Description: The US and Venezuela are set to restore diplomatic relations after the US appointment of Laura Dogu as charge d’affaires in Caracas. Dogu would act as the interim ambassador in the country as she would work towards restoring trust and reciprocal channels of communication between the two countries. Dogu previously served as ambassador in Nicaragua and Honduras which demonstrated the preparedness of the US government to appoint someone with intricate knowledge of South American diplomatic dynamics. Venezuela’s interim President, Delcy Rodriguez previously announced that the US started lifting some restrictions on Venezuelan foreign assets which under the supervision of the US, would be used in reconstructing the country’s healthcare sector. The US Treasury Department also announced that some sanctions would be eased approving the exportation, sale, storage and transportation of Venezuelan oil among other operations. This easement was supported by President Rodriguez who signed a bill into law, approving foreign companies to invest in Venezuela’s oil sector.
Impact: Venezuela’s reconstruction under the patronage, direction and influence from the US is seemingly moving towards the right direction. The country’s interim President continues to establish her foothold on power, balancing between demonstrating sovereign governance and appeasement to the US administration. Laura Dogu’s appointment certainly signals diplomatic rapprochement which coupled with the lifting of some sanctions and restrictions indicates that open channel bilateral communication is bringing the countries closer towards cooperation. The full restoration of Venezuela’s economic stability would be a protracted process, and immediate success is not expected, however, the rapid diplomatic developments are exhibiting positive signs for Venezuela’s stabilization post Maduro’s capture. Companies would be slow to explore investments since the country is still in a political transition and faces the risk of internal power struggles, however, depending on the ongoing developments on the diplomatic front, Venezuela could rapidly return the trust of foreign investors.