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U.S. Sanctions Drove Companies from Venezuela

Between 2017 and 2019, the Trump administration imposed economic and oil sector sanctions on Venezuela, restricting U.S. companies from transacting with state oil company PDVSA. This move led to immediate pressure on American energy firms, including Halliburton, Schlumberger, and Baker Hughes, causing them to scale back or suspend operations in Venezuela. The sanctions made it legally risky and commercially impractical to continue operations in a market where contracts could be frozen overnight, and payments blocked. Though Venezuela’s economic crisis isn’t solely due to US sanctions, they accelerated the decline by limiting access to capital, technology, and international markets. Hence, U.S. sanctions played a crucial role in driving out American companies from Venezuela, creating an uncomfortable truth in today’s political debate, as these conditions are partly shaped by Washington’s policies.

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