The license granting Chevron Corporation the right to extract and export oil derived from Venezuela is expiring this week, as the President, Donald Trump, stated in an announcement on Wednesday; thus, there ends what has become a lifeline of financial sustenance for the South American nation.
Trump said- We are taking back the concessions given by clever Joe Biden
Trump announced on his Truth social network, accusing President Nicolas Maduro of not meeting the democratic requirements for the presidential election held in July with the pace at which he deports Venezuelan immigrants slated for deportation. “We are rolling back the concessions that the smart Joe Biden made to Nicolas Maduro of Venezuela on the oil transaction agreement,” Trump wrote.
No mention was made by Trump regarding California-based Chevron or the permit, formally called general license. This license frees the company from economic sanctions and allows it to export and sell Venezuelan-origin oils within the USA. However, it is the only license related to Venezuela whose issuance and renewal dates match the dates Trump mentioned in his social media posts.
Biden allowed Venezuela to extract and export oil in 2022
The Biden administration granted the license in 2022 after Maduro committed to working with Venezuela’s political opposition in a democratic election. But this election, supposedly scheduled for July 2024, would not be either fair or free, and Maduro was sworn into office last month for a third six-year term in light of credible allegations that his opponent garnered more votes.
For months now, the Biden administration has resisted calls from the Venezuelan opposition and others to revoke the license, arguing that its goal is to “support the restoration of democracy.” The opposition estimates that Maduro’s administration has gathered around $4 billion with the license, which was last week eligible for renewal. Over time, the license had become responsible for about a quarter of Venezuela’s oil production.
“We are aware of today’s announcement and are considering its implications,” Chevron spokesman Bill Turenne said in a statement. “Chevron conducts its business in Venezuela in compliance with all laws and regulations, including the sanctions framework provided by the U.S. government.”
Venezuela has one of the largest oil reserves in the world
Once, it was able to use its oil as the engine for the strongest economy in Latin America. Today, along with the gossip, mismanagement and, finally, economic sanctions by the United States, oil production went steady down.
They have not fled since 2013, when the oil-dependent economy crashed and Maduro assumed the presidency, and now more than 7.7 million Venezuelans are outside the country. They settled mainly in other Latin American nations and the Caribbean; however, since the pandemic started, they have focused on migrating to the U.S.
Venezuela said- Trump administration’s decision is harmful and incomprehensible
Venezuela’s Vice President Delcy Rodriguez branded Wednesday’s announcement of the new U.S. sanctions “harmful and incomprehensible,” as if they had dashed the dreams of a revival by the Maduro government after Trump’s envoy visited the capital, Caracas, on February 1 in what was seen as an effort to mend ties with the White House. Shortly after that visit, Venezuela’s government began taking back emigrants already deported from the United States.
