US Feels 'No Pressure' From Industry to Lift Venezuela Sanctions, State Department Official Says

U.S. companies and exporters have not told the Trump administration that sanctions on Venezuela are hurting their business, according to Elliott Abrams, the State Department’s special representative for Venezuela. As the U.S. continues one of its most active sanctions regimes (see 1911190028) against a country it says is marred by corruption and human rights abuses, companies are becoming more understanding of U.S. foreign policy goals, Abrams said.

“There has been no pressure from Wall Street or the American business community to lift sanctions. I have felt none at all,” Abrams said during a Dec. 20 press conference. “They recognize what American policy is, and they recognize its goal.”

Abrams also said U.S. companies should expect more sanctions against Venezuela. Although some sanctions experts have suggested that the U.S. is running out of Venezuelan targets -- and said a prolonged power struggle between Nicolas Maduro and the Juan Guaido-led opposition party is leaving the effectiveness of U.S. sanctions in doubt (see 1910240049) -- Abrams said the administration can leverage foreign policy tools it has not yet used. In its fall regulatory agenda, the Bureau of Industry and Security included a notice of an upcoming final rule that would expand restrictions on exports, re-exports and transfers of goods for military end-users or end-uses in China, Russia or Venezuela (see 1911220019).

“I wouldn't say we're doing everything we can,” Abrams said. “We keep adding [sanctions], and we’ll continue to do that.” Abrams declined to speak about possible next steps. “We won’t telegraph our punches to the Maduro regime,” he said.

Abrams also addressed criticism that the sanctions are ineffective, saying the Maduro regime has not yet shown signs of submitting to U.S. pressure but that sanctions are the right approach. “Everyone hopes for change as soon as possible,” Abrams said, “[but] the regime is not really ready to have a serious discussion.” Abrams also said the U.S. will not be involved in negotiations between the Maduro regime and the opposition party. “We are not brokering discussions,” he said. “But if there are serious discussions, we want to see them succeed.”

Abrams and James Story, the administration's charge d’affaires for the Venezuela affairs unit, said the European Union and other countries, including Venezuela’s neighbors, can be doing more to impose sanctions. The officials specifically called on the EU to pursue a more aggressive sanctions approach. “It's not just the U.S. with sanctions,” Story said. “It’s the [surrounding] region and the European Union as well who have a role to play.” A senior State Department official has criticized the EU for being “very slow” to impose Venezuela sanctions (see 1909240039).

But Abrams said U.S. actions have succeeded in creating separation between Venezuela and two major supporters: Russia and China. Abrams suggested the two countries have curbed trade with the Maduro regime. “They have not diminished their political support for the regime,” Abram said, “but it’s striking that they don't seem willing to give them another dime.”