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S 261119th CongressIn Committee

Halt All United States Investments in Venezuela’s Energy Sector Act of 2025

Introduced: Jan 27, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

Halt All United States Investments in Venezuela's Energy Sector Act of 2025 would, from the date of enactment, bar U.S. persons from engaging in petroleum-related transactions in Venezuela’s energy sector. The prohibition covers transactions allowed under the Barbados Agreement (the October 2023 partial agreement between the Maduro regime and Venezuelan opposition) or any related licenses issued after that agreement, as well as transactions previously allowed under OFAC General Licenses 41 and 8M as of the day before enactment. The bill ties the prohibitions to the legitimacy of the July 28, 2024, election results and would end only when the President determines that Maduro’s regime has acknowledged those results and relinquished power to the democratically elected government or an agreed transitional government including the opposition. Implementing the prohibition would be handled by the Treasury Department (with State Department input) under authorities from the International Emergency Economic Powers Act (IEEPA), and penalties would mirror those in existing sanctions law. The bill also provides for a national-security waiver and requires other federal agencies to assist in enforcement.

Key Points

  • 1Prohibition scope: Starting on enactment, U.S. persons may not engage in petroleum-related transactions in Venezuela that are allowed under the Barbados Agreement or under licenses issued after that agreement, nor transactions allowed under OFAC General Licenses 41 or 8M as of enactment.
  • 2Termination condition: The prohibitions end only when the President certifies that Maduro’s regime recognizes the July 28, 2024 election results and relinquishe power to the legitimately democratically elected government or a transitional government including the opposition.
  • 3Waiver authority: The President may waive the prohibitions if it is in U.S. national security interests, but must provide a written report to Congress (potentially with a classified annex).
  • 4Implementation and penalties: Treasury, with input from State, would implement the section and use IEEPA authorities; violations carry penalties under the equivalent provisions of the International Emergency Economic Powers Act.
  • 5Definitions and scope: Defines “U.S. person” and identifies the “appropriate congressional committees” (Senate Banking and Housing, Foreign Relations; House Financial Services, Foreign Affairs).

Impact Areas

Primary: U.S. persons and entities with U.S. connections (citizens, permanent residents, U.S.-organized entities, or persons located in the United States) involved in Venezuela’s energy sector, especially petroleum-related activities.Secondary: Venezuelan energy sector operations, foreign subsidiaries of U.S. firms, financial institutions with U.S. ties, and the broader U.S. sanctions regime (OFAC authorities and licensing framework).Additional impacts: Could affect existing contracts or investments in Venezuela’s oil and gas sector, compliance burdens for banks and energy companies, and the political economy of Venezuela by restricting external investment until a democratically elected government is recognized. It also foregrounds U.S. policy alignment with the claimed election outcome and potential political leverage related to Venezuela’s governance.
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