U.S. Treasury Secretary Scott Bessent mentioned to Reuters that new sanctions on Venezuela aimed at enhancing oil sales might be lifted as soon as next week. He also plans to meet with leaders from the International Monetary Fund and World Bank about re-engaging with Venezuela during that time.
In a late Friday interview, Bessent indicated that Venezuela could access around $5 billion in frozen IMF Special Drawing Rights to aid in its economic recovery.
“We are set to decertify the oil that will be sold,” he stated during a visit to Winnebago Industries’ facility. The Treasury Department is contemplating changes that may facilitate the return of oil sale proceeds, primarily stored on ships, back to Venezuela.
Bessent expressed concerns about how to effectively bring resources back to Venezuela in a way that supports its government, security, and, ultimately, the Venezuelan people.
When asked about the timeline for lifting more sanctions, he mentioned, “It could be as early as next week,” though he didn’t specify which sanctions would be impacted.
This initiative aligns with the Trump administration’s goal to stabilize Venezuela and encourage U.S. oil producers to return to the country. This comes shortly after U.S. forces detained Venezuelan leader Nicolás Maduro on drug trafficking charges in Caracas and transported him to New York.
Existing U.S. sanctions hinder international banks and creditors from engaging with the Venezuelan government without proper licenses, complicating a $150 billion debt restructuring believed essential for attracting private investment back into the country.
On Friday evening, President Donald Trump issued an executive order preventing courts and creditors from seizing oil revenues from Venezuelan accounts held in the U.S. Treasury, stating these funds need to be safeguarded to foster “peace, prosperity, and stability” in Venezuela.
Re-engagement with IMF and World Bank
Bessent, who holds significant U.S. interests at the IMF and World Bank, noted that these institutions are already in discussions about Venezuela.
He mentioned that the U.S. Treasury is ready to convert Venezuela’s IMF special drawing rights into dollars for the country’s rebuilding purposes.
Currently, Venezuela possesses approximately 3.59 billion SDRs, roughly equivalent to about $4.9 billion, which remain inaccessible to them. The SDR includes values based in various currencies like the dollar and euro.
Last year, the Treasury had supported a $20 billion swap line for Argentina, utilizing some of its SDR to stabilize the Argentine peso and assist in the electoral success of President Javier Millei’s party.
An IMF spokesperson stated that the fund is closely following developments in Venezuela but refrained from commenting on Bessent’s planned meetings next week.
It’s notable that the IMF has not worked with Venezuela in over two decades, with its last formal economic assessment concluding in 2004. Venezuela settled its final World Bank loan in 2007, and former President Hugo Chávez famously claimed that the country no longer needed to seek funding from Washington.
A source familiar with discussions within the World Bank about Venezuela indicated that the institution is in the early phases of exploring potential assistance for the country, akin to how it quickly aided Afghanistan and Syria following regime changes, as well as providing initial support to Gaza and Ukraine.
A Quick Return?
Bessent believes that smaller, privately owned companies will rapidly re-enter Venezuela’s oil sector, although some larger firms, like Exxon Mobil, may hesitate given past nationalizations of their assets.
“I think this will resemble a typical situation where private companies move in quickly. They aren’t even discussing financing,” he said.
He acknowledged Chevron’s longstanding presence in Venezuela, adding that their commitment is likely to grow significantly.
Bessent suggested that the U.S. Export-Import Bank might play a role in guaranteeing loans to Venezuela’s oil sector, echoing statements previously made by U.S. Energy Secretary Chris Wright.
