The U.S. is contemplating easing additional sanctions on Venezuela to enhance its oil sales, potentially as early as next week. This move could have substantial implications for the global oil market and Venezuela’s economy.
Sanctions May Be Lifted Next Week
Treasury Secretary Scott Bessent disclosed to Reuters that additional U.S. sanctions on Venezuela might be lifted as early as next week to facilitate oil sales. Bessent plans to meet with the heads of the International Monetary Fund and World Bank to discuss their re-engagement with Venezuela.
Venezuela’s IMF Special Drawing Rights
Bessent mentioned that nearly $5 billion of Venezuela’s frozen IMF Special Drawing Rights could be used to aid the country’s economic recovery. He stated, “We’re de-sanctioning the oil that’s going to be sold,” during a visit to a Winnebago Industries facility. The Treasury is exploring ways to repatriate proceeds from oil sales back to Venezuela.
When asked about the timeline for lifting more sanctions, Bessent indicated it could happen as soon as next week, without specifying which sanctions. This move is part of the Donald Trump administration’s efforts to stabilize Venezuela following the capture of Venezuelan leader Nicolas Maduro.
Trump Signs Executive Order
Trump signed an executive order on Friday to protect Venezuelan oil revenue held in U.S. Treasury accounts, aiming to support Venezuela in achieving “peace, prosperity and stability.” Bessent also noted that smaller, privately held companies are expected to quickly re-enter Venezuela’s oil sector.
The potential lifting of sanctions comes after the U.S.-backed capture of former Venezuelan leader Nicolás Maduro, which has reignited discussions about Venezuela’s role in the global oil market.
Trump has expressed intentions to oversee Venezuela’s recovery, emphasizing a “very profitable” rebuild for the oil-rich nation. This includes urging U.S. oil giants to invest $100 billion into Venezuela’s petroleum sector.
The Senate, however, has moved to limit Trump’s military actions in Venezuela, reflecting the complex geopolitical landscape surrounding these developments.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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