President Trump has revoked Chevron’s permission to operate in Venezuela, impacting the nation’s economy under Maduro. This decision reverses Biden’s sanctions ease, which aimed to support oil production and secure the release of detained Americans. Experts predict significant economic repercussions from Chevron’s absence, potentially leading to a recession in Venezuela.
On Wednesday, President Donald Trump announced his decision to revoke Chevron’s operating permission in Venezuela, significantly impacting the country’s weakened economy, which is governed by Nicolas Maduro. Trump criticized the Maduro administration for failing to uphold agreements regarding the return of deported Venezuelans, which had been negotiated during a recent US envoy visit. This decision contrasts with former President Joe Biden’s easing of sanctions to facilitate Chevron’s operations in exchange for the release of detained Americans and fair elections promises from Maduro.
Biden initially relaxed sanctions to engage with Maduro, but later reinstated most of them as Venezuela failed to hold credible elections. Despite issuing concessions to Chevron, fears of rising oil prices influenced Biden’s administration’s decisions as elections approached. Trump responded to Biden’s actions by proclaiming that his administration would reverse those concessions made to Maduro and emphasize the inadequate democratic conditions in Venezuela.
Chevron has been the only US oil company operating in Venezuela after halting its activities amid earlier sanctions imposed during Trump’s first term. With an output of approximately 240,000 barrels per day, Chevron’s efforts have been crucial in revitalizing a severely declining oil sector since the 1990s. Venezuelan Vice President Delcy Rodriguez condemned the decision, warning it could adversely affect US migration policies and the legal standing of US investments abroad.
Ric Grenell, a Trump associate, travelled to Venezuela to ensure the return of expatriates, leading to the repatriation of nearly 200 undocumented migrants. The brewing economic crisis has forced over seven million Venezuelans to flee, primarily toward other Latin American nations. Chevron stated it is evaluating the implications of the administration’s decision while continuing to adhere to all applicable laws and sanctions.
According to economic experts, Trump’s recent actions may result in significant adverse effects on Venezuela’s macroeconomic environment, particularly regarding exchange rates, inflation, and overall national growth. The absence of Chevron could lead to losses estimated at $150-200 million monthly, potentially pushing the economy toward recession. Nevertheless, there may be a window for diplomatic negotiations before Chevron ceases all operations completely, fostering a search for mutually beneficial outcomes before intervention is fully realized.
In summary, President Trump’s revocation of Chevron’s operation permit in Venezuela marks a strategic shift in US foreign policy, emphasizing the administration’s position against Maduro’s government. This decision is expected to have substantial economic repercussions for Venezuela, particularly concerning funding and oil production. The actions reflect ongoing tensions surrounding migration and governance, raising concerns for both nations’ future relations and domestic stability.
Original Source: www.rfi.fr
