Trump Revokes Chevron’s Venezuela Permit, Impacting Economic Stability
US President Donald Trump has revoked Chevron’s operating permissions in Venezuela, marking a significant economic blow to Nicolás Maduro’s government. The move was justified by Trump’s claims about Maduro’s failure to keep commitments regarding deportations. This decision follows a trend of fluctuating sanctions under the Biden administration, with economists predicting detrimental economic impacts on Venezuela. Chevron’s continued operations, however, may still occur for a limited time as diplomatic channels remain open.
On Wednesday, US President Donald Trump announced the revocation of Chevron’s operating permits in Venezuela, significantly affecting the nation’s already troubled economy under Nicolás Maduro. This decision was framed as a direct response to Maduro’s failure to fulfill his commitments regarding the repatriation of deported Venezuelans, which were promised to a US envoy. Facing accusations of failing to engage more proactively, Trump contrasted his approach with that of former President Joe Biden, who had previously eased sanctions on Chevron to facilitate Venezuela’s oil production and obtain the release of detained Americans while ensuring the promise of fair elections.
Following Trump’s announcement, he took to his Truth Social platform, stating, “We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolas Maduro.” He emphasized that the conditions for fair elections had not materialized, and also criticized the Maduro administration for not rapidly repatriating violent criminals as agreed upon. Notably, Chevron had been the sole US oil company operating in Venezuela, reviving an oil sector that has dwindled significantly since the 1990s, producing about 240,000 barrels per day.
Venezuelan Vice President Delcy Rodríguez rebuked the Trump administration’s decision, labeling it as “damaging and inexplicable.” She cautioned that such actions would inadvertently harm the United States, its citizens, and businesses, while reiterating the historical connection between adverse decisions and migration trends from Venezuela. The Trump administration had previously indicated plans to deport around 600,000 Venezuelans protected under Biden’s administration, underscoring the hot-button issue of migration.
Chevron has acknowledged the decision and is evaluating its potential repercussions. A spokesperson affirmed that the company operates within all legal frameworks and regulations established by the US government. Economists estimate that the loss of Chevron’s revenue could precipitate significant economic challenges, including devaluation of the currency, increased inflation, and a potential recession, with estimates citing a potential loss of $150-200 million in monthly revenue for Venezuela.
Despite the looming sanctions implications, some analysts suggest that Chevron could continue operations until September, allowing room for possible negotiations to mitigate fallout. As the two administrations navigate these complexities, the urgent need for diplomatic engagement remains evident amid the backdrop of Venezuela’s critical economic situation.
The revocation of Chevron’s operating permits by President Trump represents a significant shift in US-Venezuela relations, particularly affecting Venezuela’s economy, already strained under Maduro’s leadership. This decision, coupled with Trump’s hardline stance on migration and criminal repatriation, suggests a renewed focus on sanctions as a tool of foreign policy. Experts warn of serious economic repercussions in Venezuela, stemming from the loss of Chevron’s operations, while potential diplomatic negotiations may still play a role in shaping future developments.
Original Source: www.rfi.fr
