In comments for a recent article for ICLG, BCL Partner John Binns looks at the role that US and UK sanctions could play in the plans for US oil companies to take control of Venezuela’s oil industry. He explains that the US’ plans mean that both countries will need to review their sanctions regimes.
The article says that these plans overlook key limits set by international law, state sovereignty and Western sanctions. Under international law, Venezuela owns its natural resources, and any foreign takeover of its oil industry without the state’s consent would be illegal. It looks at Venezuela’s past nationalisation of its oil industry, later arbitration claims by foreign investors, and the limits of what international investment law can achieve in practice. It also examines the role of long-standing US and UK sanctions, which continue to restrict business activity in Venezuela’s oil sector.
Commenting on sanctions, John Binns notes that the plans “may mean amendments to the regulations themselves, reviewing and removing designations, and/or issuing general licences”, and warns that “unless there is close coordination between governments, there is a risk of mismatching regimes for a period, which may in turn cause complications and delays.”
To read the full article, click here.
