President Trump announced the cancellation of a U.S. permit for Chevron to export oil from Venezuela, citing Maduro’s failure to meet democratic conditions. This permit, previously authorized by Biden, has generated significant revenue for Maduro’s government. The move intensifies U.S. pressure on the administration amid ongoing political turmoil and declining economic stability in Venezuela.
In a significant policy shift, President Donald Trump announced the termination of a U.S. permit that allowed Chevron Corp. to export Venezuelan oil, thereby cutting off a crucial financial resource for the Maduro administration. The decision comes amid accusations that President Nicolás Maduro has failed to uphold democratic standards in the recent election and has not adequately processed deportation for immigrants.
Trump criticized the prior concessions made by the Biden administration to Maduro, asserting that the current administration’s measures to support democratic efforts in Venezuela were inadequate. Although Trump’s post did not name Chevron specifically, it referenced a general license crucial for the company’s operations in Venezuela, which the Biden administration had authorized in 2022 after negotiations with Maduro for a democratic election.
Despite the authorization, the presidential election held in July 2024 did not meet international standards, leading to criticism from various sectors, including opposition groups within Venezuela. Estimates indicate that Maduro’s government has benefited from approximately $4 billion due to this permit, which was on track for renewal soon.
Responding to the announcement, a Chevron representative acknowledged awareness of the development and expressed the company’s intent to comply with U.S. regulations. Chevron has consistently asserted its commitment to conducting business in accordance with U.S. laws and sanctions.
Venezuela, endowed with the largest proven oil reserves globally, has historically relied on its oil resources to sustain its economy. However, factors such as corruption and mismanagement, alongside U.S. sanctions, have led to a severe decline in oil production and economic stability.
The termination of the permit to export Venezuelan oil marks a decisive action by the Trump administration aimed at diminishing the financial support to Nicolás Maduro’s government. This move arises from concerns regarding democratic practices in Venezuela, emphasizing the ongoing tensions between the U.S. and Maduro’s regime. The consequences of this decision could further exacerbate Venezuela’s economic situation as it faces mounting challenges from mismanagement and sanctions.
Original Source: apnews.com
