What exactly has happened in Venezuela?

Moreover, because Venezuela is under U.S. sanctions, many oil extraction facilities have failed to receive updates or maintenance, causing Venezuela’s oil production to plummet steadily. To maintain its grip on power, Maduro resorted to measures that defy economic principles: For instance, to ensure people have food, Maduro mandated that essential goods—such as bread and milk—be sold at artificially low prices (even below cost). The result was that merchants made no profit, prompting widespread business closures or halts in imports—exacerbating severe shortages. For another example, when falling oil prices reduced government revenue and left insufficient funds for costly welfare programs, Maduro chose the simplest solution: printing money. This triggered hyperinflation in Venezuela, rendering its currency virtually worthless. Yet another example: the government banned private foreign-currency exchange. The official exchange rate diverged drastically from the black-market rate—fostering massive corruption. Elites exploited the official rate to purchase U.S. dollars, then resold them on the black market for profit—while simultaneously crippling import-export trade. At this juncture, the United States seized the opportunity and imposed what it billed as the harshest sanctions in history. In 2017 and 2019, the Trump administration signed executive orders cutting off Venezuela’s government and state-owned oil company from international financial markets. This meant Venezuela—despite sitting atop vast oil reserves—could neither monetize its oil nor borrow internationally. Simultaneously, the U.S. directly froze all Venezuelan assets within its territory. The most prominent case was Citgo Petroleum Corporation—valued at tens of billions of dollars—which the U.S. confiscated outright and handed over to opposition leader Juan Guaidó to spend freely. Even Venezuela’s 31 tons of gold held at the Bank of England were seized by the British government. Amid such internal turmoil and external pressure, Venezuela’s economy collapsed. 86% of its population fell into poverty; 85% of enterprises ceased operations; GDP in 2024 stood at just $82.7 billion—only 22% of its 2012 level; per capita income dropped to $2,427; government debt reached $164 billion; and the minimum monthly wage fell below $1. A country boasting the world’s largest proven oil reserves—and yet its citizens cannot even afford basic food. Venezuela did not sit idly by. To gain leverage and compel the U.S. to ease sanctions, Venezuela turned its attention toward Guyana’s oil-rich Essequibo region—brandishing threats and declaring it would be established as Venezuela’s ‘Essequibo State’! But the problem is: exploration rights in the Essequibo region belong to ExxonMobil! Thus, after Trump took office—as a de facto representative of U.S. petroleum interests—the confrontation between Trump and Maduro became inevitable. Accordingly, Trump quickly branded Venezuela a narcotics hub, escalating military pressure. Yet the issue remains: even if Venezuela produces drugs, it mainly cultivates cocaine—not the synthetic opioids flooding the U.S. market. Among countries supplying drugs to the U.S., Venezuela likely doesn’t even rank among the top ten. Nonetheless, the U.S. pressed ahead regardless—accusing Maduro of heading Venezuela’s drug cartel, the ‘Sun Cartel,’ and of flooding America with narcotics. It declared a full-scale ‘war on drugs.’ Thus, beginning in September, the U.S. launched an operation codenamed ‘Southern Spear,’ preparing for military action against Venezuela. Of course, during these past months—even while the U.S. repeatedly sank Venezuelan fishing vessels—diplomatic channels remained open. Trump demanded Maduro’s resignation and offered him a safe exit route.

How does Marco Rubio remotely control Venezuela?

Although their interactions occasionally appear lighthearted, Rubio’s relationship with Rodríguez is far from an equal partnership. It epitomizes the exercise of American power under the Trump era: a logic of power that disregards sovereignty and international law, embracing instead a ‘winner-takes-all’ ethos. The Venezuelan government declined to comment when approached for response. The Trump administration declined to answer specific questions regarding Rubio’s authority over Venezuelan affairs. Rubio himself downplayed his role and avoided discussing related work, repeatedly declining interview requests. Tommy Vietor, spokesperson for the U.S. Department of State, stated in a press release: “Through renewed cooperation and sound economic management, Venezuela has the potential to reemerge as a stable and prosperous partner—enabling its citizens to benefit from its abundant natural resources and strengthened ties with the United States.” Especially notable is Washington’s direct control over Venezuela’s public revenues—a form of influence distinct from its military and financial leverage over other nations. The U.S. Department of the Treasury collects the bulk of Venezuela’s export revenues, then disburses those funds back to Venezuela through its banking system—a dynamic akin to parents giving an allowance to their child. Rubio and his team set conditions governing how these funds may be spent and who may receive them. This mechanism enabled Rubio to halt Venezuela’s most egregious corruption. It also conferred certain benefits upon the Venezuelan government: by channeling revenues through the protection of the U.S. Treasury, the government shielded itself from numerous creditors demanding repayment of billions of dollars in unpaid debts. However, this arrangement also grants Rubio immense leverage over Rodríguez, who depends on these funds to pay civil servants’ salaries and stabilize the national currency’s exchange rate. Moreover, Rubio oversees the implementation of U.S. sanctions against Venezuela—determining which entities may operate in the country and under what terms. He is actively reshaping Venezuela’s oil sector and pushing for greater market access for U.S. companies. In return, Rodríguez consults Rubio before appointing key officials—including the defense minister. Since two earthquakes struck Venezuela last month, Rubio has worked intensively to consolidate the country’s interim government. The U.S. has deployed 900 troops to Venezuela, pledged nearly $400 million in aid, and shipped crates of cash to the Venezuelan government. The earthquakes complicated Rubio’s stated mission—to restore democracy in Venezuela (Rubio admitted last month: “That’s been a setback in this regard”). Yet the country’s recovery capacity remains vital to Trump’s ultimate objective: securing Venezuela’s oil resources for U.S. interests. This arrangement is highly unusual—occurring fully eight decades after the U.S. relinquished its last major formal colony, the Philippines. Nonetheless, Trump has explicitly signaled his desire to revive the era of American expansionism—even floating ideas about acquiring Greenland, Canada, and the Panama Canal. His actions in Venezuela represent his most successful venture in this regard—but they carry significant risks. Trump’s critics accuse the U.S. of seizing Venezuela’s resources while simultaneously propping up an authoritarian regime by retaining most of Maduro’s loyalists. This arrangement also binds the U.S. to a deeply unpopular, unelected government facing mounting domestic demands for political change.

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