In a recent statement from Caracas on March 12, Venezuelan Vice President Delcy Rodriguez attributed a substantial economic impact to US sanctions on Venezuela, estimating a near $700 billion reduction in the nation’s Gross Domestic Product (GDP). Speaking at an international seminar in Santa Cruz de la Sierra, Bolivia, Rodriguez provided a breakdown of the losses incurred, notably highlighting that the Venezuelan oil sector alone has suffered approximately $232 billion in damages due to these sanctions. Additionally, she mentioned that over $22 billion of Venezuelan assets are currently frozen in international banking institutions, as reported by the Xinhua news agency.
The sanctions, which have been a point of contention in international relations, were addressed in the Barbados Agreement, a pact reached in October 2023 between the Venezuelan government and various opposition groups. This agreement included provisions for the easing of sanctions, which were initially partially lifted with the issuance of General License 44, providing temporary relief to President Nicolas Maduro’s administration. However, this détente was short-lived as the Biden administration reinstated sanctions in January. The US cited its decision was in direct response to the Maduro government’s disqualification of a leading opposition figure from the upcoming presidential election, a move that has further strained the dialogue between Venezuela and the international community.
Amidst these geopolitical tensions, Rodriguez called for a strategic reevaluation of financial and economic structures within Latin America. She proposed a shift towards a new financial architecture that emphasizes trade in local currencies, suggesting this as a vital measure to mitigate the impact of unilateral policies, such as those imposed by the US. This call for innovation in financial interactions underscores a broader search for autonomy and resilience in the face of external pressures, aiming to fortify Latin American economies against future geopolitical and economic challenges.
Rodriguez’s remarks at the seminar have sparked discussions on the effectiveness and repercussions of sanctions as a tool of foreign policy, highlighting the profound economic ramifications on the targeted nations. The Venezuelan vice president’s advocacy for a revamped financial system in Latin America reflects a growing sentiment in the region for greater economic independence and cooperation among its nations.
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