venezuela skirt U.S.
Venezuela crisis totaled $323 million through FY2021 (the
sanctions, and sent military personnel and equipment to the
last year complete figures are available).
country. Venezuela hosted Russia-backed military exercises
in July 2022 that included forces from China and Iran.
Congressional Action. In March 2022, Congress enacted
China continues to purchase Venezuelan oil and has
the FY2022 Consolidated Appropriations Act (P.L. 117-
provided surveillance equipment and other technology.
103), which includes $40 million for democracy programs
Turkey has purchased Venezuela’s illegally mined gold.
in Venezuela ($7 million more than the FY2021 allocation).
Since May 2020, Iran has shipped gasoline to Venezuela in
The act directs U.S. agencies to continue providing support
exchange for gold, and the countries signed a 20-year
to other countries hosting Venezuelans. The explanatory
economic cooperation agreement in July 2022.
statement directs USAID to address violence against
Venezuelan women and child migrants and requires a report
U.S. Policy
on how the U.S. government can repatriate illegally stolen
The U.S. government ceased recognizing Maduro as
assets to the people of Venezuela.
Venezuela’s legitimate president in January 2019. The
Trump Administration discussed using military force in
Congress is considering the Administration’s FY2023
Venezuela but ultimately sought to compel Maduro to leave
request of $55 million for Venezuela. The FY2023 State
office through diplomatic, economic, and legal pressure.
and Foreign Operations appropriations bill reported by the
The Biden Administration initially maintained a similar
House Appropriations Committee (H.R. 8282) would
policy toward Venezuela, although the March 2022 talks
provide $50 million in funds for Venezuela, including
noted above signaled a policy shift. Biden officials are
democracy funding. The Senate Appropriations
considering how potential U.S. sanctions relief could
Committee’s version, S. 4662, would provide $40 million.
incentivize Maduro to negotiate a path toward free and fair
elections. In July 2022, the Administration announced an
Oversight has focused on the Administration’s approach to
18-month extension of the temporary protected status first
sanctions and negotiations. While some in Congress support
announced for Venezuelans in March 2021.
continued pressure on the Maduro government, others
assert that broad sanctions have hurt the Venezuelan
Sanctions and Indictments. Sanctions are key parts of
people. Whereas some Members of Congress expressed
U.S. policy toward Venezuela. They include the following:
support for U.S. talks with Maduro, others opposed those
Individual sanctions for terrorism, drug trafficking,
talks and introduced legislation that would prohibit U.S.
antidemocratic actions, human rights violations, or
imports of Venezuelan oil (H.R. 6942, H.R. 7012, H.R.
corruption (see Executive Order [E.O.] 13692; P.L. 113-
7023, H.R. 7207, S. 3798). Among other bills, H.R. 6539
278; P.L. 114-194)
and S. 688 (reported by the Senate Homeland Security and
Governmental Affairs Committee in March 2021) would
Financial sanctions restricting access to U.S. financial
prohibit contracting with persons who do business with the
markets by the Maduro government and state oil
Maduro regime. H.R. 6539 and S. 1417 would establish a
company PdVSA (E.O. 13808); prohibiting transactions
fund to help repatriate frozen Venezuelan assets in the
using cryptocurrency issued by the Maduro government
United States to the Venezuelan people.
(E.O. 13827); and prohibiting the purchase of
Venezuelan debt (E.O. 13835)
See also: CRS In Focus IF10715, Venezuela: Overview of
Sectoral sanctions blocking assets and prohibiting
U.S. Sanctions; CRS In Focus IF11029, The Venezuela
unlicensed transactions with PdVSA, Venezuela’s
Regional Humanitarian Crisis and COVID-19.
central bank, and the state gold mining company, among
other entities (E.O. 13850)
Clare Ribando Seelke, Specialist in Latin American
Sanctions on the Maduro government blocking assets
Affairs
in the United States and prohibiting transactions with
IF10230
https://crsreports.congress.gov
Venezuela: Political Crisis and U.S. Policy
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https://crsreports.congress.gov | IF10230 · VERSION 54 · UPDATED