Trump Revokes Chevron’s Permit, Impacting Venezuela’s Economy

US President Donald Trump has revoked Chevron’s permit to operate in Venezuela, intensifying pressure on Nicolás Maduro’s regime. This decision stems from accusations that Maduro failed to comply with commitments regarding deported Venezuelans. Although previous easing of sanctions under Joe Biden aimed to stabilize oil production, the reinstated restrictions have significant implications for Venezuela’s economy and ongoing migration challenges.

In a significant move, US President Donald Trump announced the revocation of Chevron’s operating permit in Venezuela, tightening restrictions on the economically challenged regime led by Nicolás Maduro. This decision comes amidst accusations from Trump that Maduro had not upheld his commitments regarding the return of deported Venezuelans. Initially, the US administration under President Joe Biden had eased sanctions on Chevron with expectations of democratic reforms in Venezuela, which were ultimately unmet.

Following a visit from a US envoy, which spurred hopes of practical engagement, Biden’s administration allowed Chevron to resume operations in Venezuela to facilitate a stable oil supply. However, after observing Maduro sideline opposition and the continued lack of adherence to electoral promises, Biden reinstated most sanctions yet maintained some concessions to prevent inflating domestic oil prices ahead of upcoming elections. Trump characterized these concessions as misguided, stating, “We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolas Maduro”.

Chevron has played a critical role in revitalizing Venezuela’s oil sector, producing approximately 240,000 barrels daily. Venezuelan Vice President Delcy Rodriguez criticized Trump’s decision as harmful, indicating it would adversely affect migration issues which are central to Trump’s political priorities. Rodriguez commented that such actions harm both the Venezuelan populace and the stability of US investments.

The retraction of Chevron’s permit is expected to induce a significant macroeconomic downturn in Venezuela, potentially exacerbating inflation and impacting growth rates. Experts predict that the country may lose $150 million to $200 million monthly if Chevron ceases operations. Despite the ban, operations may continue until a diplomatic resolution is sought. Economic analysts believe negotiations could unfold in the interim, should both governments see mutual benefits.

President Trump’s revocation of Chevron’s permit represents a strategic shift in US policy toward Venezuela, emphasizing pressure on the Maduro regime amidst ongoing economic challenges. This action, influenced by unmet commitments regarding deportation and electoral integrity, poses severe risks for Venezuela’s economic stability and could escalate migration issues. The repercussions of this decision are being closely monitored by both economic experts and US officials, as the effects on the Venezuelan economy and US investments remain uncertain.

Original Source: www.rfi.fr