The Trump administration plans to revoke Chevron’s U.S. license to operate in Venezuela, citing unmet electoral conditions. The Venezuelan government denounces this decision as harmful. Analysts see this as a concession to right-wing pressure. Economically, the cancellation may significantly impact Venezuela, predicting a $4 billion revenue loss by 2026.
On February 27, 2025, the Trump administration announced its decision to revoke Chevron’s U.S. Treasury license, originally granted under the Biden administration, permitting the company to operate in Venezuela. This action terminates the General License 41 (GL41), with President Trump citing Venezuela’s failure to uphold electoral conditions and deport violent individuals in a timely manner.
Despite Trump’s historically adversarial stance toward Venezuela, his administration has engaged with the country, evidenced by a meeting between Special Envoy Richard Grenell and Venezuelan President Nicolás Maduro. Discussions included migrant deportations, with Venezuela recently accepting the repatriation of several groups of nationals.
The Venezuelan government condemned the reinstated sanctions, labeling them as “damaging and inexplicable”. Authorities stated that these measures, driven by U.S. economic coercion, would not impede Venezuela’s economic recovery and would ultimately harm both the U.S. and its own businesses.
Analysts suggest that this cancellation may cater to far-right political extremists as the administration navigates budget negotiations. Politicians from Florida, including Senator Marco Rubio and Representative Carlos Gimenez, have historically advocated for more stringent sanctions against Venezuela, maintaining pressure on the White House regarding its approach to Caracas.
According to Chevron’s CEO Mike Wirth, the company remains engaged with the U.S. administration, emphasizing its constructive presence in Venezuela. The revoked license allowed for automatic renewals each month, and its cancellation initiates a phase leading to a complete cessation of operations by July.
Chevron’s operations in Venezuela consist of minority stakes in four joint ventures, producing roughly 200,000 barrels per day. Economists predict that revoking GL41 could result in a loss of approximately $4 billion in Venezuelan revenues by 2026, potentially exacerbating inflation and impacting foreign currency availability.
The Trump administration’s withdrawal of Chevron’s operating license in Venezuela signifies a notable shift in U.S. policy, influenced by domestic political pressures. This decision has elicited strong condemnation from the Venezuelan government, which argues such sanctions will hinder economic recovery while adversely impacting U.S. interests. Analysts perceive this as a concession to political hardliners, reinforcing the enduring complexities of U.S.-Venezuela relations amid ongoing economic and diplomatic challenges.
Original Source: venezuelanalysis.com
