The U.S. has ordered Chevron to halt its operations in Venezuela within 30 days, impacting the cash-strapped Maduro government. This signals a shift in Trump’s approach from engagement to increased pressure. Experts warn of severe economic repercussions, including potential recession and rising emigration, as Venezuelan foreign reserves dwindle. Vice President Delcy Rodriguez condemned the U.S. actions, calling it a self-inflicted blow to the people.
On Tuesday, the United States granted Chevron a mere month to cease operations in Venezuela, significantly impacting the struggling administration in Caracas. Currently, Chevron contributes to nearly a quarter of Venezuela’s crude oil production, which is crucial for the revenue of President Nicolas Maduro’s government. The U.S. Treasury demanded that Chevron halt its pumping activities within 30 days, a timeline experts deem impractical.
This directive represents a notable shift in former President Donald Trump’s approach towards Venezuela, a nation long at odds with the United States. During his prior administration, Trump adopted a stance of strict sanctions and maximum pressure against Maduro, limiting U.S. energy companies’ involvement in the region. However, Trump’s recent return to the presidency saw him initially favoring engagement, including facilitating the release of American citizens in a compromise with Caracas.
Recent political pressure, particularly from Republican factions in Florida advocating for a pro-democracy stance, compelled Trump to reconsider. He swiftly changed course, asserting Venezuela had not held the anticipated fair elections and was failing to comply with prior agreements. Experts warn that the cessation of Chevron’s operations could induce a recession in Venezuela, exacerbating the existing humanitarian crisis and increasing emigration rates.
The potential loss of $150 to $200 million monthly in foreign reserves could severely impact Maduro’s government. Venezuelan Vice President Delcy Rodriguez criticized the United States, claiming, “The new US government is trying to hurt the Venezuelan people. It’s a self-inflicted blow that is going to increase fuel prices.” Market reactions have been mixed; while oil markets appeared relatively unaffected following an OPEC production increase, Chevron’s shares dipped by approximately 2.8% in the preceding week.
Once capable of producing 3.5 million barrels daily, Venezuela’s output has plummeted to slightly over one million, primarily due to the combined effects of low oil prices and severe U.S. sanctions. Meanwhile, European companies such as Eni, Repsol, and Shell, operating in Venezuela, remain excluded from this directive, suggesting a shift in targeted policy measures.
In summary, the United States’ recent decision to compel Chevron to suspend its Venezuelan operations marks a significant realignment in Trump’s Venezuela policy. This move is expected to exacerbate Venezuela’s economic distress, potentially leading to increased emigration and further strain on the Maduro regime. Critics assert that such actions might worsen conditions for the Venezuelan populace, illustrating the complexity of international relations and economic sanctions.
Original Source: www.france24.com
