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venezuela
The Collective Punishment of US Sanctions in Venezuela Must End
The economic pain of sanctions is only compounding the suffering caused by last month's earthquakes.
Jul 14, 2026
More than 3,800 people have died in Venezuela’s June 24 double earthquake, with 16,700 injured, according to current government reports. A medical crisis has emerged for thousands of survivors, and 17,800 are homeless.
There are heart-wrenching reports of people trying to dig survivors out of the rubble with their hands, with dozens of children suffering amputations because they could not be reached in time.
At a time like this, Venezuelans and the international community shouldn’t have to fight for an end to the sanctions that have destroyed the nation’s economy and that hobble its recovery, nor for the country to have access to the billions of dollars worth of assets that belong to it. But we do, because the role of sanctions and frozen assets has received far too little public attention.
From 2012 to 2020, Venezuela suffered what is likely the most severe economic contraction in a depression that has occurred without a war. Data from the International Monetary Fund (IMF) show a 74 percent decline in its GDP during that time. This is a loss of income about three times larger than what people here in the United States experienced during the Great Depression of the 1930s.
This was not a natural disaster like the earthquake, but a man-made one. IMF data show that 88 percent of this loss took place following US economic sanctions that began in 2015. The destruction accelerated with the Trump sanctions, starting in 2017, that cut the country off from most international finance and then from the vast majority of its foreign exchange earnings. These shocks would have pushed almost any country into a severe crisis, and that’s exactly what happened, demonstrating to the world how sanctions really could destroy an economy.
As a result, Venezuela was already facing a humanitarian crisis before the earthquakes hit. According to data from the European Commission, before June 2026 there were 7.9 million people (of a population of 28.5 million) who were in need of humanitarian assistance. Forty percent of Venezuelans were facing moderate to severe food insecurity, and about 56 percent of the population was in extreme poverty. Eighty-six percent were dependent on contaminated water sources.
Nearly half of Venezuela’s doctors, and many health professionals and other skilled workers — including 200,000 teachers — left the country as the economy fell apart.
A study I coauthored with Francisco Rodríguez and Silvio Rendón, with results published last July in The Lancet Global Health, estimated that broad unilateral sanctions like these — the vast majority of which are imposed by the United States — cause an additional 564,000 deaths annually. This is comparable to the lives lost worldwide due to armed conflict. A majority of these deaths were estimated to be among children under 5 years old.
The death rate among Venezuelans grew throughout Venezuela’s depression, with more than 100,000 additional deaths during the years (2015–20) of the economic collapse that had sanctions.
Venezuela has crucial resources that it is not being allowed to access. The United States and Europe are blocking the nation from more than $11 billion dollars that Venezuela should legally have. About $4 billion is sitting at the Bank of England; it was frozen there from Venezuela’s Central Bank as part of a regime change effort in 2019 led by the United States. Of course the UK has no right to seize and hold these assets that belong to Venezuela.
About $4.5 billion is at the IMF in the form of international assets (called Special Drawing Rights), Venezuela’s share of an allocation made to member countries in 2021. Access was blocked as part of pressure for a regime change, but the United States removed the president of Venezuela in January and has since recognized the current government of Venezuela. The IMF followed. But it is not clear how much of these assets Caracas will be able to use, and when. Venezuelans need this money — and also the gold that the UK is holding — right now in order to save lives, avoid the spread of disease, and rebuild.
There are some billions of dollars more that are being held by the Trump administration, despite an executive order stating that these funds “constitute property of the Government of Venezuela.” This is cash from the sale of Venezuela’s oil, over which the Trump administration has taken control.
The United Nations now estimates that the post-earthquake reconstruction of Venezuela will cost about $37 billion, which is an enormous sum for this country, 33 percent of current GDP. Economists and other scholars have called for the lifting of Venezuela’s “ongoing economic and financial sanctions, asset freezes” and, via a debt jubilee, “onerous debt burdens.”
An end to the economic sanctions is needed. The US Treasury has issued a license for four months that allows for earthquake relief, but that is not nearly enough. The Central Bank in Caracas is still under sanctions and these will continue to interfere with the post-earthquake recovery.
It is also well-documented that important financial transactions and even relief work can be prevented because of what is called “overcompliance.” Banks, financial institutions, and other companies avoid transactions because of real and perceived risk from sanctions, including the ambiguity of the US executive orders that authorize them.
The largest life-saving action in the near future of post-earthquake Venezuela will come from getting the biggest players in the world — the United States along with its European partners — to stop blocking access to Venezuela’s billions of dollars of assets. And to stop causing further damage and loss of life through economic sanctions.
That is how these sanctions actually work. They target and punish the civilian population in pursuit of a political goal. Once relatively rare, they have become a “tool of first resort,” according to the US Treasury — probably because the resulting fatalities are mostly unseen.
But more people each year, including members of Congress, are recognizing the economic violence, collective punishment, and lethal human consequences of these sanctions and are pushing back. As the illegality and human toll of these sanctions become more widely known, the US government will be increasingly forced to abandon them.
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'Unconscionable and Impeachable': Experts Appalled at Report of Marco Rubio Acting as Venezuela 'Viceroy'
"Trump has turned Venezuela into an effective US colony," said one critic.
Jul 11, 2026
Some critics of the Trump administration are reacting with horror to revelations that US Secretary of State Marco Rubio has been serving as the de facto ruler of Venezuela.
According to a Saturday report in The New York Times, Rubio for the last several months has been acting informally as the "viceroy" of Venezuela ever since its recognized president, Nicolás Maduro, was abducted by the American military in January and brought to the US to face charges related to "narco-terrorism."
The Times' sources revealed that Rubio "effectively controls Venezuela’s finances, the distribution of its natural resources, and its government" and "is deeply involved in the country’s day-to-day operations," while maintaining regular contact with acting Venezuelan President Delcy Rodríguez.
Under current arrangements, the US Treasury Department takes in revenue from Venezuela's exports, including its petroleum, and then disperses the money back to the country through its private banks with strict conditions set by Rubio over what it can be spent on.
In explaining the system, the Times likened it to "parents handing out allowances to children," adding that it gives Rubio "immense leverage over... Rodríguez, who depends on the money to pay workers and prop up the national currency."
Elizabeth Saunders, professor of political science at Columbia University, described Rubio's power over Venezuela as "insane," as well as "derelict, unconscionable, and impeachable."
"The secretary of state's time is scarce, valuable, and not outsourcable," Saunders emphasized.
Orlando J. Pérez, professor of Political Science at the University of North Texas at Dallas, said the Times report made a mockery of Rubio's professed claims to want to bring democracy back to Venezuela.
"It appears Rubio has transformed from democracy promotion warrior," Pérez commented, "to transactional realpolitik operative!"
Kenneth Roth, former executive director at Human Rights Watch, wrote that US control over Venezuela appeared similar to the kind of imperial power wielded by European nations in the 19th Century.
"Trump has turned Venezuela into an effective US colony," said Roth, "with Marco Rubio as the viceroy and Washington controlling the country’s oil revenue and dictating major foreign and domestic policies. Democracy has been relegated to the distant future."
Bradley Simpson, historian at the University of Connecticut, also saw the current US arrangement with Venezuela as a return to overt imperialism.
"We are literally back in the Dollar Diplomacy days of the 1910s," Simpson wrote, "when the United States invaded countries and took over their financial systems and ran them as effective colonies. Flagrantly illegal, enormously corrupt. Where is the organization of American states or UN in denouncing this?"
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100+ Economists, Scholars Demand End to Sanctions on Venezuela After Catastrophic Earthquakes
The experts laid out various policies they argued are "required to prevent avoidable deaths, stabilize a sanctioned economy, and allow Venezuelans to rebuild with dignity."
Jul 07, 2026
With at least 3,535 people dead, 16,740 injured, and tens of thousands still missing after a pair of major earthquakes hit Venezuela last month, over 100 economists and scholars on Tuesday jointly called for "immediate action to unfetter Venezuela's humanitarian response and reconstruction from ongoing economic and financial sanctions, asset freezes, and onerous debt burdens."
Such demands began to emerge shortly after the 7.2- and 7.5-magnitude quakes, both centered in Yaracuy, on June 24. The new letter, shared with Common Dreams by the Center for Economic and Policy Research, follows a similar message sent to President Donald Trump and Secretary of State Marco Rubio last week by CEPR, Just Foreign Policy, Latin America Working Group, Venezuelan American Community Action, Peace Action, the Quincy Institute for Responsible Statecraft, and a dozen other organizations.
The academics and economists, including several experts at CEPR as well as James Galbraith, Jayati Ghosh, Jason Hickel, Ann Pettifor, Jeffrey Sachs, Robert Wade, and Isabella Weber, highlighted that "Venezuela enters this disaster after years of unilateral coercive measures, financial sanctions, and export controls that have damaged its economy and infrastructure."
That includes decades of US sanctions. On top of those economic moves, Trump earlier this year sent troops into Venezuela to abduct President Nicolás Maduro, then took control of the South American country's nationalized oil industry. The New York Times reported earlier this week that the Trump administration has seized at least $8 billion worth of Venezuela's oil wealth this year.
In a Tuesday piece for Just Security, a pair of experts who signed the new letter—George Lopez, professor emeritus of peace studies at the University of Notre Dame, and Venezuelan economist and CEPR senior Research Fellow Francisco Rodríguez—noted that post-earthquakes, "the United States pledged $300 million to relief agencies, mobilized civilian and military teams to Venezuela that are trained on disaster relief, and issued a limited sanctions waiver for earthquake relief activities.
"But these measures are far from enough," they stressed, explaining that "the United Nations estimates the losses from the quakes stand at $37 billion," or 32% of Venezuela's gross domestic product. They suggested that "the United States should spearhead a major reconstruction effort and lift all remaining sanctions on the Venezuelan economy."
The US was eager to take control in Venezuela earlier this year.Now that the country is facing devastating loss after twin earthquakes, the US should spearhead a major reconstruction effort and lift all remaining sanctions.From Francisco Rodríguez and George A. Lopez:
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— Just Security (@justsecurity.org) July 7, 2026 at 9:06 AM
The broader group argued that "whatever one's position on Venezuela's internal politics, the current set of coercive economic measures directed at the country is an indiscriminate instrument. Sanctions on the central bank, public banking, oil industry, and debt transactions do not land surgically on officials; they incapacitate payment systems, raise import costs, block correspondent banking, freeze reserves, deter suppliers, and produce scarcity across an entire society. This is precisely the moment to remove any economic and financial obstacles to relief and reconstruction."
They called on the Trump administration specifically to lift all economic sanctions, "including any that may impact the Banco Central de Venezuela (BCV), government institutions, Petróleos de Venezuela, SA (PDVSA), public financial institutions, the oil and mining sectors, banking, transportation, shipping, telecommunications, travel, and all related activities," and to immediately issue "the Section 25B certification that is required to enable the BCV to receive, control, use, and transact through its accounts and assets at the Federal Reserve and US banks."
The experts also took aim at the United Kingdom and the Portuguese, calling on the governments to respectively work with "the Bank of England to ensure the immediate unfreezing of the BCV's gold reserves, worth about $5 billion and representing a third of the central bank's reported assets," as well as with Novo Banco, "to return $1.2 billion belonging to Venezuela's development bank, BANDES, and PDVSA affiliates, as set out in a 2023 court decision."
They further pressured the International Monetary Fund (IMF) to "ensure that Venezuela has full access to its approximately $5 billion in special drawing rights (SDRs) for emergency stabilization and imports," and to approve a $4 billion rapid financing instrument (RFI) disbursement immediately, using its emergency and natural disaster rationale, with no conditions."
Beyond those specific recommendations, the economists and scholars urged "a coordinated debt jubilee for Venezuela," writing that "all official bilateral creditors, multilateral creditors to the extent legally possible, and public agencies holding claims should cancel or suspend debt service, interest, penalties, and arrears, and pursue a comprehensive debt reduction consistent with a rights-based recovery and climate-resilient reconstruction."
"A new fund should be established—perhaps financed by the IMF's Resilience and Sustainability Trust (RST)—to repurchase distressed debt from the secondary market, with legal protections against holdout litigation and asset seizures," they proposed. "Money owed to creditors cannot at the same time rebuild hospitals, schools, housing, water systems, and the grid. A debt crisis in these conditions is a developmental and humanitarian crisis."
"Venezuela's people must not be made to pay twice: first through disaster, and then through sanctions, frozen reserves, and unsustainable debt servicing," they concluded. "We urge governments, international financial institutions, and creditors to act now, on the principle that lives, public health, and economic recovery take precedence over coercion and collection. Emergency liquidity, full sanctions relief, SDR access, RFI financing, and debt cancellation are not acts of charity. They are the minimum policy response required to prevent avoidable deaths, stabilize a sanctioned economy, and allow Venezuelans to rebuild with dignity."
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