This is barely an inconvenience for the Venezuelan regime. Oil contributes very little to the economy these days. The oil industry was dismantled many years ago and replaced mostly by drug trafficking and illegal mining. With over 9 million expats fleeing the regime, “remesas” also keep whatever is left from the economy moving. Most Venezuelans don’t work, or at least not for money, just to keep their sanity, as salaries cannot buy any basic goods. Exceptions are doctors and some emergency trade occupations like plumbers or mechanics, which are entirely $US based. Most families depend on relatives sending money from abroad. There’s also some tourism, mostly Russians and Chinese. Other than not much going on there, the 0.0001% in power already made their fortunes in illegal markets (and in crypto, as some in the regime used the limited power in the country to mine bitcoin) so they have little to worry about some dirty oil not being “sold” to Cuba or Iran. The rest of the population continues surviving however they can.
Oil contributes very little to the economy these days. The oil industry was dismantled many years ago and replaced mostly by drug trafficking and illegal mining.
Mind sourcing that? It's not what's on the Wikipedia page for Venezuela's economy, nor the CIA world factbook for the country. The largest estimate I could find for drug trafficking was 8 billion USD, which came from transparency international, an org with sketchy history on Latin American numbers. The latest petroleum export numbers I can find are much higher.
Don’t need to source it. I lived under the regime and still have many relatives there. I know exactly what I am saying by my own experience not by reading a journalist from the NYT. The drug business is very real and has deep roots in the military since the early 2000s so this is not new. Even the presidential plane has been used to transport drugs, that’s well documented. Chavez himself didn’t like it once his son got involved, but he died and Venezuela became the Wild West. There are two factions controlling the country, the ideological one and the “business” one. Both are involved in drug trafficking but the ideological branch supports Cuba and other communist regimes with free oil. Cuba hasn’t paid one dime for oil in more than 25 years. In fact many of the ships leaving Venezuela are bound to Cuba’s “customers” directly. The non ideological branch of the regime hates this “deal”, and many senior military are actually anti-Cuba, they have never been there, reason why the Cuban regime keeps Maduro in power. All of Maduro’s security ring is Cuban for that reason. The non ideological branch made a deal to stay out of oil in exchange for illegal mining. There’s a human and environmental catastrophe happening in the Amazonas state, with natives being displaced or killed and one of the most beautiful naturals reserves in the planet being destroyed. This is also well documented. Most of the gold is sold to Russia and Iran. There’s also some mining for uranium which Iran needs for their nuclear program. And that’s it, there’s really no other economy in the country. Don’t be naive believing Maduro is selling oil and keeping the country funded. As I said the economy is largely supported by “remesas” from the exodus and by the informal economy which is completely dollar based, no one takes local currency there.
