CARACAS (Reuters) - Venezuela will allow the European Union's Ambassador to remain in Caracas, reversing an earlier decision to expel the envoy in response to sanctions the bloc imposed on officials loyal to the socialist government, the foreign ministry said on Thursday.


The EU subjected 11 officials to financial sanctions, citing their actions against the democratic functioning of Venezuela's National Assembly.


"Cooperation between both parties can facilitate the path of political dialogue," said the ministry, adding that Venezuelan Foreign Minister Jorge Arreaza and EU Foreign Minister Josep Borrell had spoken about the issue over the phone.