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United States - Venezuela Relation UPSC NOTE

 Recent developments in US and Venezuela

  • Part of the explanation for the re-engagement between Washington and Caracas lies in the challenges presented by the shifts in geopolitical realities consequent to the ongoing war between Russia and Ukraine. 

  • Within weeks of the February 2022 invasion, the Biden administration dispatched top officials to negotiate with Caracas.

  •  Caracas, country with the world’s largest oil reserves, so as to smooth the effects of the energy crisis issuing from the conflict. 

  • Another dimension to the re-engagement were the apprehensions over the potential regional security implications of Moscow.

  •  Caracas has more or less weathered the consequences of the U.S. and EU sanctions on its energy sector, thanks to crucial support from Cuba, China, Russia and Iran.

  • From its position as Latin America’s fourth largest economy when Mr. Maduro took office in 2013, Venezuela has slumped within years to becoming one of the region’s poorest. 

  • The sanctions relief will enable Venezuela’s state-owned oil firm to resume oil production.

Caracas

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