Venezuela quakes: How will sanctions impact aid operations?
Financial sanctions are known to limit the flow of aid, but political influence is also a concern amid the devastation. Venezuela has declared a state
Financial sanctions are known to limit the flow of aid, but political influence is also a concern amid the devastation. Venezuela has declared a state of emergency after powerful back-to-back earthquakes collapsed buildings in cities that included the capital, Caracas, killing at least 164 people and wounding close to 1,000. After the earthquakes on Wednesday, the United States said it was in touch with Venezuelan authorities and was mobilising assistance for the South American nation, which has historically languished under crippling sanctions imposed by Washington. The economic chokehold was partially lifted after US forces abducted the country’s then-President Nicolas Maduro in a raid in January. The interim government led by Maduro ally Delcy Rodriguez has been on stable terms with US President Donald Trump’s administration, which has since sought to re-establish US investment in the country’s oil sector. Trump was among the first leaders to pledge assistance to Venezuela. “The U.S.A. stands ready, willing, and able to help! I have instructed all agencies of our government to get ready to move quickly,” the president wrote on his Truth Social platform. “We will be there for our new and great friends.” Rodriguez responded by thanking Trump for “offering support and solidarity to the people of Venezuela in the face of this tragedy that has plunged us into mourning”. While the partial lifting of sanctions – including on Rodriguez, who served as vice president under Maduro – allows Venezuela to transact more freely with US companies and financial institutions, experts said two concerns dominate discussions about the aid operations. “On the one hand, that aid will not be able to reach those in need,” said Sarah Schiffling, deputy director of Finland’s HUMLOG Institute, which researches humanitarian logistics and supply chain management at the Hanken School of Economics in Helsinki.
“On the other, that this disaster will be used by the US to gain more influence in Venezuela.” Here’s what we know What sanctions are there on Venezuela? Besides the US sanctions, which have targeted specific individuals and groups since 2005, the European Union and United Kingdom have also imposed sanctions on Venezuela since 2017 over what they called political repression and backsliding on democracy under Maduro. According to the EU, “the measures include an embargo on arms and on equipment for internal repression, and the imposition of travel bans and asset freezes on listed individuals”. The US lifted sanctions on Rodriquez herself this year, and in April, the US Department of the Treasury announced it would issue new licences to allow transactions with certain Venezuelan banks and individuals. Rodriguez argued the move was not enough to help Venezuela out of its ongoing economic crisis and pressed for more relief. “We reiterate the need to advance towards a Venezuela free of sanctions, as a means of providing institutional legal certainty to investors coming to our country – a setting where they are guaranteed sustained investment over time and a forward-looking perspective,” Rodriguez wrote on social media at the time. How is aid impacted by sanctions? Schiffling, who lectures on supply chain management at Hanken, said sanctions are known to have secondary effects that limit the flow of humanitarian assistance. “Financial sanctions can make it difficult for NGOs to send money to the affected country to pay staff or suppliers,” she said. “There can also be additional administrative burdens that slow down the operations and make it more difficult to import goods and bring staff into the country.” Additionally, aid agencies may be wary of inadvertently falling foul of limitations and consequently halt or slow down deliveries.
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