Analysis: War in Ukraine brings US closer to adversary Venezuela – 05/18/2022
2 min read
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In times of crisis, it is common for dissidents or adversaries to agree to form an alliance for mutual benefit. The alliance between the capitalist powers of the West – especially the United States and the United Kingdom – and the former Soviet Union during World War II is one of the greatest examples of this situation.
At the time, the United States and the Soviet Union had nothing in common in terms of political system, economy, diplomacy, values and policies, but a common goal uniting the two forces: the struggle against the Axis powers – the alliance established between Germany, Japan and Italy.
At present, another war of very small scale has compromised the smooth functioning of the already weak world economy. It was the Russian invasion of Ukraine that resulted in the imposition of sanctions on the country ruled by the dictator Vladimir Putin.
The purpose of sanctions is to weaken the economy Russian And fuels Putin’s war machine, but these efforts are being thwarted by the West’s dependence on Russia’s energy sector – especially oil and natural gas.
Parallel to this dilemma, Venezuela, the world’s largest oil producer, is facing the worst crisis in its history, with uncontrolled inflation, high unemployment and 94.5% of the population living in poverty. From a survey of living conditions at a Catholic university Andres Beauty.
To exacerbate the crisis, Venezuelan President Nicolas Maduro’s regime has faced difficulties in exporting oil since the United States imposed severe sanctions on the country over allegations of human rights abuses and electoral fraud. Since the death of his predecessor Hugo Chavez in 2013.
Moreover, the United States does not recognize Maduro as the legitimate leader of the country, as does opposition leader Juan. GuideAs interim president of Venezuela.
However, despite all the differences between the two countries, Venezuela and the United States found reasons to initiate a good relationship.
While the United States sees Venezuelan oil as a viable solution to the current energy crisis, it welcomes the lifting of Venezuelan sanctions and the possibility of foreign investment in its oil sector.
Therefore, the US government agreed to ease some of the sanctions imposed on Venezuela on the condition that the government and the opposition resume talks on the call for new elections.
The world is now watching the next phase of this reconciliation, which could bring some relief to international oil prices.
Read on ‘Market Exploration’ (Exclusive to UOL Investmentos subscribers): Louisa Magazine results for the first quarter of 2022.
A hug,
Raphael Bevilacqua
Levante’s chief strategist and corporate partner
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