Venezuela: Overview of U.S. Sanctions

For over 15 years,the United States has imposed sanctions in response to activities of the Venezuelan government and Venezuelan individuals. The earliest sanctions imposed related to Venezuela’s lack of cooperation on antidrug and counterterrorism efforts. The Obama Administration imposed targeted sanctions against individuals for human rights abuses, corruption, and antidemocratic actions. The Trump Administration significantly expanded economic sanctionsin response to the increasing authoritarianismof President Nicolás Maduro (in power since 2013). In January 2019, the United States recognized Juan Guaidó, president of the democratically elected, opposition-led National Assembly, as interim president

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The Trump Administration then imposed sanctions on Venezuela’s state oil company (Petróleos de Venezuela, S.A., or PdVSA), central bank, and government to pressure Maduro to leave power. As of January 22, 2021, the Treasury Department hadimposed sanctions on roughly 166 Venezuelan or Venezuelan-connected individuals and the State Department had revoked the visas of more than 1,000 individuals and their families. Despite these and other measures, Maduro remains firmly in power, and his party now controls a de facto National Assembly seated on January 5, 2021. Some analysts have urged the incoming Biden Administration to maintain all sanctions to pressureMaduro into negotiations with the opposition. Others have suggested the removal of broad sanctions that have hurt the Venezuelan people without hastening Maduro’s departure; they urge a renewed focus on targeted sanctions implemented in coordination with U.S. allies. Terrorism-Related Sanctions Since 2006, the Secretary of State has made an annual determination that Venezuela is not “cooperating fully with United States anti-terrorism efforts” pursuant to Section 40A of the Arms Export Control Act (22 U.S.C. 2781).

 The most recent determination was made in May 2020. As a result, the United States has prohibited all U.S. commercial arms sales and retransfers to Venezuela since 2006. In 2008, Treasury imposed financial sanctions on two individuals and two travel agencies in Venezuela for financially supportingthe radical Lebanon-based Islamic Shiite group Hezbollah. Pursuant to Executive Order (E.O.) 13224, those sanctions relate to terrorist funding. Drug Trafficking-Related Sanctions Since 2005, pursuant to procedures in the Foreign Relations Authorization Act, FY2003 (P.L. 107-228, §706; 22 U.S.C. 2291j), the President has made an annual determination that Venezuela has failed demonstrably to adhere to its obligations under international narcotics agreements. 

President Trump made the most recent determination for FY2021 in September 2020 but waived foreign aid restrictions for programs that support the interim government. Treasury has imposed economic sanctions on at least 22 individuals with connections to Venezuela and 27 companies by designating them as Specially Designated Narcotics Traffickers pursuant to the Foreign Narcotics Kingpin Designation Act (P.L. 106-120, Title VIII; 21 U.S.C. 1901 et seq.).Designated individualsincludecurrent and former Venezuelan officials,such as Oil Minister and former Vice President Tareck el Aissami. Targeted Sanctions Related to Antidemocratic Actions, Human Rights Violations, and Corruption In response to increasing repression in Venezuela, Congress enacted the Venezuela Defense of Human Rights and Civil Society Act of 2014 (P.L. 113-278; 50 U.S.C. 1701 note). Among its provisions, the law required the President to impose sanctions against those whomthe 

President identified as responsible for significant acts of violence, serious human rights abuses, or antidemocratic actions. Congress extended this act through 2023 in P.L. 116-94. In March 2015, President Obama issued E.O. 13692 to implement P.L. 113-278, and Treasury issued regulations in July 2015 (31 C.F.R. Part 591). The E.O. targets (for asset blocking and visa restrictions)those involved in actions or policies undermining democratic processes or institutions; serious human rights abuses;prohibiting, limiting, or penalizing freedom of expression or peaceful assembly; and public corruption.

 It includes any person who is a current or former leader of any entity engaged in any of those activities, as well as current or former government officials. As of January 19, 2021, Treasuryhadimposed financial sanctions on 113Venezuelans and at least eight entities pursuant to E.O. 13692.

 The targeted individuals have included President Maduro; his wife, Cecilia Flores, and son, Nicolás Maduro Guerra; Executive Vice President Delcy Rodriguez; Diosdado Cabello (Socialist party president); eight supreme court judges;the leaders of Venezuela’s army, national guard, and national police; governors; the director of the central bank; andthe foreign minister.In May 2019, Treasury lifted sanctions against the former head of Venezuela’s intelligence service, General ManuelCristopher Figuera, who broke ranks with Maduro. In December 2020, Treasury imposed sanctions on two executives and a firm that administered legislative elections on December 6, 2020; the United States, the European Union, and most Latin American countries have rejected these elections as illegitimate.

Disclaimer This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material.

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