The Trump administration plans to pressure more companies to end operations in Venezuela, tightening sanctions on the Maduro regime. Companies, including Chevron, have been given short timeframes to cease activities, which could further harm Venezuela’s economy. Conflicting views within the administration and diplomatic negotiations are influencing the situation.
The Trump administration is set to compel more companies to cease operations in Venezuela, intensifying pressure on President Nicolas Maduro following the order for Chevron Corp. to stop. Companies such as Etablissements Maurel & Prom SA and a Florida asphalt company have reportedly been given 30 days to wind down their operations once the US revokes their waivers that allow them to operate under existing sanctions.
Ending these operations could severely impact Venezuela’s struggling economy, which is heavily reliant on oil. Chevron is a key player, and its exit, along with other smaller companies, could worsen the nation’s economic situation, particularly as the state oil company faces significant challenges. The Treasury Department mandated Chevron to cease operations by April 3, a much shorter timeframe than typically allowed.
The Trump administration has varied opinions among its advisers on how to handle the Venezuela situation, suggesting that the president may reconsider the move to allow oil companies to maintain their presence in the country. Other companies, including Spain’s Repsol SA and Italy’s Eni SpA, are similarly anxiously awaiting news on their operational waivers.
According to estimates, joint operations between Chevron and Petroleos de Venezuela SA account for a significant portion of the Maduro regime’s revenue, with potential economic contraction reaching 7.5% this year without Chevron’s contributions. Recent diplomatic interactions, including a visit from adviser Rick Grenell, have contributed to negotiations, leading to prisoner releases and the resumption of deportations of Venezuelan migrants from the US.
Maduro downplayed the potential consequences of Chevron’s exit, claiming that oil output will remain stable, while experts warn of severe contractions in revenue and economic stability for Venezuela if these companies are forced out.
The impending actions by the Trump administration to revoke waivers for companies operating in Venezuela could significantly disrupt the country’s economy, particularly in the oil sector. Chevron’s exit alone may lead to substantial revenue losses for the Maduro regime, and the mixed signals from the administration could shift future decisions regarding foreign company operations. The outcomes of these developments remain to be seen amidst ongoing negotiations and Maduro’s responses.
Original Source: www.livemint.com
