The resumption of talks between the Venezuelan government and its main opponents this weekend in México is fueling pressure from all sides to shape the modest agenda, even though it will take far more than a handshake to fully dismantle US sanctions.
By Argus Media – Patricia Garip
Aug 12, 2021
A Venezuelan government delegation and representatives of the main opposition factions are expected to sign a Norwegian-brokered framework agreement on rules of engagement for more substantive talks set for September. Short-term objectives are establishing credible conditions for regional elections in November, freeing political prisoners and broadening a humanitarian aid channel.
Others are hoping the agenda will provide an umbrella for bolder aims.
Chevron wants the US to ease its sanctions waiver to rejuvenate its Orinoco heavy oil project and other assets. The government of President Nicolás Maduro is seeking to end a UK Supreme Court battle with opposition leader Juan Guaido’s US-backed interim administration over control of Venezuelan central bank gold reserves in the Bank of England with a deal to procure pandemic aid through the UN. Families of six detained executives of Venezuelan state-owned PdV’s US refining subsidiary Citgo want them released.
Private equity investors are also eyeing reconstruction opportunities. And PdV bondholders and arbitration claimants pine for debt restructuring, a tall order as neither side wants to assume Venezuela’s colossal liabilities, especially the potential loss of Citgo.
Little to lose
Venezuelan president Nicolás Maduro has little to lose in resuming negotiations with his main political opponents after overcoming years of US sanctions. His adversaries are diminished and the regional hostility he once faced has evaporated. But Maduro’s goal of lifting all sanctions — and returning Venezuelan oil to the open market – will require ceding more ground than his own political camp may be willing to give up.
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Read More: Argus Media – Venezuela negotiating agenda in crosscurrent
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