U.S. Treasury Secretary Scott Bessent announced that Washington may lift some sanctions on Venezuela as early as next week, a move intended to incentivize American companies to invest significantly in the country’s oil sector. This development follows the recent capture of Venezuelan President Nicolás Maduro by U.S. forces, who are now facing trial in New York.
In an interview, Bessent conveyed optimism regarding the potential for de-sanctioning Venezuelan oil, stating, “We’re de-sanctioning the oil that’s going to be sold.” President Trump has indicated support for the interim government in Caracas, describing it as a likely ally for the U.S. He suggested that no additional military operations would be necessary, given the current conditions in Venezuela post-Maduro’s removal.
Treasury Secretary Bessent emphasized the importance of reinvigorating oil revenue to stabilize Venezuela’s economy and ensure essential services for its citizens. However, he did not clarify which specific sanctions might be lifted. The U.S. Department of Energy has indicated that selective sanctions would be rolled back to facilitate the transport and sale of Venezuelan crude oil in the global market.
Furthermore, Bessent plans to discuss the situation with leaders from the International Monetary Fund (IMF) and World Bank, focusing on how their organizations might re-engage with Venezuela. Trump has called upon U.S. energy executives to consider investing at least $100 billion in the Venezuelan oil industry to help lower domestic oil prices. Despite some optimism among executives, ExxonMobil’s CEO warned that without substantial legal and financial assurances, Venezuela remains “uninvestable.”
In a recent executive order, Trump prevented the seizure of Venezuelan oil revenue held in U.S. Treasury accounts, framing it as essential for ensuring stability in Venezuela.
Why this story matters
- Potential economic impact on both the U.S. and Venezuela due to fluctuations in oil prices.
Key takeaway
- The U.S. may lift sanctions on Venezuela to encourage investments in its oil sector following the removal of Maduro.
Opposing viewpoint
- Critics argue significant changes are needed in Venezuela before it can be considered a viable investment opportunity.
