By Jarrett Renshaw
The US on Friday expanded sanctions waivers on Venezuela, easing the way for investment in the South American country’s energy and petrochemical sectors and allowing for fertiliser exports as Washington seeks to help American farmers hit by rising prices stemming from the Iran war.
The US Treasury department issued three updated general licences as part of the move. The department said the changes were intended to support the revitalisation of Venezuela’s energy industry while ensuring global commodity markets remain well-supplied, though it was not immediately clear how much fertiliser Venezuela had available to export, or how quickly it would reach the US.
“These authorisations expand permitted investment and activities in Venezuela’s energy industry and allow for the export of fertiliser directly to the US to support our great American farmers,” a Treasury official said.
The move reflects the Trump administration’s effort to cushion US consumers and farmers from rising commodity prices due to the conflict with Iran, which has boosted oil and fertiliser costs and raised concerns about broader inflation. The measures specifically support activities related to electricity generation, transmission and distribution, all seen as critical to boosting oil production after decades of underinvestment.
FERTILISER IMPORTS FROM VENEZUELA TO US
The authorisations allow US entities to purchase Venezuelan petrochemical products, including fertiliser, for import into the US, in addition to buying Venezuelan oil. They also permit companies to provide goods, services and technology to support Venezuela’s electricity and petrochemical sectors, expanding beyond previous permissions focused primarily on oil and gas.
Additionally, the measures allow firms to negotiate contingent contracts for new investments in Venezuela’s electricity and petrochemical industries, though any final agreements must receive separate authorisation from the Treasury department’s Office of Foreign Assets Control.
Transactions involving Russia, Iran, North Korea, China and Cuba remain restricted.
The actions build on a series of sanctions adjustments Washington has rolled out since the January capture and removal of President Nicolas Maduro. Earlier this month, US authorities issued a licence authorising certain transactions involving Venezuelan-origin gold, while oil sanctions were more broadly relaxed in February and January.
Venezuela’s economy has been hard-hit by sanctions, what critics call profound mismanagement and a series of corruption scandals, sometimes involving high-level officials. Economists estimate that inflation was about 400% last year.
Reuters
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