The U.S. has ordered Chevron to stop operations in Venezuela within 30 days, marking a shift in former President Trump’s policy toward the country. This will eliminate crucial revenue for Nicolas Maduro’s government, with experts warning it could lead to significant economic repercussions and increased emigration. The action, criticized by Venezuelan officials, comes amidst a backdrop of complex political pressures and changing U.S. strategies.
The United States government has mandated that Chevron cease its operations in Venezuela within 30 days, inflicting significant challenges on the financially-strained authorities in Caracas. Chevron is responsible for nearly 250,000 barrels of crude oil production daily, which is essential for the revenue stream for President Nicolas Maduro’s administration. However, the Treasury Department’s ultimatum is deemed unfeasible by industry experts due to its limited timeframe.
This policy shift marks a notable change in former President Donald Trump’s approach to Venezuela, a country historically at odds with the United States. During his first administration, Trump implemented strict sanctions and pursued a strategy of maximum pressure against the Maduro regime. Nonetheless, upon his return to office, Trump endeavored to engage with Maduro, facilitating a deal that involved the release of American citizens in exchange for the acceptance of deportees by Venezuela.
Trump’s initial conciliatory approach faced backlash from Republican figures in Florida, leading to a quick reversal of his position. He recently declared that Venezuela had not upheld promises of conducting fair elections, resulting in a two-pronged strategy of returning to pressure tactics. Economists warn that Chevron’s exit may push Venezuela toward a recession, potentially increasing emigration from the nation as the regime could lose an estimated $150 to $200 million monthly in foreign reserves.
Vice President Delcy Rodriguez criticized the U.S. for its actions, stating, “The new US government is trying to hurt the Venezuelan people.” The impact on oil markets was muted as OPEC’s recent production increase overshadowed the news, although Chevron’s stock experienced a 2.8 percent decline over the past week. Venezuela’s oil output has dramatically decreased from 3.5 million barrels daily in previous years to just over one million barrels now, with implications for its already faltering economy.
The Trump administration’s directive to Chevron to halt its operations in Venezuela represents a shift back to pressure tactics on the Maduro regime. This decision threatens to worsen the economic plight of Venezuela, already struggling with immense financial challenges. The response to this ultimatum indicates both political and economic ramifications, highlighting the complex relationship between the U.S. and Venezuela. Additionally, the broader implications for both the oil market and the humanitarian situation in Venezuela warrant careful monitoring going forward.
Original Source: www.france24.com
