On March 4, the U.S. mandated Chevron to halt operations in Venezuela within 30 days, impacting President Nicolás Maduro’s administration, which relies heavily on Chevron’s oil exports. This decision signifies a shift in former President Donald Trump’s policies towards Venezuela from dialogue to renewed sanctions, amid pressures from Republican constituents. Experts warn this could lead to a recession in Venezuela and exacerbate refugee outflows.

On March 4, the United States directed Chevron to cease its operations in Venezuela within a month, significantly impacting the struggling Venezuelan government. Currently, Chevron is responsible for nearly a quarter of Venezuela’s crude oil exports, which are crucial for the financial sustenance of President Nicolás Maduro’s regime. The Treasury Department’s edict was deemed unrealistic by industry experts, considering the short time frame allocated for such a substantial operational shift.

This development illustrates a stark pivot in former President Donald Trump’s Venezuela policy. During his initial administration, he enforced strict measures aimed at the Maduro regime, including sanctions and restrictions on U.S. oil companies. However, upon his return to office, Trump initially appeared to favor dialogue with Maduro, endorsing terms that would facilitate the release of U.S. citizens in exchange for the acceptance of deported migrants from Venezuela.

The political landscape shifted dramatically upon heightened pressure from Republican constituents in Florida, who advocate for support of pro-democracy factions facing electoral challenges. In response to concerns over insufficient compliance by Maduro’s government, Trump reverted to denouncing Caracas for its failure to conduct fair elections. Experts warn the cessation of Chevron’s exports could lead Venezuela into recession and exacerbate the outflow of refugees, with the regime potentially losing an estimated $150 million to $200 million monthly.

Maduro’s administration criticized the U.S. government’s actions as detrimental to the Venezuelan populace, with Vice President Delcy Rodriguez remarking, “The new U.S. government is trying to hurt the Venezuelan people. It’s a self-inflicted blow that is going to increase fuel prices.” Meanwhile, Chevron’s stock price has experienced a decline of approximately 2.8 percent over the past week, despite oil markets reacting with relative stability due to separate production increases within the OPEC cartel.

The U.S. government’s order for Chevron to halt operations in Venezuela marks a significant downturn for the Maduro administration, raising critical questions about the future of Venezuela’s economy and its oil sector. Given the existing fiscal difficulties and potential humanitarian ramifications, the situation warrants close monitoring. The evolving dynamics in U.S.-Venezuela relations reflect ongoing complexities as political pressures continue to shape policy decisions.

Original Source: www.straitstimes.com

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