Washington, DC ― The Center for Economic and Policy Research (CEPR) is calling for the US and other countries to lift all sanctions against Venezuela in the wake of Wednesday’s devastating earthquakes. The ability of governments, civil society, and individuals to provide funds and humanitarian support to Venezuela will be severely hindered while these sanctions remain in place, CEPR experts warned.

“We have seen in previous instances how US sanctions have restricted and hampered earthquake relief efforts,” CEPR Director of International Policy Alex Main said. “Most immediately, the Trump administration can avoid the kinds of mistakes made by the previous administration in response to the Syria earthquake in 2023, when lives were lost due to the Biden administration’s belated and limited sanctions waivers. The Venezuelan government must be free to receive and allocate earthquake relief and to send humanitarian support to those who need it. Current US and other sanctions threaten to hobble the overall earthquake response.”

While the Trump administration has issued a series of general licenses to allow foreign businesses and banks to operate in Venezuela in spite of US sanctions, the continued existence of these sanctions significantly discourages international economic and financial actors from expanding operations there.

Research by CEPR economists and other international sanctions experts has shown that overcompliance leads to sanctions having a harsher and broader impact than policy-makers may expect, as aid groups, corporations, and other foreign actors pull back out of fear of running afoul of sanctions. Despite the changed nature of the US-Venezuela relationship following the US abduction of President Nicolás Maduro amid a military raid on Caracas, the Trump administration maintains many sanctions that could hinder foreign aid and relief efforts.  Similarly, the governments of the United Kingdom and Portugal should act immediately to secure the release of billions of dollars of Venezuelan assets held by the Bank of England and Novo Banco so that these financial resources, which are the property of the Venezuelan state, can be deployed to support humanitarian and reconstruction efforts. 

“We must remember that Venezuela suffered the worst depression in the history of the world, without a war, due to illegal US economic sanctions,” said Mark Weisbrot, CEPR Co-Director. “IMF data shows a loss of 74 percent of GDP in eight years. This deadly destruction was not a mistake, but an expected result that would happen to any country that was cut off by sanctions from the international financial system, and also from the vast majority of its foreign exchange earnings from exports.

“Tens of thousands, and more likely hundreds of thousands, of Venezuelans died as a result of those sanctions. The United States is therefore obligated to help prevent further loss of life in Venezuela,” he said. 

###