Venezuela stops oil imports after US refuses to pay
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Loading... - James Hale
- 06 Feb 2023
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In a surprising development last year, US started importing Venezuelan oil. However, the transaction between both the nations was based on the terms dictated by US.
One of the terms was its refusal to pay for the oil with money. Not only this, it even instructed European firms to do the same. US assumed that it could bully Venezuela however it wants. Well, its plan has backfired.
Now, Venezuelan President Nicholas Maduro has stopped all oil imports to US. This can potentially jeopardise US’ brand oil plan for Europe which it hoped would damage Russia.
The US negotiated an oil deal with Venezuela on the condition that it would table talks with the nation’s opposition. Following this, the Nicolas Maduro administration and the opposition signed an accord to establish an UN-administered fund to offer humanitarian relief to the Venezuelan people.
The negotiations were aimed at finding a shared solution to the crisis affecting the South American nation. Biden administration claimed that that it had removed oil sanctions on Venezuela. The move was shown as Venezuelan re-entrance to world oil markets.The second-largest American oil company, Chevron Corp., was permitted to increase production in Venezuela. Chevron would then export crude oil from that South American nation to the US.
In short, big claims were made about the deal. But nothing of the sort materialised. Because what was not told is that the US wanted the oil for free.
It limited any monetary transfers to Venezuela. On the condition that no money be transferred to the nation, Washington even approved European businesses to resume buying Venezuelan crude oil.
Further, the sanction relaxation was meant to extend more privileges to the last significant American oil business still operating in Venezuela under U.S. embargo. US’ recently approved Trinidad and Tobago to explore natural gas in Dragon natural gas field in Venezuela. But, it forbade the transfer of money. Read More…
