United States Orders Chevron to Cease Operations in Venezuela Within a Month

The U.S. has ordered Chevron to stop operations in Venezuela within a month, affecting the Maduro government, which relies heavily on oil revenue. This change reflects a significant shift in Trump’s Venezuela policy, moving from engagement back to pressure amid concerns over democratic processes in the country. The loss of Chevron’s production could trigger economic turmoil for Venezuela.

The United States mandated that Chevron, the energy giant, cease its operations in Venezuela within a month, severely impacting the beleaguered Venezuelan government in Caracas. Chevron is responsible for producing and exporting approximately 250,000 barrels of crude oil per day, which represents a critical source of revenue for President Nicolás Maduro’s administration.

On Tuesday, a unit of the Treasury Department ordered Chevron to halt its operations, a decision that industry insiders consider to be an unrealistic timeframe. This directive marks a notable shift in former President Donald Trump’s approach to Venezuela, a country that has long been an adversary of the United States.

During Trump’s initial term, he implemented a policy of “maximum pressure” against Maduro, utilizing sanctions and restricting American oil companies’ activities. However, upon returning to office, Trump appeared to revisit engagement with the Venezuelan president, endorsing a deal for the release of detained U.S. citizens in exchange for Venezuela accepting deportees.

This diplomatic overture, however, faced significant backlash from Florida Republicans advocating for democracy promotion in Venezuela, a nation they argue is undermined by fraudulent elections. In response to a challenging budget vote and the lack of progress in Venezuelan elections, Trump shifted his stance last month, declaring that Venezuela had not fulfilled its commitments.

In summary, the U.S. government’s requirement for Chevron to terminate its Venezuelan operations within 30 days threatens to exacerbate Venezuela’s economic instability. The expected reduction in oil exports could deepen the country’s recession and heighten the humanitarian crisis. As the political climate shifts again, stakeholders must consider the broader impacts of such policies on both Venezuelan citizens and international oil markets.

Original Source: www.rnz.co.nz