US Might Give Chevron a License to Pump Oil in Venezuela

The move would ease some sanctions on Venezuela

The US might soon grant Chevron a license to pump oil in Venezuela in a move that would ease crippling sanctions that were imposed on the South American country by the Trump administration.

According to The Wall Street Journal, the easing of sanctions is contingent on the implementation of a $3 billion humanitarian project that is expected to be announced by President Nicolas Maduro and his opposition this weekend. The project would be paid for with Venezuelan funds that have been seized by the US.

The license Chevron would be granted would still be limited as it would allow the oil company to regain partial control of its oil production in Venezuela, but it won’t be able to build new facilities until debts are repaid.

The Trump administration began imposing harsh sanctions on Venezuela in 2017 and really ramped them up in 2019 when the US recognized opposition figure Juan Guaido as “interim president” and backed a failed coup attempt against Maduro.

The US continued to increase sanctions on Venezuela following the failed coup and the country is essentially under an economic embargo. The Journal report said that the license for Chevron would put the company under a framework of sanctions similar to the ones that went into effect in 2019.

US sanctions on Venezuela have had a devastating impact on the civilian population, but the Biden administration’s steps to ease sanctions are likely an effort to keep global oil prices down. The move comes as the US and its allies are planning to implement a price cap on Russian oil that could backfire and cause Russia to significantly cut production.

Author: Dave DeCamp

Dave DeCamp is the news editor of Antiwar.com, follow him on Twitter @decampdave.