Biden is doing this mostly to isolate Russia even further but also for other reasons. Will be interesting to see how this plays out in the rest of South America politically. Brazil is the wild card with Moda having a divided legislature I'd wager dollars/doughnuts that American business lobbyists in Rio will be pushing hard for more trade with N. America - esp raw materials.
There is a longer term play here though. Biden has been slowly consolidating support in the Senate for more trade with South America, as well has a South American trade mission coming up which may lay out what a NAFTA-like treaty for South America would look like. From what I gather Biden is checking off a list of all the crazy shit he dreamed up when he was the chair of all those committees in the Senate.
Prediction (2024 Election): If the Dems win Biden will be racing Elon to Mars with a crew of old-man Democrat actors like Arnold.
Western oil companies in Venezuela means less room for Russia to move the needle on big OPEC cuts. The US can bury Russia when it comes to lobbying/bribing foreign governments.
Western oil companies will bring back a lot of money/technology/engineering with them that Venezuela has been missing under sanctions. If Maduro is agreeing to this, that means a plan for more companies coming back is likely. The US has been brain draining Venezuela since sanctions started and if this goes through a lot of skilled workers will go back to Venezuela.
It's only work if the US agree that they'll not place sanction again on Venezuela, basically an agreement which US probably not going to sign nor honor it. Seeing how recession going to hit in 2023, they better hope it's a mild and a quick one, if not then the nuts job will back in power and place sanction.
Biden is doing this mostly to isolate Russia even further but also for other reasons. Will be interesting to see how this plays out in the rest of South America politically. Brazil is the wild card with Moda having a divided legislature I'd wager dollars/doughnuts that American business lobbyists in Rio will be pushing hard for more trade with N. America - esp raw materials.
There is a longer term play here though. Biden has been slowly consolidating support in the Senate for more trade with South America, as well has a South American trade mission coming up which may lay out what a NAFTA-like treaty for South America would look like. From what I gather Biden is checking off a list of all the crazy shit he dreamed up when he was the chair of all those committees in the Senate.
Prediction (2024 Election): If the Dems win Biden will be racing Elon to Mars with a crew of old-man Democrat actors like Arnold.
Schwarzenegger? He's a Republican.
Which means Biden will definitely include him.
How does this isolate Russia?
Western oil companies in Venezuela means less room for Russia to move the needle on big OPEC cuts. The US can bury Russia when it comes to lobbying/bribing foreign governments.
Western oil companies will bring back a lot of money/technology/engineering with them that Venezuela has been missing under sanctions. If Maduro is agreeing to this, that means a plan for more companies coming back is likely. The US has been brain draining Venezuela since sanctions started and if this goes through a lot of skilled workers will go back to Venezuela.
It's only work if the US agree that they'll not place sanction again on Venezuela, basically an agreement which US probably not going to sign nor honor it. Seeing how recession going to hit in 2023, they better hope it's a mild and a quick one, if not then the nuts job will back in power and place sanction.
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