The United States is easing its sanctions on Venezuela following an agreement between the South American nation's government and opposition to allow next year's election to be monitored by

international observers.

Sanctions will be relaxed on Venezuela's oil, gas, and gold sectors, marking a significant shift in US policy.

The upcoming election in Venezuela is scheduled for the second half of next year. However, sanctions related to the suppression of protests and the erosion of democracy will remain in effect.

The United States has emphasized that the relaxation of sanctions could be reversed if the electoral pact collapses.

A new general license, issued by the US Treasury Department, grants Venezuela, which had been under substantial sanctions since 2019, the authorization to produce and export oil to its preferred markets for the next six months. No specific time limit has been set for the gold sector.

US Secretary of State Antony Blinken stated that Venezuela must "define a specific timeline and process for the expedited reinstatement of all candidates" by the end of November. He also called for equal opportunities for all presidential candidates and the release of "all wrongfully detained US nationals and Venezuelan political prisoners."

The agreement between the Venezuelan government and opposition was signed in Barbados on Tuesday, comprising 12 key points. These include commitments to grant all candidates access to both public and private media and ensure their freedom of movement throughout the country.

Furthermore, both sides have agreed to update voter registries, both domestically and abroad, to enable millions of Venezuelan emigrants to exercise their right to vote.

However, there is a disagreement between the opposition and the government over whether the agreement permits the exclusion of the opposition's frontrunner, María Corina Machado.

The Trump administration had imposed stringent sanctions on Venezuela in response to President Nicolás Maduro's 2018 re-election, which the US deemed "illegitimate." Nevertheless, relations between the two nations have improved under President Joe Biden.

The United States has a vested interest in alleviating the crisis in Venezuela, given that the dire state of the Andean country's economy has compelled over seven million Venezuelans to emigrate, with many seeking refuge in the US. Additionally, Venezuela possesses the world's largest proven oil reserves, and a reduction in US sanctions on Venezuela's oil sector would have economic benefits for both nations. Photo by Paolo Costa Baldi. License: GFDL/CC-BY-SA 3.0, Wikimedia commons.