Biden gives Chevron permission to resell Venezuelan oil

This action was not taken in response to energy prices, this is a limited license. As we have said in the past, this is about the regime taking the necessary steps to support the restoration of democracy in Venezuela,” the official said.

The official said oil supplies affected under the new license would likely have reached customers through the black market.

The decision to allow Chevron to resume shipments from the South American country comes ahead of the December 5 deadline for tougher sanctions against Russia, which could roil global oil markets. The Group of Seven and the European Union are moving to restrict Russian oil exports and impose a price cap on oil sales.

Under the expanded license issued by the Treasury Department’s Office of Foreign Assets Control, Venezuela’s state oil company, PdVSA, is prohibited from receiving profits from oil sales generated by its joint venture with Chevron. It maintains broader penalties for PdVSA.

The Treasury Department said moves by the Maduro regime in Venezuela to resume talks with the opposition are “important steps in the right direction to restore democracy in the country,” which the United States welcomes “as part of our longstanding policy to support the peaceful restoration of democracy, free and fair elections, and respect for the rights and freedoms of Venezuelans.” “.

Venezuela has some of the largest oil reserves in the world, but mismanagement of the oil sector by the government and sanctions imposed by the United States have led to a sharp decline in its exports.

senator. Bob Menendez (D-N.J.), chairman of the Senate Foreign Affairs Committee, welcomed the move but cautioned Caracas against making good on its new promises.

“If Maduro tries again to use these negotiations to buy time to consolidate his criminal dictatorship, the United States and our international partners must restore the full force of our sanctions that brought his regime to the negotiating table in the first place,” Menendez said in a statement.

Chevron, which maintained a presence in Venezuela during the sanctions imposed by the United States, said it had obtained the permit.

“We are determined to maintain a constructive presence in the country and continue to support social investment programs aimed at providing humanitarian relief,” Chevron spokesman Ray Fuhr said in a statement.