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

Bill Number

S. 261

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

International Affairs

Status

Introduced

Latest Action

2025-01-27: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S396; text: CR S396-397)

Last Updated

2025-05-01T21:33:05Z

AI-Generated Summary

Purpose

The legislation aims to pressure the Venezuelan government led by Nicolás Maduro to recognize the results of the July 28, 2024, presidential election—where opposition candidate Edmundo González reportedly won decisively—by prohibiting U.S. persons from engaging in certain energy sector investments and transactions with Venezuela. It seeks to halt financial support to the regime until Maduro relinquishes power to a legitimate government or transitional authority including the opposition.

Key Provisions

• Prohibitions on Transactions: Starting from the date of enactment, U.S. persons are barred from petroleum-related deals enabled by the October 2023 Barbados Agreement (an accord between Maduro's regime and the opposition on political rights and elections) or under specific Office of Foreign Assets Control (OFAC) licenses (General License No. 41 and No. 8M). These restrictions apply broadly under U.S. law and any related regulations.
• National Security Waiver: The President can temporarily lift the prohibitions if deemed vital to U.S. national security, provided a written report (possibly classified) is submitted to key congressional committees.
• Implementation and Enforcement: The Secretary of the Treasury, in consultation with the Secretary of State, will enforce the law, potentially issuing regulations and using powers from the International Emergency Economic Powers Act (IEEPA)—a U.S. law allowing economic sanctions during national emergencies. Violations carry penalties like fines or other sanctions under IEEPA. All U.S. government agencies must assist in enforcement.
• Termination: The prohibitions end when the President certifies to Congress that Maduro has acknowledged González's victory and transferred power to a democratically elected or agreed-upon transitional government.
• Definitions:
• "U.S. person" includes U.S. citizens, permanent residents, U.S.-based entities (including foreign branches), and anyone physically in the U.S.
• "Appropriate congressional committees" are specified Senate and House panels on banking, finance, and foreign affairs.

Significant Changes to Existing Law

• This bill overrides or suspends specific existing authorizations, such as those under the Barbados Agreement and OFAC's General Licenses 41 and 8M, which previously allowed limited energy transactions with Venezuela to ease sanctions.
• It expands IEEPA's application by directing the Treasury to use its emergency powers specifically for these energy sector restrictions, potentially tightening U.S. sanctions framework without needing a new national emergency declaration.

Potential Impacts

• On Government Agencies: The Treasury and State Departments will face increased administrative burdens in monitoring and enforcing sanctions, including issuing new rules and handling waiver requests. Other agencies must coordinate compliance efforts.
• On Citizens and Businesses: U.S. individuals and companies involved in Venezuela's energy sector (e.g., oil trading or investments) could lose revenue opportunities, face legal risks for non-compliance, and incur penalties for violations. Venezuelan citizens may see indirect effects through reduced foreign investment in their economy.
• On International Relations: The measure could strain U.S.-Venezuela ties further, signaling strong U.S. support for the opposition and potentially isolating Maduro's regime economically. It might influence regional dynamics in Latin America by encouraging other nations to pressure Venezuela on democratic reforms, but could also complicate U.S. energy security if it disrupts global oil markets.

Main Stakeholders Affected

• U.S. Persons and Businesses: Energy firms, investors, and traders dealing with Venezuelan petroleum, who must halt authorized activities.
• Venezuelan Government and Opposition: Maduro's regime loses potential revenue from U.S.-linked energy deals; the opposition (e.g., González and supporters) gains leverage for political change.
• U.S. Government: Executive branch (President, Treasury, State) handles implementation and waivers; Congress oversees via reporting requirements.
• International Actors: Other countries or entities involved in Venezuelan energy, such as those under the Barbados Agreement, may face ripple effects from U.S. restrictions.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on IEEPA for enforcement, which grants broad executive authority for sanctions but requires congressional notification for waivers, balancing powers. Penalties align with existing U.S. sanctions laws, ensuring consistency without creating new criminal offenses.
• Constitutional: Involves separation of powers, as the bill mandates presidential certification for termination, potentially checking executive discretion in foreign policy while empowering Congress through oversight committees.
• Political: Positions the U.S. as a defender of democracy in Venezuela, amid ongoing disputes over the 2024 election's legitimacy (not recognized by Maduro). It could polarize international views on U.S. interventionism but reinforces sanctions as a tool for promoting human rights and fair elections, without direct military involvement.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Durbin, Richard J. [D-IL]

Recent Actions

• 2025-01-27: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S396; text: CR S396-397)
• 2025-01-27: Introduced in Senate

Bill Versions

• Halt All United States Investments in Venezuela’s Energy Sector Act of 2025 — issued 2025-01-27 — PDF (6 pages)