WASHINGTON: The US government is preparing to impose new measures as soon as next week to stifle Venezuela’s oil exports, including a move not to renew Chevron Corp’s license to do business with state-run company PDVSA, sources familiar with the matter said. The United States imposed harsh sanctions on Venezuela in early 2019, in an effort to oust socialist President Nicolas Maduro, whose 2018 re-election was considered a sham by most Western countries.
Venezuela’s oil exports have dropped by one-third since then, but more than a year on, Maduro remains in power, backed by Venezuela’s military as well as Russia, China and Cuba. Frustrated by the socialist leader’s grip on power, the Trump administration has increased pressure on Venezuela’s oil industry in recent weeks. The US Treasury Department last month blacklisted Geneva-based Rosneft Trading, a unit of Russia’s oil giant Rosneft, for conducting business with PDVSA and warned global energy firms that more such measures were expected.
Now, US officials are targeting oil-for-fuel swaps and loan repayments through oil deliveries, threatening to close off the last areas left open by the government for firms still dealing with PDVSA. According to the sources, who spoke on condition of anonymity, Washington has already told some of PDVSA’s customers to stop oil-for-fuel swaps if they want to fully comply with new sanctions. Companies taking Venezuelan oil as repayment for debt could also have to cease those transactions.
A 90-day period set by Washington to wind down foreign purchases of Venezuelan oil ends on May 20. “The United States is asking us to follow a policy of zero Venezuelan crude going out, zero fuel going in. So swaps so far allowed would have to end by the wind-down period deadline,” an executive from one PDVSA customer said. — Reuters
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