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Investor's Crypto Daily > Blog > Headlines > Economy > Economic News > Venezuela oil sanctions to be imposed under Trump’s new term: What can we expect?
Economic News

Venezuela oil sanctions to be imposed under Trump’s new term: What can we expect?

Last updated: January 25, 2025 10:09 am
By Ronald Dupree 7 Min Read
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According to recent polls, Venezuelans oppose sanctions overwhelmingly. 65% of them were implemented under Trump’s first presidency.

Contents
Performance of sanctions: An uncertain strategyPolitical surface and sanctions advocacyThe scandals and responsibility have reached a new levelFirst, dialogue and then conception: The trailing scandalVenezuela: Economic sanctions and blockade of sectorsMobility and health issues

Locals are firmly opposed to the use of cantations, believing that they cause more harm than good.

The political expert Pablo Quintero said that in this context the people are becoming more resentful, stating that sanctions not only have caused humanitarian crises, but also a sense of abandonment among people, who do not perceive any improvement in their conditions of living.

He claimed that people were collateral victims of a struggle for power in which they had not taken part.

Performance of sanctions: An uncertain strategy

Many political parties, notably opposition leaders in Venezuela, have pushed for economic sanctions, which are primarily used to coerce people unilaterally, as a way of bringing about a change.

Quintero, however, argues that these sanctions are more likely to have caused misery and less political progress.

Citizens are less willing to buy items they don’t need.

The effects of sanctions on economic growth and strategy have been identified by research.

Venezuelans, whose desire to lift the sanctions is growing louder and stronger, are demanding a discourse without prescriptive rules that takes into account their own needs and visions for the country.

Nicolas Maduro, the president of Venezuela said in a broadcast that Venezuela was ready to “endure additional sanctions”.

The bolivar lost over 30% in value against the US dollar during the fourth quarter of 2024. According to the Venezuelan Finance Observatory, Venezuela’s inflation reached an astounding 85% by 2024. This is one of the most high rates of inflation in Latin America.

Political surface and sanctions advocacy

It is easy to see how the political climate created around these sanctions resembles a theatre where global actors can perform. This includes the Donald Trump Administration, who was the main force behind the worldwide trade restrictions Order 13808 imposed by the state-run PDVSA.

Organization of American States and United States played important roles as well in developing the narrative of local politics that aligned the political leaders to these policies.

Quintero claims that this group, and the titles it is associated with, do not reflect Venezuelans’ real life experiences.

In addition to the actions of the government, the economic situation has also been harmed. This is causing pressure for the people.

Quintero said that the cost of this strategy was high. “Too many Venezuelans have been victims of internal and global upheavals, as well as of conflict in other countries”, he added.

Quintero examines also the reality of ordinary people being burdened by limited economic abilities while their leaders engage in political games.

The scandals and responsibility have reached a new level

While sanctions made headlines, in 2023 the situation worsened when Donald Trump said a controversial comment about Venezuelan oil during a Republican function in North Carolina. He added that, if he was elected, military action would have been considered.

Quintero claims that the comments do not just analyze the depths but further alienate Venezuelan nation.

He added: “It’s a geopolitical strategy that is very cynical, and does not take into account the cost to human life.”

These sentiments are part of a wider political shadow play in which military force may actually be used to harm poor people, under the pretext of humanitarian aid.

The worldview is being given a new lease of life and is now pushing an agenda that encourages foreign powers to interfer in the affairs of the country.

First, dialogue and then conception: The trailing scandal

Venezuela is paying the price of sanctions, and there are debates over military options. The solution for a better situation in Venezuela becomes more apparent.

Pablo Quintero believes that the moment of change occurs when our communication approach is modified and we make the needs of Venezuelans, and different points of views of the political groups, clear, no matter their support or attitude.

He advocates that the nation’s economic strengths should be promoted, rather than the negative effects of the sanctions.

Venezuela: Economic sanctions and blockade of sectors

Economic sanctions in Venezuela have worsened an already existing economic and humanitarian situation.

A UN report states that these restrictions had an impact on the income generated and availability of resources essential to life, such as health care, education and public services.

Fedecamaras, the Venezuelan Industrial Chamber, conducted a survey in February 2024 that found up to 81% (or more) of Venezuelan companies reported the impact the sanctions had on their business. The most noticeable consequence was the inability to hire qualified labour and purchase the necessary supplies, which further damaged the energy sector.

Mobility and health issues

Personnel flight, and failure to deliver medical equipment like immunizations or diagnostics are the main reasons for the challenges in the health sector.

Healthcare shortages have never been worse due to the right of people to health.

Rain can also cause serious problems for people who commute by using gasoline.

The transportation problem, especially for Indigenous populations, is a major barrier to their participation in the society and ability to access essential services.

It is also important to remember that Venezuela had already been experiencing a severe economic and social disaster as a consequence of political decisions made by the government.

These issues all highlight the pressures and risks that additional sanctions could bring to an economy already in a depreciating state and deteriorating politics.

What to expect from this post Venezuela oil sanctions under Trump’s new term? This post may be updated as new information unfolds

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