Venezuela continues to be affected by a lengthy political and economic crisis, with businesses and individuals suffering from an economic recession, high inflation, shortages of basic goods and a decrease in the country’s exports, which has had a notable affect on its ability to trade, sell oil and attract foreign investments, mainly due to economic sanctions imposed on the country by both the US and the EU. The turmoil has only increased following Nicolás Maduro’s disputed victory in the July 2024 presidential elections, which has not been recognised by the majority of foreign governments and led to protests in Venezuela and in cities around the world.
However, there have been some positive developments for Venezuelan law firms over the last year. The increasing use of the US dollar has facilitated new banking and corporate transactions and the brief lifting of US sanctions on the oil and gas sectors has led to an increase in interest from foreign investors. While high-value financing and private equity transactions have been quiet in Venezuela over the last few years, recently there has been an uptick in smaller transactions. In addition, the market is seeing increasing innovation and the emergence of a start-up ecosystem. The withdrawal of several international companies from Venezuela has also created work for firms advising on the sale of assets and other related issues.
The oil and gas sector is at the heart of Venezuela’s economy and is a core supply of work for law firms in various practice areas, particularly in relation to Chevron’s joint ventures with state-owned PDVSA, which continue to operate despite the sanctions environment. Venezuela also remains interested in developing its renewable energy sector, although this is still in its infancy at the moment.
Other practice areas remain heavily affected by the geopolitical situation. In the dispute resolution sphere, very few cases make it to court compared to ten years ago, and work remains limited in the intellectual property arena as firms would previously have received a high volume of instructions from US practices with clients seeking to protect their IP rights worldwide.
In terms of labour matters, firms have been sought out for advice on Venezuela’s return to work policy, which has led to an increase in workplace health and safety inspections. In addition, the increase in employment opportunities in the oil and gas sector due to the lifting of sanctions may create more work in future.
However, as inflation remains high and sanctions have since been reimposed (after Maduro failed to hold free and fair elections), the situation is still difficult.
In terms of the legal landscape, the market is split between full-service local firms, boutiques which specialise in a few specific practice areas, and full-service international law firms. Lega, D'Empaire and Mendoza, Palacios, Acedo, Borjas, Paez Pumar & Cia. are the leading names among the full-service local practices, with other established firms including Altum Abogados, S.C., Araquereyna and Ponte Andrade & Casanova. Among the international law firms that have an established presence in Venezuela, Dentons and Baker & McKenzie, S.C. are the most notable names, while InterJuris Abogados advises clients on Venezuelan matters from offices in Caracas, Miami and Madrid. Leading boutiques include longstanding IP specialists Antequera Parilli & Rodríguez and Hoet & Partners, and LABOR – Gestión de Gente, which focuses on labour and employment matters.