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The Impact of the US Sanctions on the Venezuelan Economy
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The Impact of the US Sanctions on the Venezuelan Economy
Annotation
PII
S268667300018419-0-
Publication type
Article
Status
Published
Authors
Victor L. Semenov 
ORCID: 0000-0002-8028-5602
Affiliation: Institute for Latin American Studies, RAS
Address: Russian Federation, Moscow
Edition
Issue 1
Pages
53-66
Abstract

Venezuela, which has the world's largest oil reserves, has long attracted the interest of its powerful northern neighbor. American corporations have held key positions in the country's oil sector for many years. In the new century, the government of U. Chavez began to pursue an anti-American political and economic course, which displeased Washington, and relations between the countries deteriorated. Nevertheless, the turnover of their mutual trade grew until 2013, when an economic crisis began in the country. It had fundamental causes. The forerunner of a prolonged economic collapse was the fall in the country's GDP (the only one in Latin America) for two consecutive years during the 2008-2010 global crisis. It became a moment of truth that made it possible to assess the destructiveness of the government's populist policies, which drained the main driver of the economy - the oil industry. Since 2007, a decline in oil production began, which continues to the present day. It was this that turned into a determining factor in the country's slide by 2013 into a long and deep recession. In the future, it was aggravated by the fall in oil prices on the world market, as well as tough economic sanctions by the United States, which further exacerbated the situation in the country by the time D. Biden assumed presidential powers. Since 2019, the government has begun to pursue a course towards economic liberalization, which has led to a number of positive changes in the economic sphere. There are favorable geopolitical prerequisites for improving the situation in the country, including the position of the United States. But for the full restoration of the national economy, additional adjustments in the internal policy of the government are required.

Keywords
American corporations, key positions, populist policies, driver of the economy, oil, prices, US sanсtions, deep recession, economic liberalization, countries - allies of Venezuela, adjustments in the internal policy
Received
16.08.2021
Date of publication
01.02.2022
Number of purchasers
13
Views
844
Readers community rating
0.0 (0 votes)
Previous versions
S268667300018419-0-1 Дата внесения правок в статью - 31.01.2022
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References

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