US Eases Some Venezuela Oil Sanctions to Boost Trade
The administration of President Donald Trump on Thursday lifted certain sanctions on Venezuela’s oil industry, allowing US companies greater freedom to buy, sell, transport, store, and refine Venezuelan crude. Officials said further sanctions relief would be announced in the near future.
The Treasury Department’s Office of Foreign Assets Control (OFAC) said the new general license does not remove existing restrictions on oil production, but aims to facilitate the flow of Venezuelan crude and expand commercial opportunities for American companies.
A White House official noted that the measure would help increase the supply of Venezuelan oil to the market. The initial US-Venezuela deal already includes the sale of 50 million barrels of crude, with European trading firms Vitol and Trafigura marketing the supply.
The license allows US companies to engage in transactions with the Venezuelan government and state oil firm PDVSA, covering sales, transportation, refining, storage, and marketing of Venezuelan-origin oil. The authorization specifically excludes entities and individuals from countries such as China, Iran, North Korea, Cuba, and Russia.
Analysts described the move as a significant “America First” approach, granting broad operational permissions to US firms while maintaining restrictions for foreign companies.
The measure comes as Venezuelan lawmakers approved a reform of the nation’s main oil law, granting autonomy to private producers and formalizing a production-sharing model introduced by President Nicolas Maduro. Experts note that the exclusion of Russian and Chinese ventures—responsible for around 22% of Venezuela’s oil output—may pose operational challenges for PDVSA.
Industry observers said the new license could speed up investment and exports, which had been delayed by individual requests for US authorization in recent weeks.
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