US Won’t Renew License for Venezuelan Oil Firm

The Biden administration plans to let the Treasury Department’s general license for transactions with Venezuela’s state-owned energy company expire April 18 because the South American country has not fully met its democratic commitments, the State Department announced April 17.

The administration will issue a 45-day “wind-down” license to ensure an “orderly process” following the expiration of General License 44, the department said. The Office of Foreign Assets Control will consider, on a case-by-case basis, requests for specific licenses to continue activities beyond the wind-down period.

The U.S. in October lifted certain sanctions on Venezuela’s oil, gas and gold sectors after the country's government and opposition formally agreed to work together on conditions for fair presidential elections (see 2310180070). But after the State Department in January said the Venezuelan government failed to take steps to hold those elections, the department said it would be reversing the sanctions relief (see 2401300014) to potentially include General License 44, which authorizes certain transactions with Petroleos de Venezuela.