This report discusses the economic crisis in Venezuela including its origins of the crisis and current attempts at debt restructuring by the Venezuelan government. The report also outlines U.S. interests in the Venezuelan economy and trade, the outlook for U.S. holders of Venezuelan oil company bonds, ownership of CITGO (the biggest shareholder is the Venezuelan state-oil company), and the prospects of U.S. support of economic recovery in the future.

This report, divided into three main sections, examines the political and economic situation in Venezuela and U.S.-Venezuelan relations. The first two sections describe the environment under various political leaders including President Hugo Chávez (1999-2013) and President Nicolás Maduro. The third section examines U.S. relations with Venezuela, including the imposition of sanctions on Venezuelan officials, and selected issues in U.S. relations--democracy and human rights, energy, counternarcotics, and terrorism concerns.

U.S. attention to terrorism in Latin America intensified in the aftermath of the September 2001 terrorist attacks on New York and Washington, with an increase in bilateral and regional cooperation. Over the past several years, policymakers have been concerned about Iran's increasing activities in Latin America, particularly its relations with Venezuela, although there has been disagreement over the extent and significance of Iran's relations with the region. In the 112th Congress, several initiatives have been introduced related to terrorism issues in the Western Hemisphere regarding Mexico, Venezuela, and the activities of Iran and Hezbollah, and several oversight hearings have been held.

This report discusses the current Congressional issues in relation to Venezuela. For more than a decade, Venezuela has experienced significant political changes under the rule of populist President Hugo Chávez, and for a number of years there has been concern about the deterioration of democratic institutions and threats to freedom of expression in the country.