President Trump has revoked oil concessions to Venezuela, originally granted by Biden, due to Venezuela’s non-compliance with electoral conditions and failure to cooperate on migrant deportations. This affects Chevron’s operations. Trump criticized Maduro’s regime, which the U.S. does not recognize for the next term, while Venezuelan officials condemned the move as harmful. Analysts await further rulings from the OFAC regarding this issue by March 1.
President Donald Trump has officially annulled the oil concessions allowed to Venezuela by the previous administration under Joseph Biden. This decision, revealed in Washington, is attributed to Venezuela’s non-compliance with electoral conditions and failure to assist in the deportation of ‘violent criminals.’ Trump’s actions particularly affect Chevron’s operations, which had received authorization from Biden in 2022.
In a statement on his social media platform, Truth Social, Trump criticized President Nicolás Maduro’s regime for not fulfilling necessary conditions associated with the oil transaction agreement. He specifically highlighted that these electoral conditions in Venezuela have been unmet and announced the immediate rescission of the Biden Concession Agreement effective from the renewal option on March 1.
The United States government does not recognize Nicolás Maduro’s third term re-election for the years 2025-2031 and supports the claims of exiled politician Edmundo González Urrutia, who asserted victory in the elections scheduled for July 28, 2024. Urrutia was present during Trump’s inauguration on January 20.
Venezuelan Executive Vice President Delcy Rodríguez condemned Trump’s measure, calling it “harmful and inexplicable” while anticipating adverse macroeconomic repercussions for Venezuela including impacts on income streams and exchange rates. She dismissed the action as a demand from extremists within the failed opposition, reinforcing a spirit of self-relience by quoting Uruguayan independence figure José Gervasio Artigas: “Let us expect nothing but from ourselves.”
Analysts now await the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) to provide guidance on the matter by March 1. Earlier this year, following Maduro’s disregard for electoral promises, Biden reinstated most sanctions on Venezuelan oil and gas but allowed exemptions for some companies like Chevron, Repsol, and Maurel & Prom.
This year’s Trump administration previously dispatched Richard Grenell to Venezuela, who successfully negotiated the release of six U.S. detainees and arranged to facilitate the return of Venezuelan irregular migrants expelled by the U.S. back to their homeland.
The recent decision by President Trump to revoke oil concessions from Venezuela highlights ongoing tensions between the United States and the Maduro regime. The implications on both Chevron’s operations and Venezuela’s economy may be significant. As the situation develops, analysts will be closely monitoring responses from the U.S. Treasury and the Venezuelan government while the international political landscape continues to evolve.
Original Source: en.mercopress.com
