Sanctions on Venezuela are more necessary now than ever. In the wake of Venezuela’s fraudulent election that resulted in Nicolás Maduro’s illicit retention of power, hundreds of government-owned businesses continue to generate billions of dollars to fuel Maduro’s repression and quell dissent. Washington must now aggressively sanction the businesses backing Maduro’s rule.
Since the election, thousands of Venezuelan protestors have stormed the streets in protest of Maduro’s illegal grip on power. Mass arrests quickly followed, as did a criminal investigation into opposition candidate Edmundo Gonzalez and his party’s leader, Maria Corina Machado, for urging the army and police to “join the side of the people” and abandon Maduro. With the military’s continued support, the country’s dictator shows no sign of stepping down peacefully.
Leading up to Venezuela’s election last month, I urged the Biden administration to publish a comprehensive list of Venezuelan state-owned companies believed to be major sources of revenue for Maduro’s regime. It would be a major step in combating Maduro’s sanctions evasion strategy, which is centered on companies with clear and direct ties to the country’s military that are forming secretive alliances with foreign partners.
Despite appearing to operate independently, these companies are clear extensions of Maduro’s sanctioned government — and the U.S. should identify them as such.
With Maduro continuing to cling to power, the question remains whether anyone has leverage over the strongman. It would be easy to think that the U.S., with all of its sanctions on Venezuela, may be somewhat limited in what it can do. But that is not true. Full enforcement of the existing sanctions against Maduro’s regime has never occurred.
In August 2019, President Trump issued Executive Order 13884, which prohibits all dealings with “the state and Government of Venezuela, any political subdivision, agency, or instrumentality thereof.” State-owned companies run by Maduro’s military cronies fall squarely in that camp, but enforcement against dealings with them has been limited at best and seemingly nonexistent at worst.
For instance, Venezuela’s Corporación Ecosocialista Ezequiel Zamora, S.A. — or CORPOEZ — is a government-owned company that focuses primarily on the marketing and export of recycled materials, including scrap metal. Its president, Carlos Ramón Enrique Caravallo Guevara, has been sanctioned by the European Union for his leadership role in a Venezuelan military division that engaged in human rights abuses. Under Guevara’s leadership, CORPOEZ became the exclusive entity authorized to export scrap metal from Venezuela.
Since then, Venezuela’s scrap iron exports increased from just $75 million in 2012 to $570 million in 2022. While the vast majority of Venezuelan scrap metal is exported abroad, at least 329 tons appear to have arrived in the U.S. in 2022. It is possible this was done without the regime’s knowledge, but CORPOEZ and therefore Maduro’s sanctioned regime is more likely to have been a party to the exports and benefited as a result.
CORPOEZ is just one of hundreds of companies owned and operated by the Maduro regime that sustain his grip on power. Dealings with these companies are already prohibited, but there are cracks in the system. Fortunately, the path to filling them is easy. The Biden administration should urgently identify every state-owned company that is part of Maduro’s regime and list them in an annex to Executive Order 13884. Moreover, the military officials who sit atop these companies should be designated for supporting Maduro’s sanctioned government. Only then will they begin to feel the impact of U.S. sanctions.
The stakes in Venezuela have never been higher. As Maduro's grip on power tightens, the U.S. cannot afford to turn a blind eye to the businesses that generate billions of dollars and keep a dictator’s regime afloat. These companies are not just bystanders; they are active participants in the suffering of millions. The Biden administration’s lack of comprehensive action against Maduro’s state-owned enterprises not only undermines U.S. sanctions but emboldens a dictator who thrives on exploiting loopholes.
We must stand firm with the Venezuelan people in their struggle for democracy. They are crying out for freedom, and their courage in the face of brutal repression should serve as a rallying cry for all of us. If Washington fails to act decisively now, it will not only betray the Venezuelan people but also signal to other autocratic regimes that the world’s leading democracy is unwilling to stand up for its values. The time for half-measures has passed; the Biden administration must fully enforce existing sanctions and expand them to target every corner of Maduro’s financial empire.
As opposition leader Maria Corina Machado recently proclaimed, “Nobody said this would be easy, but let the world be very clear: There is no turning back. This is irreversible and will continue until the end.” The U.S. must embrace this resolve and demonstrate that there is no safe haven for those who support tyranny. The fight for Venezuela’s future is far from over, but with the necessary actions, it can be won.
Max Meizlish is a senior research analyst for the Center on Economic and Financial Power at the Foundation for Defense of Democracies. He previously worked as a sanctions enforcement officer at the Treasury Department’s Office of Foreign Assets Control.
