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Oil traders are flocking to sanctions-free Venezuela - The Economist   

The cocktail bar in one of the most expensive hotels in Caracas, the capital of Venezuela, is abuzz. A huddle of businessmen, speaking English, are in animated conversation at one table. Across the lobby, another group of visitors from India has just arrived. “It’s been a good week,” says a waiter. “The oilmen are back in town.”

It was last month’s sudden lifting of American sanctions on Venezuela, the country which boasts the world’s largest proven oil reserves, that has lured the dealmakers there. On October 18th the US Treasury Department announced that it was immediately removing almost all the restrictions it had imposed on Venezuela’s oil, banking and mining sectors for years. The easing, initially for six months, was in recognition of an agreement which representatives of the regime of Nicolás Maduro had sealed the previous day, in Barbados, with the political opposition. The deal set out some conditions over how free and fair elections might be held next year.

Removing most of its sanctions in one go marks the end of the American administration’s previous strategy, which involved an incremental loosening of restrictions. “Priorities have shifted for us all,” explains a Western diplomat in Caracas. The conflicts in Ukraine and the Middle East have sparked renewed interest in Venezuela’s potential to become an important supplier of world energy again. In September some 50,000 Venezuelans arrived at the Mexican border with the United States, a record number. Both factors pushed President Joe Biden’s government to take action.

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