Venezuela’s loss of an important US license that allowed it to export oil to markets around the world and secure investments is expected to impact the volume and quality of its oil sales, including triggering a wave of authorization requests with the United States.
US officials had warned that, absent progress from President Nicolás Maduro’s government in implementing the electoral roadmap agreed last year, the US would not renew License 44, which has eased oil sanctions in October since October. force over the last five years.
On Wednesday, Treasury gave companies 45 days to close out pending transactions, particularly crude oil and fuel sales, through a more restrictive license.
It also said it would process specific authorization requests for business with Venezuela, a commitment that Venezuelan officials have said they expect the United States to honor. Many companies have been waiting for years for Washington to approve energy deals involving Venezuela.
But the Treasury also explained that “carrying out new activities, including new investments previously authorized by License 44, will not be considered easing activity”, raising questions about the type of transactions permitted.
Authorizations previously granted to oil companies such as Chevron, Repsol and Eni, which guarantee the flow of oil from Venezuela to the United States and Europe, have not been revoked.
POLITICAL MOVEMENTS
The withdrawal of the most significant element of US sanctions relief marks a major setback in relation to US President Joe Biden’s policy of restoring relations with Maduro.
However, this is hardly a return to the “maximum pressure” campaign waged during former President Donald Trump’s administration and could change depending on progress towards the election in the coming months.
Venezuela’s opposition is negotiating the choice of its candidate for the July 28 presidential election, after both the winner of the primary and her alternate were barred from registering.
The license allowed Venezuelan state company PDVSA to expand exports to pre-pandemic levels, improve cash flow and secure the import of diluents and fuel for the domestic market.
Source: Terra
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