The U.S. Lifted Some Sanctions on Venezuela to Facilitate Oil Sales
The Republican leader said he wants U.S. oil companies to invest up to $100 billion to restore production in the OPEC member country.
Quick overview
- The U.S. Treasury's OFAC has lifted some sanctions on Venezuela's oil industry, allowing U.S. companies to engage in various oil-related activities.
- While the new measures facilitate the sale and transportation of Venezuelan crude, restrictions on oil production remain in effect.
- A preliminary agreement has been reached to sell 50 million barrels of Venezuelan crude, with U.S. firms expected to invest significantly in the country's oil sector.
- The new authorization excludes companies from rival nations and sets specific conditions for transactions involving Venezuelan oil.
The move was announced by the U.S. Treasury’s Office of Foreign Assets Control (OFAC and will allow U.S. companies to buy, sell, transport, store, and refine Venezuelan crude oil.
The U.S. government has lifted some sanctions imposed on Venezuela’s oil industry in an effort to facilitate the sale, purchase, and transportation of its crude by American companies. While additional easing measures are expected, restrictions related to oil production remain in place.
The OFAC authorization allows U.S. firms to buy, sell, transport, store, and refine Venezuelan crude, but it does not lift existing U.S. sanctions on Venezuela’s oil production itself.
A White House official told Reuters that the measure would “help existing Venezuelan oil flow to market” and added that further announcements on sanctions relief would follow. President Donald Trump said the United States intends to maintain indefinite oversight of Venezuela’s oil sales and revenues following the removal of former President Nicolás Maduro.
U.S. eases Venezuela sanctions to support oil sales
The Republican leader said he wants U.S. oil companies to invest up to $100 billion to restore production in the OPEC member country to its historical peak levels, after years of underinvestment and mismanagement.
Meanwhile, Washington and Caracas have already reached a preliminary agreement to sell 50 million barrels of Venezuelan crude. European trading houses Vitol and Trafigura will handle the commercialization of the supply. The new Treasury authorization—known as a general license—opens Venezuelan oil trade to additional companies, provided they are based in the United States.
The measure permits transactions involving the Venezuelan government and state-owned oil company PDVSA related to the “loading, export, re-export, sale, resale, supply, storage, marketing, purchase, delivery, or transportation of Venezuelan-origin oil, including the refining of such oil, by a U.S.-based entity.”
The license explicitly excludes companies and individuals from rival countries such as China, Iran, North Korea, Cuba, and Russia. It also does not authorize payment arrangements that are not commercially reasonable, that involve debt swaps or payments in gold, or that are denominated in digital currencies.
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