Trump has revoked Chevron’s permit to operate in Venezuela, impacting Maduro’s regime and its economic stability. The move reflects dissatisfaction with Maduro’s actions, particularly concerning repatriation of deported Venezuelans and electoral integrity. Economic analysts anticipate significant repercussions for Venezuela and its oil sector due to this decision.
In a significant development, President Donald Trump announced the revocation of Chevron’s permit to operate in Venezuela, marking a critical setback for President Nicolás Maduro’s administration, which is struggling economically. Trump accused Maduro of not fulfilling commitments regarding the return of deported Venezuelans following a visit from a U.S. envoy, which some viewed as a signal of a potential shift toward pragmatic engagement with the regime.
The Biden administration had loosened sanctions on Chevron in 2022, allowing it to operate in exchange for the release of American detainees and a commitment from Maduro to ensure fair elections. However, following signs that Maduro was marginalizing opposition leaders, Biden reinstated many sanctions while keeping the concession for Chevron to avoid spikes in U.S. oil prices ahead of elections.
“We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolas Maduro,” Trump stated on his Truth Social platform. He further criticized Maduro for his failure to meet election standards and for not repatriating violent criminals as promised during negotiations. Maduro was sworn in for a third term amid allegations of electoral fraud.
Chevron, the sole U.S. oil operator in Venezuela, had halted its production in 2018 due to sanctions. Upon its return, it played a pivotal role in reviving the collapsing oil sector, contributing approximately 240,000 barrels a day, or around 25% of Venezuela’s total output.
Venezuelan Vice President Delcy Rodriguez condemned the revocation as “damaging and inexplicable” and warned about its repercussions on migration—an important issue for Trump. She argued that the decision adversely affects both Venezuelans and the United States while jeopardizing the legal security of U.S. international investments, linking such measures to increased migration incidents from 2017 to 2021.
The Trump administration indicated it was prepared to deport around 600,000 Venezuelans who had benefited from protections under Biden’s policies. Ric Grenell, Trump’s envoy, visited Maduro to push for the repatriation of Venezuelans. As a result, Venezuela facilitated the return of nearly 200 undocumented migrants.
Chevron’s spokesperson acknowledged the decision and stated that the company would assess the implications of the revocation. Economists foresee a significant macroeconomic impact resulting from this decision, particularly on the exchange rate, inflation, and national growth. Prominent economic figures predict that Chevron’s exit could lead to a loss of $150 to $200 million per month for Venezuela, exacerbating recession fears.
However, it is believed that Chevron might continue operations until September, allowing room for potential diplomatic negotiations between the Trump and Maduro administrations. There are expectations that both sides could engage in talks to secure mutual benefits before any immediate operational changes take effect.
In summary, Trump’s withdrawal of Chevron’s operating permit signifies a major setback for Venezuela’s already struggling economy. It raises questions about the diplomatic ties between the U.S. and Venezuela. While this move is framed as a response to Maduro’s unfulfilled commitments and election controversies, it also poses substantial risks to both U.S. interests and Venezuela’s economic health.
Original Source: www.ndtv.com
