The Trump administration plans to revoke Chevron’s license to operate in Venezuela, reversing General License 41 granted by the Biden administration. Venezuela has condemned this action, stating it will harm their recovery and affect US businesses. Analysts suggest the decision is influenced by political pressure from Florida. The revocation may lead to significant revenue losses for Venezuela, while Chevron seeks to maintain its presence in the country despite sanctions.
On February 27, 2025, Venezuelanalysis reported that the Trump administration plans to revoke Chevron’s US Treasury license for operations in Venezuela. This decision reverses the previous General License 41 (GL41), which permitted Chevron to resume its activities in the country following an agreement made in November 2022 during the Biden administration.
President Trump criticized Caracas for failing to meet electoral conditions and for its slow action on deporting “violent criminals.” Despite earlier efforts to engage with Venezuela, such as high-level meetings involving Special Envoy Richard Grenell, Trump’s new stance indicates a shift back toward hardline policies against Caracas as he enters crucial budget negotiations.
The Venezuelan government has condemned the termination of Chevron’s license, describing it as “damaging and inexplicable.” They assert that US economic measures have exacerbated migration issues and maintain that their economy will continue to recover despite these challenges, warning that the implications will also negatively affect the United States and its businesses.
Experts suggest that canceling GL41 serves as a concession to foreign policy advocates, particularly those from Florida, who have long sought tighter sanctions against Venezuela. Furthermore, Florida politicians have expressed an eagerness for additional measures against the Maduro administration, reflecting ongoing tensions in US-Venezuela relations.
Chevron has defended its operations in Venezuela, asserting that it has maintained a “constructive presence” in the nation. CEO Mike Wirth indicated that the company is in communication with the US administration regarding its activities in the country. The license’s revocation is expected to lead to a transitional phase until the end of July, creating uncertainty about future operational allowances for Chevron.
Venezuela’s Oil Industry continues to face restrictions due to US sanctions, which have historically limited both financial operations and export capabilities. The cancellation of GL41 could result in significant revenue loss for Venezuela, with estimates suggesting a $4 billion deficit in 2026. Sanctions are expected to persist as the Biden administration navigates complex relations with both domestic and international stakeholders.
In addition, other international companies, including European firms, have received US approvals for their Venezuelan operations in recent years. Trinidad and Tobago also seeks US permission to pursue natural gas projects in collaboration with Venezuela, highlighting ongoing international interest despite the prevailing sanctions.
The impending revocation of Chevron’s license to operate in Venezuela underscores a shift back towards more stringent US sanctions under the Trump administration. The Venezuelan government has expressed strong disapproval of these sanctions, arguing that they exacerbate economic difficulties and hinder recovery efforts. Meanwhile, analysts see this move as influenced by political pressures from Florida Republicans, highlighting the ongoing complexities of US foreign policy toward Venezuela. Ultimately, the future of US-Venezuela relations remains uncertain, particularly concerning economic collaboration and energy production. The tightening of sanctions may not only impact Venezuela but also reverberate through the US and its companies involved in these sectors.
Original Source: venezuelanalysis.com
