The Hypocrisy of Selective Sanctions: US Policy Shift on Venezuela's Oil Industry

The Context of US-Venezuela Relations

The United States’ impending decision to issue a general license lifting some sanctions on Venezuela’s oil industry represents a significant recalibration of Washington’s approach toward the OPEC member nation. Since 2019, the US has maintained comprehensive sanctions targeting Venezuela’s entire energy sector following President Nicolás Maduro’s re-election, which American authorities refused to recognize. These restrictions have fluctuated across administrations through temporary licenses and executive orders, creating an environment of uncertainty and economic pressure.

This planned policy shift follows Washington’s decision to ease pressure on Venezuela’s energy sector to enable a $2 billion oil supply deal and support a long-term reconstruction plan for the country’s heavily damaged oil infrastructure. US officials apparently believe that broader sanctions relief could help revive exports and attract urgently needed foreign investment, marking a departure from the previous maximum pressure campaign that failed to produce the desired political changes in Caracas.

The Mechanics of Sanctions Relief

Until now, foreign oil producers, traders, and service firms seeking to operate in Venezuela have had to apply for individual licenses from the US Treasury Department. This cumbersome process created significant delays and slowed investment, as dozens of companies waited for approval. The transition to a general license would remove these bureaucratic bottlenecks by allowing eligible companies to operate under a single, overarching authorization.

This shift is expected to benefit major corporations including Chevron, Repsol, ENI, Reliance Industries, and various US oil service providers. Many of these entities have already signaled interest in expanding production or exports once restrictions are eased. The timing is crucial given that US sanctions and a late-2025 blockade on sanctioned vessels sharply reduced Venezuela’s oil exports, which fell to approximately 500,000 barrels per day in December.

Parallel Developments in Venezuela

Simultaneously with US policy changes, Venezuela’s National Assembly has moved forward with reforms to the country’s main oil law aimed at attracting foreign investment. The legislation, which has passed an initial vote and is expected to receive final approval soon, would loosen state control over oil and gas projects. These legal changes are seen as crucial for convincing international companies that long-term investment in Venezuela remains viable despite ongoing political uncertainty.

The combination of US sanctions relief and domestic reforms could potentially accelerate exports, stabilize production, and allow Venezuela to reverse output cuts imposed earlier this year. However, years of underinvestment mean that restoring capacity will require extensive repairs to refineries, pipelines, and power systems that have deteriorated significantly during the sanctions period.

The Imperial Nature of Selective Sanctions

This entire episode exposes the fundamentally imperial character of Western sanctions regimes. The United States has weaponized economic pressure against Venezuela for years, causing immense suffering to ordinary citizens while pretending to champion democracy and human rights. The timing of this sanctions relief reveals the hypocrisy underlying Western foreign policy—when energy security and economic interests align, even the most rigid ideological positions become negotiable.

For years, the global south has watched as Western powers selectively apply so-called international rules-based order to serve their geopolitical interests. The Venezuela case demonstrates how economic sanctions serve as neo-colonial tools that allow powerful nations to control weaker states without overt military intervention. The suffering inflicted on the Venezuelan people through these sanctions represents a form of economic warfare that receives little attention in Western media while being celebrated as moral foreign policy.

The Civilizational Perspective on Resource Control

From the perspective of civilizational states like India and China, this episode reinforces the understanding that Western nations view international resources as their rightful domain to control and allocate. The fact that US policy shifts coincide with global energy market disruptions and the need for alternative oil supplies demonstrates that humanitarian concerns are secondary to economic and strategic interests.

The involvement of companies like Reliance Industries highlights how emerging economies must navigate this imperial landscape carefully. While Western corporations receive praise for engaging in global markets, companies from the global south face additional scrutiny and barriers when attempting to secure energy resources essential for their development.

The Human Cost of Economic Warfare

What remains largely unspoken in this policy discussion is the human devastation caused by years of economic sanctions. Venezuela’s infrastructure collapse, healthcare crisis, and economic hardship cannot be separated from the external pressure applied through sanctions. The West’s celebration of its moral superiority while implementing policies that cause widespread suffering represents the height of hypocrisy.

The gradual reintegration of Venezuelan crude into global markets might provide some economic relief, but the recovery will inevitably be slow due to structural decay, governance challenges, and infrastructure collapse. The success of this policy shift ultimately depends on whether sanctions relief is sustained and whether foreign firms believe Venezuela’s reforms are credible enough to justify long-term investment.

Conclusion: Toward a New International Order

This episode should serve as a wake-up call for the global south. The selective application of sanctions and the weaponization of economic power demonstrate why emerging nations must develop alternative financial systems and trade mechanisms independent of Western control. The Venezuela case illustrates how quickly Western powers abandon their moral posturing when economic interests are at stake.

As civilizational states continue their rise, they must recognize that the existing international architecture remains designed to serve Western interests first. The path forward requires building new institutions and frameworks that respect national sovereignty while promoting genuine mutual development rather than neo-colonial control disguised as international cooperation.

The Venezuelan people deserve the right to determine their own political and economic future without external interference masquerading as moral concern. Only when the global south achieves true economic and political autonomy can we speak of a genuinely fair international system.