Sanctions and Venezuelan Migration

This paper examines the potential impact of different US economic sanctions policies on Venezuelan migration flows. I consider three possible departures from the current status quo in which selected oil companies are permitted to conduct transactions with Venezuela’s state-owned oil sector: a return to maximum pressure, characterized by intensive use of secondary sanctions, a more limited tightening that would revoke only the current Chevron license, and a complete lifting of economic sanctions. I find that sanctions significantly influence migration patterns by disrupting oil revenues, which fund imports critical to productivity in the non-oil sector. Reimposing maximum pressure sanctions would lead to an estimated one million additional Venezuelans emigrating over the next five years compared to a baseline scenario of no economic sanctions. If the US aims to address the Venezuelan migrant crisis effectively, a policy of engagement and lifting economic sanctions appears more likely to stabilize migration flows than a return to maximum pressure strategies.