Trump Revokes Chevron’s Operating Permit in Venezuela, Impacting Economy

President Trump has rescinded Chevron’s permit to operate in Venezuela, marking a significant economic setback for the country led by Nicolas Maduro. The decision follows Trump’s accusations that Maduro failed to uphold commitments regarding the repatriation of Venezuelans and fair elections. Economic analysts forecast severe implications for Venezuela’s economy due to the loss of Chevron’s contributions, as the country struggles with widespread migration and instability.

United States President Donald Trump has revoked Chevron’s permit to operate in Venezuela, striking a significant blow to the country’s economy, which is headed by President Nicolas Maduro. Trump’s decision follows accusations against Maduro for failing to meet commitments regarding the repatriation of deported Venezuelans, as outlined in a previous engagement with a U.S. envoy. This action contrasts sharply with former President Joe Biden’s prior concessions aimed at enabling Chevron’s operations in exchange for the release of detained Americans and promises for fair elections in Venezuela.

Biden initially eased sanctions against Venezuela to allow Chevron’s return; however, after recognizing Maduro’s failure to uphold political agreements, most sanctions were reinstated. Trump declared on his Truth Social platform, “We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolas Maduro,” citing unmet election conditions and issues with the repatriation of Venezuelan criminals as primary reasons behind his decision.

As the sole U.S. oil enterprise in Venezuela, Chevron had previously suspended operations in 2018 due to sanctions imposed by Trump during his first term. With its re-entry into the market, Chevron played a vital role in reviving the country’s oil sector, which has been in decline since the 1990s, contributing approximately 240,000 barrels per day, nearly a quarter of Venezuela’s total output.

Venezuelan Vice President Delcy Rodriguez condemned Trump’s choice as “damaging and inexplicable,” cautioning about its repercussions on migration—a matter of priority for Trump. Rodriguez noted that such actions ultimately harm both Venezuelans and the United States, jeopardizing the nation’s international investment integrity. She further emphasized that decisions like these contributed to the mass migration crisis from 2017 to 2021.

During Trump’s administration, plans were announced to deport around 600,000 Venezuelans residing in the U.S. who had previously been protected under Biden’s policies. Trump’s envoy Ric Grenell urged Maduro to accept the return of Venezuelan citizens, resulting in Venezuela dispatching planes to repatriate almost 200 undocumented migrants. Since Venezuela’s economic collapse, over seven million citizens have fled the country, primarily to other countries within Latin America.

Chevron remains cognizant of the implications of Trump’s decision, stating that it continues to operate in Venezuela in accordance with U.S. laws and sanctions. Economic experts predict significant macroeconomic consequences due to Trump’s revocation, notably impacts on inflation, currency exchange rates, and overall national economic growth. According to Leonardo Vera, an academic at the Central University of Venezuela, the loss of Chevron’s operations could result in a monthly revenue shortfall of $150 to $200 million, heightening the risk of recession. Nevertheless, there might be a brief window until September for potential diplomatic negotiations.

The revocation of Chevron’s permit by President Trump represents a strategic shift in U.S. policy towards Venezuela, directly impacting the country’s weakened economy. Despite prior efforts to negotiate with the Maduro regime, the lack of adherence to electoral guarantees and immigration agreements has led to renewed sanctions. The potential economic fallout could exacerbate Venezuela’s ongoing crisis, with expert predictions indicating severe repercussions for the nation’s financial stability. Furthermore, ongoing tensions surrounding migration and international diplomatic relations remain critical to understanding the broader implications of this decision.

Original Source: www.rfi.fr