US Sanctions Against Venezuela Resulted in $700 Billion GDP Loss, Says Venezuelan Vice President

Venezuelan Vice President Delcy Rodriguez has emphasized the detrimental effects of US sanctions on the country’s economy, resulting in losses of nearly $700 billion in GDP. Speaking at an international seminar in Santa Cruz de la Sierra, Rodriguez highlighted the significant impact on Venezuela’s oil industry, with losses amounting to almost $232 billion due to the sanctions.

Rodriguez stated that the US has failed to adhere to the lifting of sanctions as outlined in the Barbados Agreement, which was struck between the government and Venezuelan opposition parties in October 2023. Despite the agreement leading to a relief termed as General License 44 on President Nicolas Maduro’s government, the Biden administration reinstated sanctions in January following Maduro’s decision to bar a prominent opposition candidate from the presidential race.

In response to the US’s unilateral actions, Rodriguez advocated for Latin America to establish a new financial architecture to mitigate the adverse effects of such sanctions. She emphasized the need for trade to be conducted using regional currencies to safeguard against external disruptions. This call for a revamped financial system underscores the challenges faced by Venezuela and other countries in the region due to external pressures.

The revelations by Vice President Rodriguez shed light on the ongoing economic struggles faced by Venezuela amid external sanctions imposed by the US. The staggering losses incurred by the country’s oil industry and frozen assets underscore the severe implications of such sanctions on the Venezuelan economy. As calls for a new financial framework gain momentum, it remains to be seen how Latin American countries will navigate the challenges posed by external sanctions and ensure economic stability in the region.