CARACAS, Venezuela (AP) — This week, the U.S. government will end a crucial permit that allowed Chevron Corp. to pump and export oil from Venezuela. President Donald Trump announced this, highlighting that it undermines financial support for the country.
In a post on Truth Social, Trump accused Venezuelan President Nicolás Maduro of failing to meet democratic standards during the July 2024 elections. He also criticized the government for not quickly addressing immigrant deportations.
Trump stated, “We are reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro on the oil transaction agreement.” While he didn’t mention Chevron specifically, the timing of his announcement aligns with the permit that helps avoid economic sanctions.
This license was granted by President Joe Biden’s administration in 2022. It aimed to support democracy in Venezuela after Maduro agreed to cooperate with the political opposition for fair elections. However, the elections were overshadowed by reports of irregularities, and Maduro was sworn in again last month, despite claims from his opponent having more votes.
The U.S. had resisted calls to rescind the license, which allowed Maduro’s government to receive about $4 billion through it. This permit has accounted for around 25% of Venezuela’s oil production.
Chevron reacted to the news, stating that they are considering the implications of the announcement. They emphasized their commitment to comply with U.S. laws and regulations.
Venezuela used to have the strongest economy in Latin America due to its vast oil reserves. Sadly, rampant corruption and mismanagement, along with U.S. sanctions, have severely impacted oil production over the years.
Since 2013, more than 7.7 million Venezuelans have fled the country. Many sought refuge in Latin America and the Caribbean, but recent years have seen a growing number heading to the U.S.
The announcement has disappointed Maduro’s government, which hoped for better relations with the U.S. after a recent visit from an envoy. Venezuelan Vice President Delcy Rodriguez criticized the decision, stating that similar actions in the past led to increased migration from the country.
The U.S. does not recognize Maduro as the legitimate president. Under both Biden and Trump, they support Edmundo González, a retired diplomat, as the election winner.
Chevron has a long history in Venezuela, dating back to the 1920s. They operate through joint ventures with the state-owned Petroleos de Venezuela S.A. (PDVSA). Before sanctions were imposed, these joint ventures produced around 200,000 barrels daily. The license granted last year helped increase production, but it remains unclear how Maduro’s government has used the funds, as they stopped sharing financial data years ago.
Opposition leader Maria Corina Machado recently accused Maduro of misusing funds for repression and corruption. She stated, “This is a huge step; it sends a clear message that Maduro is in huge trouble.”
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