Overview of Venezuela’s Economic and Political Relationships

Venezuela’s economic and political relationships have significantly evolved in the 21st century, primarily due to its reliance on oil revenues and shifting alliances in response to domestic and international challenges. Before 2017, Venezuela engaged actively with global markets, particularly the U.S., while developing ties with emerging powers like China and Russia. However, the contested 2017 elections solidified President Nicolás Maduro's authoritarian rule and led to geopolitical isolation, especially from the Americas and Europe, exacerbated by U.S. sanctions. These sanctions severely impacted Venezuela’s economy, which is heavily dependent on oil exports. Restrictions on access to U.S. financial markets hindered debt refinancing and oil sales, causing a dramatic drop in oil revenues and a humanitarian crisis. Concurrently, Venezuela turned towards non-Western partnerships, particularly with Russia and China, for economic support. The relationship with Russia deepened significantly post-2017, as the country provided vital support through debt restructuring, military cooperation, and facilitating oil exports to circumvent U.S. sanctions. This strategic partnership helped shield Maduro's regime from international pressure and stabilize Venezuela amid ongoing crises. In this context, Venezuela forged alliances with countries like Iran, Cuba, and Turkey, creating a counter-hegemonic bloc to resist external influence.