President Trump has revoked Chevron’s permit to operate in Venezuela, critically affecting the nation’s unstable economy led by Maduro. This decision reverses concessions from Biden’s administration and is anticipated to have damaging macroeconomic effects, particularly on inflation and growth. Venezuelan officials argue it may worsen migration issues. Experts predict significant losses for Venezuela due to Chevron’s potential withdrawal.
In a significant move, President Donald Trump announced the revocation of Chevron’s permission to operate in Venezuela, severely impacting the country’s struggling economy under the leadership of Nicolás Maduro. This decision aligns with Trump’s criticism of Maduro for failing to fulfill commitments made to a U.S. envoy regarding the repatriation of Venezuelan deportees. The action reverses a concession made by former President Joe Biden, who permitted Chevron’s reentry into Venezuela in 2022, primarily in exchange for the liberation of detained Americans and assurances for fair elections.
Since Biden’s administration, sanctions against Maduro were gradually reimposed as the regime began sidelining opposition groups, but concessions to Chevron were maintained to avoid disruptions in U.S. oil prices prior to elections. Trump expressed his commitment to reversing Biden’s concessions via a post on his Truth Social platform, indicating that the requisite electoral conditions had not been met by the Maduro administration, which was recently accused of election fraud.
Chevron, the only U.S. oil company operating in Venezuela, had previously halted its production in the country due to sanctions during Trump’s first term. Following its return, Chevron helped revitalize an oil sector that had severely deteriorated, contributing about 240,000 barrels per day, or nearly a quarter of Venezuela’s production. The Venezuelan Vice President, Delcy Rodríguez, criticized the decision, asserting it would adversely affect both the Venezuelan populace and the U.S. economy, while raising concerns about the U.S. investment framework.
Rodriguez emphasized that such detrimental policies have historically contributed to increased migration from Venezuela. In its early days, the Trump administration indicated intentions to deport around 600,000 Venezuelans residing in the U.S. In response to U.S. demands, Venezuela previously repatriated migrants, but more than seven million Venezuelans have fled due to the collapsing economy and societal unrest.
Chevron has acknowledged Trump’s decision and is currently assessing its implications for its operations in Venezuela, affirming compliance with U.S. law and sanctions. Economists predict a substantial macroeconomic impact from the revocation, particularly regarding inflation and national growth. Experts estimate that the absence of Chevron could lead to losses between $150 million and $200 million monthly for Venezuela.
Despite the revocation, some analysts believe Chevron may continue to operate through September, allowing for potential diplomatic negotiations between the Maduro and Trump administrations as both parties might seek indications of mutual benefits.
In conclusion, President Trump’s termination of Chevron’s operations in Venezuela poses a critical challenge for the country’s already fragile economy led by Nicolás Maduro. The decision is anticipated to exacerbate economic difficulties, prompting discussions about potential diplomatic negotiations between the involved parties. The implications of this considerable shift may have lasting effects on both Venezuela’s economy and the burgeoning migration crisis.
Original Source: www.rfi.fr
