The Trump administration is poised to compel more companies, including Chevron, to halt operations in Venezuela, intensifying pressure on President Maduro. Companies have 30 days to comply once waivers are revoked, leading to potential economic repercussions. Amidst varying strategies within the administration, foreign companies await decisions regarding sanctions and operational permissions.

The Trump administration is preparing to intensify pressure on Venezuelan President Nicolas Maduro by compelling more companies to cease operations in Venezuela. Following the directive given to Chevron Corporation to conclude its activities, officials have informed companies like Etablissements Maurel & Prom SA and an asphalt enterprise linked to Florida tycoon Harry Sargeant that they will have 30 days to comply upon the revocation of operational waivers. The U.S. Treasury may initiate these actions as early as this coming Friday.

This move to halt operations will adversely affect Venezuela’s struggling economy, exerting additional pressure on Maduro, particularly as Trump advocates for democratic reforms and the acceptance of more migrants from the U.S. Recently, the Treasury Department mandated Chevron to conclude its activities by April 3, significantly shorter than the typical six-month wind-down period.

Venezuela’s economy is heavily reliant on oil production, with Chevron and other smaller firms that received operating permissions from Washington playing a vital role amidst the deteriorating state oil company. The Trump administration holds varied opinions on the best approach towards Venezuela, presenting the possibility of a last-minute decision to permit oil companies to persist in their operations.

Foreign entities such as Spain’s Repsol SA and Italy’s Eni SpA are also awaiting the U.S. government’s decision regarding the revocation of their operational waivers, potentially subjecting them to sanctions. Joint efforts between Chevron and Petroleos de Venezuela SA accounted for a significant portion of Maduro’s revenue, with estimates suggesting a possible 7.5% contraction in the economy this year should Chevron withdraw.

Rick Grenell, an adviser to Trump, has engaged directly with Maduro in recent discussions, resulting in the release of U.S. prisoners and reinstituting deportation flights for Venezuelan migrants. Maduro has attempted to mitigate concerns regarding Chevron’s exit, claiming that it would not significantly impact production levels.

The Trump administration’s potential actions to compel more companies to cease operations in Venezuela signal an aggressive strategy to challenge President Maduro’s regime. With key foreign companies facing operational risks and implications for the Venezuelan economy, the outcome of these developments could drastically influence both economic conditions within Venezuela and U.S.-Venezuelan relations. As discussions evolve, the situation remains fluid, warranting close attention for future implications.

Original Source: www.livemint.com

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