Understanding HR328: REVOCAR Act of 2025

The REVOCAR Act of 2025 is designed to stop U.S. individuals and companies from investing, trading, or operating in Venezuela's energy sector. This means that U.S. businesses and citizens cannot provide goods, services, or financial support to the Venezuelan state oil company, PDVSA, or its affiliates. The bill also targets the current Venezuelan government led by Nicolás Maduro, as well as any future non-democratic governments. The U.S. Treasury Secretary, with input from the State Department, is responsible for enforcing these rules. They will use existing laws to ensure compliance, and anyone caught breaking these rules could face penalties. The restrictions are set to end on December 31, 2027, unless the U.S. President determines that the Venezuelan government has recognized the results of the July 28, 2024, election and transferred power to the rightful winner, Edmundo González. Additionally, the President has the authority to issue temporary waivers for national security reasons. These waivers can last up to 90 days and can be renewed, but each waiver must be reported to Congress. This bill builds on previous sanctions by removing exemptions that allowed some U.S. involvement in Venezuela's energy sector, aiming to apply more pressure on the Venezuelan government.

This bill could have significant impacts on both the U.S. and Venezuela. For Venezuelan citizens, it aims to support the democratic process by pressuring the current government to recognize election results and transfer power. This could potentially lead to a more stable and democratic Venezuela, benefiting its citizens in the long run. For everyday Americans, the bill could influence gas prices. By restricting U.S. involvement in Venezuela's oil industry, the global oil supply might tighten, leading to higher prices at the pump. Additionally, the bill could affect U.S. energy companies that have investments in Venezuela, potentially leading to financial losses.

- Pressures for Democratic Transition: Supporters argue that targeting Venezuela's oil revenue will force the government to acknowledge democratic election results and transfer power. - Reduces Funding for Human Rights Violations: By cutting off financial resources, the bill aims to reduce the government's ability to fund repressive activities against its citizens. - Closes Loopholes in Existing Sanctions: The bill removes exemptions that allowed some U.S. involvement in Venezuela's energy sector, strengthening the overall sanctions. - Flexibility for National Security: The President can issue temporary waivers to address urgent national security needs, ensuring the U.S. can respond to unforeseen circumstances. - Time-Limited Sanctions: The bill sets a clear end date for the sanctions, incentivizing a swift transition to democracy in Venezuela.

- Impact on U.S. Energy Companies: Critics argue that the bill could harm U.S. companies with investments in Venezuela, potentially leading to financial losses. - Potential Increase in Global Energy Prices: Restricting U.S. involvement in Venezuela's oil industry might lead to higher global oil prices, affecting consumers. - Challenges in Enforcement: There are concerns about the effectiveness of enforcing these sanctions, as past efforts have seen evasion through third countries. - Humanitarian Concerns: Cutting off oil revenue could worsen Venezuela's economic crisis, potentially leading to increased migration and humanitarian issues. - Narrow Focus: Some argue that the bill's focus on the energy sector may not be sufficient to bring about broader political change in Venezuela.