The US government is poised to revoke authorisations for foreign partners of Venezuela’s PDVSA, primarily affecting companies that export oil. This follows new sanctions and secondary tariffs imposed by the Trump administration, illustrating a significant policy shift towards Venezuela. The situation poses challenges for foreign companies operating in the South American nation and casts uncertainty on future operations amidst criticisms from President Maduro.

The United States government has reportedly informed foreign partners of Venezuela’s state oil company, PDVSA, about the impending revocation of authorisations for exporting Venezuelan oil and its byproducts. This action is believed to be a directive from President Donald Trump’s administration, intended to adjust the sanctions regime imposed on Venezuela.

In the recent past, the Biden administration had granted these authorisations to facilitate oil supply to international refineries, including those in Spain and India. Notable companies that received licenses include Spain’s Repsol, Italy’s Eni, France’s Maurel & Prom, India’s Reliance Industries, and US Global Oil Terminals.

Following the imposition of secondary tariffs by the Trump administration on Venezuelan oil, most companies had already ceased their imports. The situation was further complicated when Trump indicated the cancellation of a vital license for US producer Chevron, mandating the company to conclude its operations in Venezuela by a revised deadline of May 27.

This revocation of key licenses signifies a shift in US foreign policy regarding Venezuela, particularly as the administration focuses on controlling migration from the country. It remains uncertain whether all foreign partners of PDVSA share the same deadline to wind down operations. According to US Secretary of State Marco Rubio, foreign entities operating in Venezuela are expected to receive updated directives.

President Nicolas Maduro of Venezuela has denounced the sanctions as an “economic war,” especially in light of the lack of recognition of his upcoming re-election by the United States.

The United States is likely to revoke authorisations for foreign partners of Venezuela’s PDVSA, reflecting a significant shift in foreign policy and sanction strategy. Companies that engaged in exporting Venezuelan oil are now facing revocation of their licenses amidst heightened tariffs and operational restrictions. As these developments unfold, they further complicate Venezuela’s economic landscape and diplomatic relations with the United States.

Original Source: www.business-standard.com

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