Updated November 30, 2022
Venezuela: Overview of U.S. Sanctions
For over 15 years, the United States has imposed sanctions
September 2021 but waived foreign aid restrictions for
in response to activities of the Venezuelan government and
programs that support the interim government.
Venezuelan individuals. The earliest sanctions imposed
related to Venezuela’s lack of cooperation on antidrug and
Treasury has imposed economic sanctions on at least 22
counterterrorism efforts. The Obama Administration
individuals with connections to Venezuela and 27
imposed targeted sanctions against individuals for human
companies by designating them as Specially Designated
rights abuses, corruption, and antidemocratic actions. The
Narcotics Traffickers pursuant to the Foreign Narcotics
Trump Administration expanded economic sanctions in
Kingpin Designation Act (P.L. 106-120, Title VIII; 21
response to the increasing authoritarianism of President
U.S.C. 1901 et seq.). Designated individuals include current
Nicolás Maduro (in power since 2013) and in an effort to
and former Venezuelan officials, such as Oil Minister
back the interim government led by then-National
Tareck al Aissami. Should Al Aissami remain in that
Assembly President Juan Guaidó. Despite U.S. and
position, it could complicate efforts to lift oil sanctions.
international sanctions, Maduro consolidated power.
Targeted Sanctions Related to Antidemocratic
While the Biden Administration has maintained sanctions
Actions, Human Rights Violations, and Corruption
on the Maduro government and its enablers, in November
In response to increasing repression in Venezuela, Congress
2022, the Treasury Department issued a license to allow
enacted the Venezuela Defense of Human Rights and Civil
Chevron to resume some operations in the country for six
Society Act of 2014 (P.L. 113-278; 50 U.S.C. 1701 note).
months after Maduro returned to negotiations with the
Among its provisions, the law required the President to
opposition (including Guaidó’s supporters). According to a
impose sanctions against those whom the President
joint statement, the United States, Canada, the United
identified as responsible for significant acts of violence,
Kingdom, and the European Union seek to leverage
serious human rights abuses, or antidemocratic actions.
sanctions relief to incentivize Maduro to negotiate a path
Congress extended this act through 2023 in P.L. 116-94.
toward free and fair elections in 2024. Fluctuations in oil
prices also have put pressure on U.S. and European officials
In March 2015, President Obama issued E.O. 13692 to
to find alternate sources to replace Russian-supplied oil.
implement P.L. 113-278, and Treasury issued regulations in
Venezuela’s neighboring countries, including Colombia and
July 2015 (31 C.F.R. Part 591). The E.O. targets (for asset
Peru, have restored relations with the Maduro government.
blocking and visa restrictions) those involved in actions or
They also support a negotiated solution to the political and
policies undermining democratic processes or institutions;
humanitarian crisis in Venezuela, which has prompted more
serious human rights abuses; prohibiting, limiting, or
than 7 million to flee the country since 2014.
penalizing freedom of expression or peaceful assembly; and
public corruption. It includes any person who is a current or
Terrorism-Related Sanctions
former leader of any entity engaged in any of those
Since 2006, the Secretary of State has made an annual
activities, as well as current or former government officials.
determination that Venezuela is not “cooperating fully with
United States anti-terrorism efforts” pursuant to Section
As of November 28, 2022, Treasury had imposed financial
40A of the Arms Export Control Act (22 U.S.C. 2781). The
sanctions on 112 Venezuelans and at least eight entities
most recent determination was made in May 2022. As a
pursuant to E.O. 13692. The targeted individuals have
result, the United States has prohibited all U.S. commercial
included President Maduro; his wife, Cilia Flores, and son,
arms sales and retransfers to Venezuela since 2006.
Nicolás Maduro Guerra; Executive Vice President Delcy
Rodríguez; Diosdado Cabello (Socialist party president);
In 2008, Treasury imposed financial sanctions on two
eight supreme court judges; the leaders of Venezuela’s
individuals and two travel agencies in Venezuela for
army, national guard, and national police; governors; the
financially supporting the radical Lebanon-based Islamic
director of the central bank; and the foreign minister. In
Shiite group Hezbollah. Pursuant to Executive Order (E.O.)
May 2019, Treasury lifted sanctions against the former
13224, those sanctions relate to terrorist funding.
head of Venezuela’s intelligence service, General Manuel
Cristopher Figuera, who broke ranks with Maduro. In June
Drug Trafficking-Related Sanctions
2022, Treasury lifted sanctions on Carlos Malpica Flores, a
Since 2005, pursuant to procedures in the Foreign Relations
nephew of Cilia Flores, possibly to encourage Maduro to
Authorization Act, FY2003 (P.L. 107-228, §706; 22 U.S.C.
resume negations with the opposition.
2291j), the President has made an annual determination that
Venezuela has failed demonstrably to adhere to its
Additional Financial Sanctions
obligations under international narcotics agreements.
President Trump imposed additional financial sanctions on
President Biden made the determination for FY2022 in
Venezuela because of the government’s human rights
abuses and antidemocratic actions. In August 2017, he
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Venezuela: Overview of U.S. Sanctions
issued E.O. 13808, which prohibited access to U.S.
company, Minerven, for using illicit gold operations to
financial markets by the Venezuelan government, including
support Maduro. In 2019, Treasury also sanctioned
PdVSA, with certain exceptions to minimize the impact on
Venezuela’s central bank and several shipping companies
the Venezuelan people and U.S. interests. In March 2018,
and vessels that transported oil to Cuba and Cuba’s state-
President Trump issued E.O. 13827 to prohibit transactions
run oil import/export company.
involving the Venezuelan government’s issuance of digital
currency, coin, or token. In May 2018, President Trump
In 2020 and 2021, Treasury began to sanction individuals,
issued E.O. 13835, which prohibited transactions related to
companies, and shipping companies for transporting
purchasing Venezuelan debt, including accounts receivable,
Venezuelan oil in violation of sanctions. Treasury imposed
and any debt owed to Venezuela pledged as collateral.
sanctions on two subsidiaries of Rosneft, Russia’s state-
controlled oil and gas company, and sanctioned four foreign
Broader Sectoral Sanctions
shipping companies for transporting Venezuelan oil. In
On November 1, 2018, President Trump issued E.O. 13850.
June 2020 and January 2021, Treasury sanctioned
This E.O. set forth a framework to block the assets of, and
individuals, companies, and vessels for sanctions evasion.
prohibit certain transactions with, any person determined by
the Secretary of the Treasury to operate in sectors of the
Sanctions on the Maduro Government
economy or to engage in corrupt transactions with the
In August 2019, President Trump issued E.O. 13884,
Maduro government. Some 26 individuals have been
blocking (freezing) the property and interests of the Maduro
sanctioned pursuant to E.O. 13850, including people and
government in the United States and within the control of
entities involved in a currency manipulation scheme; those
U.S. persons. The order prohibited U.S. persons from
who siphoned hundreds of millions of dollars from an
engaging in transactions with the Maduro government
emergency food aid system; and those who have helped
unless authorized by OFAC. E.O. 13884 also authorized
Maduro and PdVSA evade oil sanctions.
financial sanctions and visa restrictions on non-U.S.
persons that assist or support the Maduro government,
On January 28, 2019, pursuant to E.O. 13850, Treasury
including foreign energy companies working with PdVSA.
designated PdVSA as operating in the oil sector of the
Five individuals and several vessels and aircraft have been
Venezuelan economy and the Secretary of the Treasury
sanctioned under E.O. 13884. To allow assistance to the
determined the company was subject to U.S. sanctions. As a
Venezuelan people, OFAC issued licenses authorizing
result, all property and interests in property of PdVSA
transactions involving the delivery of food, agricultural
subject to U.S. jurisdiction are blocked, and U.S. persons
commodities, and medicine; remittances; international
(companies or individuals) generally are prohibited from
organizations; and communications services.
engaging in transactions with the company.
Policy Considerations
Treasury’s Office of Foreign Assets Control (OFAC) has
Congress has maintained bipartisan support for a negotiated
issued general licenses to allow certain transactions and
solution to the crisis in Venezuela that would pave the way
activities related to PdVSA and its U.S. subsidiaries. OFAC
for free and fair elections. In December 2019, Congress
first authorized transactions with U.S.-based PdVSA
enacted P.L. 116-94, which included provisions from the
subsidiaries PDV Holding Inc. (PDVH) and CITGO
VERDAD Act (S. 1025). The law extended sanctions
Holding Inc. through July 2019. OFAC extended that
regarding corruption and undemocratic actions through
authorization through February 2021. OFAC authorized
2023 and stated that U.S. policy supports “diplomatic
PDVH, CITGO, and other U.S. companies to import
engagement in order to advance a negotiated and peaceful
petroleum from PdVSA through April 2019, but payments
solution” to the crisis in Venezuela.
had to be made to a blocked U.S. account. OFAC initially
authorized U.S. companies working in Venezuela with
Although some in Congress support continued pressure on
PdVSA (including Chevron) to operate through July 2019.
the Maduro government, others favor a more targeted
An amended license allows only transactions necessary for
approach, arguing that broad sanctions have hurt the
the “safety or the preservation of assets” for companies
Venezuelan people. A February 2021 Government
other than Chevron through May 26, 2023.
Accountability Office report found that U.S. sanctions had
worsened Venezuela’s economic decline and hindered some
In May 2022, the Treasury Department slightly loosened
humanitarian aid delivery. Similarly, some in Congress
restrictions on Chevron, the last major U.S. oil company
have supported U.S. talks with Maduro and U.S. sanctions
operating in Venezuela, to discuss future operations with
relief as long as negotiations progress. Others have
PdVSA. After Maduro and opposition negotiators
introduced legislation that would prohibit U.S. imports of
announced a return to negotiations, on November 26, 2022,
Venezuelan oil. See CRS In Focus IF10230, Venezuela:
Treasury issued a license allowing Chevron to resume
Political Crisis and U.S. Policy; CRS Report R44841,
production, import, and export of petroleum products at its
Venezuela: Background and U.S. Relations.
existing joint ventures in Venezuela for an initial six-month
period. Petroleum production must be sold to Chevron, and
See also U.S. Department of the Treasury, “Venezuela-
the United States can be the only export destination.
Related Sanctions,” at https://home.treasury.gov/policy-
issues/financial-sanctions/sanctions-programs-and-country-
In 2019, Treasury sanctioned a Moscow-based bank for
information/venezuela-related-sanctions.
helping PdVSA funnel revenue from oil sales. Treasury
then sanctioned Venezuela’s state-owned gold sector
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Venezuela: Overview of U.S. Sanctions

Clare Ribando Seelke, Specialist in Latin American
Affairs
IF10715


Disclaimer
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https://crsreports.congress.gov | IF10715 · VERSION 39 · UPDATED

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