Biden Administration’s Controversial Deal with Chevron and Venezuela
Reports indicate that the Biden administration secretly allowed Chevron to pay millions to Venezuela, breaching initial sanctions. The supplementary waiver enabled these payments under the guise of compliance, stirring political controversy. Chevron remains the only major U.S. oil company operating in Venezuela, having resumed operations under an agreement promoting democratic reforms, which have yet to materialize.
The Biden administration has reportedly allowed Chevron to transfer hundreds of millions to the Venezuelan government, despite a prior license forbidding such payments. This decision was facilitated by a supplementary waiver, enabling Chevron to comply with US law while remitting taxes and royalties to President Nicolás Maduro’s administration. Initially, a waiver from the Treasury permitted limited operations in Venezuela, a setup dismantled by the previous Trump administration.
Chevron stated that it conducts its global operations in full compliance with all applicable laws and regulations, including those related to sanctions. Furthermore, the US Treasury Department did not provide comments on the situation. While the general license under which Chevron operates allows for oil production and exports, it explicitly prohibits payments to the Venezuelan government or its controlled entities.
Notably, a previously undisclosed amendment to this waiver permitted essential business payments, according to anonymous sources. Last year, Chevron reportedly documented approximately $300 million in accrued taxes to Venezuelan authorities. U.S. Representative Maria Elvira Salazar condemned the arrangement at the time and called for the revocation of Chevron’s waiver.
Chevron remains the only significant U.S. oil entity active in Venezuela, following governmental confiscations under Hugo Chavez. Sanctions under the Trump administration halted Chevron’s operations, but in 2022, Biden officials negotiated an agreement aimed at persuading Maduro to hold democratic elections in exchange for allowing Chevron to resume activities. This increase in oil production has provided economic stabilization for Venezuela but has also prompted Maduro to renege on various democratic pledges.
The regime’s undemocratic actions have included detaining thousands of citizens and deterring political opposition. U.S. Secretary of State Marco Rubio criticized the Biden administration for their dealings, stating that Chevron’s operations inadvertently bolster the Maduro regime without fulfilling the promised democratic reforms. The exact amounts Chevron has paid could not be independently confirmed.
Juan Gonzalez, former senior director for the Western Hemisphere at the White House National Security Council, pointed out that revoking Chevron’s license would only benefit the black market and further empower Maduro. As Chevron faces increased scrutiny from Trump regarding its operations, there are discussions about extending a deadline for its joint ventures with state-owned PDVSA. According to insiders, this extension may come with conditions that tax revenues aid in migrant deportations rather than support the Maduro regime directly.
The Biden administration’s actions regarding Chevron’s payments to Venezuela reveal a complex intersection of compliance with U.S. sanctions and the controversial relationship with the Maduro government. While facilitating Chevron’s operations was intended to promote economic stability in Venezuela, the adverse effects on democratic reforms raise concerns. Overall, the evolving situation highlights the challenges faced by U.S. foreign policy regarding Latin America and the unpredictability of outcomes in geopolitical negotiations.
Original Source: www.deccanherald.com
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