The administration of former President Trump announced on Thursday that it would relax sanctions imposed on Venezuela’s oil sector. The U.S. aims to boost oil production in this South American nation following the recent detention of its leader, Nicolás Maduro.
The Treasury Department stated that it would permit transactions essential for the extraction and sale of Venezuelan crude oil by U.S. companies in dealings with the Venezuelan authorities and the state-run oil firm, PdVSA.
This new license comes with notable exclusions, keeping sanctions intact for individuals or groups from Russia, Iran, North Korea, and Cuba.
Interestingly, it also rules out certain dealings, like transactions involving blockaded vessels, interactions with Chinese-owned entities in the region, any debt swaps, payments in gold, and even cryptocurrencies like the Venezuelan Petro.
This shift in policy coincides with President Trump’s ambitions to significantly ramp up Venezuela’s oil output. He mentioned, during a Cabinet meeting, that major oil companies are currently exploring opportunities in Venezuela. “They’ll contribute a lot of wealth both to Venezuela and to the U.S., and the oil companies stand to profit as well,” he expressed.
Furthermore, Trump indicated that he plans to reopen Venezuela’s airspace for commercial flights. This follows an emergency notice from the FAA that restricted U.S. commercial aviation over the country. “I spoke with Venezuela’s president, informing him of our intention to fully open commercial airspace. Soon, Americans will visit Venezuela safely, as the country is under tight control,” Trump remarked.
Earlier that day, the Venezuelan government had approved private investment in its oil sector, with acting President Delcy Rodríguez endorsing a reform bill that marks a significant departure from the socialist principles that have dominated the country’s governance for over two decades.
