Both sides used meeting in Caracas to present what one of the sources described as “maximalist” demands, Reuters reports, reflecting longtime tensions between US and its ideological foe Venezuela which has backed Russia’s war on Ukraine.
US and Venezuelan
officials have discussed the possibility of easing oil sanctions on
Venezuela but made scant progress toward a deal in their first
high-level bilateral talks in years, five sources familiar with
the matter said, as Washington seeks to separate Russia from one
of its key allies.
A US delegation led by Juan Gonzalez –– the top White House
Latin America adviser –– and Ambassador James Story held talks at
the Miraflores palace with socialist President Nicolas Maduro
and his Vice President, Delcy Rodriguez, the sources said on Sunday.
Both sides used Saturday’s meeting in Caracas to present what one of the sources described as “maximalist” demands, reflecting longtime tensions between the Western Hemisphere’s main power and one of its biggest ideological foes.
US officials saw the meeting as a chance to gauge whether
Venezuela, one of Russia’s closest Latin American allies, is
prepared to distance itself from President Vladimir Putin over
his invasion of Ukraine, a source in Washington said.
Washington also wants to identify alternative oil supplies
to fill the gap if it seeks a boycott of Moscow’s energy
industry. Venezuela could boost crude exports if Washington
eases sanctions.
The White House, the US State Department and Venezuela’s
Information ministry declined comment.
The US willingness to re-engage after years of shunning
such contact appeared to be a boost for Maduro.
Venezuela’s financial lifeline
The meeting came as Venezuela’s financial lifeline to Russia
is fraying under sanctions on Moscow following its military
onslaught in Ukraine, which Russia calls a “special operation”.
Caracas used the talks to press for US sanctions relief.
Venezuela has asked Russia in recent days to unfreeze oil
proceeds at several Russian banks blacklisted by the United
States, especially the Promsvyazbank (PSB), where Venezuela’s
state-run oil company PDVSA and the Defence Ministry have bank
accounts, two separate sources said.
In 2019, as part of US sanctions on Venezuela, another
bank widely used for trade with Russia, the Evrofinance
Mosnarbank, was blacklisted, forcing PDVSA to move its
collecting accounts to other banks.
In the talks, Washington sought guarantees of free
presidential elections, broad reforms of Venezuela’s oil
industry to facilitate production and exports by foreign firms
and the government’s public condemnation of the Ukraine
invasion, which Maduro has defended, three people familiar with
the matter said.
As a concession, the US officials were willing to consider
temporarily allowing Venezuela to use the SWIFT system, which
facilitates financial transactions between banks worldwide, to
move money to other accounts, one of the sources said.
Maduro sought a total lifting of sanctions prohibiting
Venezuela’s oil exports, the removal of sanctions on him and
other Venezuelan officials and the return to the state’s control
of PDVSA’s US subsidiary Citgo Petroleum, sources said.
Easing oil sanctions could start by allowing companies
including US Chevron Corp, India’s ONGC and
Europeans Eni, Repsol and Maurel & Prom
to trade cargoes of Venezuelan oil. Those firms have
made separate requests to Biden’s administration, but no
decisions have been made.
‘Anxious for sanctions relief’
Even if Washington does not accede to Maduro’s demands, he
could use the US meeting to pressure Russia to allow
Venezuelan money to continue flowing, two of the sources said.
“Yes, Maduro is anxious for sanctions relief. No, he is not
interested in shifting alliances. This is tactical,” Eric
Farnsworth, head of the Washington office of the Council of the
Americas, said on Saturday on Twitter.
“(The) US must be
clear-eyed about this, not naive.”
The Caracas meeting was requested by Maduro’s government
through multinational law firm Dentons, previously used by other
state entities for debt negotiations, two of the sources said.
A Dentons representative in Caracas did not immediately
respond to a request for comment.
The US officials agreed to a follow-up meeting but no date
was set, sources said.
Aides to Venezuelan opposition leader Juan Guaido were only
notified about the meeting on Saturday morning. Guaido was
recognised by the United States and dozens of other nations as
Venezuela’s rightful leader after they dismissed Maduro’s 2018
re-election as a sham, but several countries have since dropped
their recognition.
In the encounter, the US officials reiterated their demand
for the release of six former Citgo executives jailed in
Venezuela and other detained US nationals, but did not offer
any kind of swap involving businessman Alex Saab, a key Maduro
ally detained in the United States –– which has been a key demand
by Maduro to return to talks with the opposition.
Source: Reuters
US, Venezuela make ‘scant progress’ in talks over easing oil sanctions
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