The United States has announced the revocation of a key license that allowed Venezuela to export oil to the U.S. through joint ventures with American energy company Chevron. The decision is expected to have significant economic implications for Venezuela, which relied on the agreement for revenue in U.S. dollars.
Former President Donald Trump, who recently took office, stated that the license was being revoked due to the Venezuelan government’s failure to meet “electoral conditions” and delays in accepting deported individuals from the U.S. The Venezuelan government called the decision “damaging” and warned that it could contribute to an increase in migration.
The license, originally granted by the Biden administration in 2022, permitted Chevron to conduct limited natural resource extraction in Venezuela in compliance with U.S. sanctions. However, it prohibited direct payments of taxes or royalties to the Venezuelan government. Chevron has stated that it operates within all applicable legal and regulatory frameworks.
Some opposition figures in Venezuela have previously advocated for the license’s removal, arguing that it financially benefits President Nicolás Maduro’s government. The license had been issued as part of U.S. efforts to encourage free and fair elections in Venezuela. However, it remained in place even after the Venezuelan electoral council declared Maduro the winner of the 2024 presidential election—a result disputed by opposition groups and several foreign governments, including the U.S.
The decision follows a recent meeting between U.S. envoy Richard Grenell and Maduro in Caracas, during which Venezuela released six detained U.S. citizens and agreed to facilitate the return of deported Venezuelans from the U.S. The revocation of the license coincides with ongoing U.S. efforts to address migration concerns, as Venezuelans make up a significant portion of migrants arriving at the U.S. border.
Following the announcement, global oil prices increased by more than 1% on Thursday.
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