Source: Fortune.com
Summary
The US Treasury Department has eased sanctions on Venezuela’s state-owned oil and gas company, Petróleos de Venezuela S.A (PDVSA), allowing US companies to do business with them, with some limitations. The move aims to boost global oil supplies during the Iran war and incentivize new investment in Venezuela’s energy sector. The license provides targeted relief from sanctions but does not lift the penalties altogether. Payments cannot go directly to sanctioned Venezuelan entities, and deals involving certain countries and entities are not allowed.
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The numbers tell one story.
Venezuela’s oil-dependent economy gets a boost, but critics argue that the move rewards Venezuela’s leadership while repression and corruption continue. The US will control the cash flow, and payments cannot go directly to sanctioned Venezuelan entities. The decision is part of the Trump administration’s phased-in plan to turn around Venezuela. The move highlights the pressure to ease soaring oil prices as the US wages a war with Iran.
The US is effectively “running” Venezuela and selling its oil, as President Trump has said.
Author: Evan Null
