The White House has announced a plan to “selectively” lift long-standing sanctions on Venezuelan crude oil, allowing for the sale of 30 million to 50 million barrels in global markets.
However, the United States intends to maintain indefinite control over the resulting revenue – estimated at approximately $2.8 billion – to ensure leverage over the Venezuelan government.
Energy Secretary Chris Wright and Secretary of State Marco Rubio stated that the funds will be held in US-controlled accounts and used to stabilize the Venezuelan economy and benefit its people, rather than the current regime.
While President Trump characterized the move as Venezuela “turning over” the oil to be sold at market prices, the Venezuelan state oil company, PDVSA, indicated that negotiations regarding the framework of these sales are still ongoing.
The plan has sparked significant domestic and international debate; Democratic Senator Chris Murphy criticized the move as “insane” and a seizure of resources, while China’s foreign ministry condemned the plan.
Although the increased supply has caused a slight dip in global oil prices, analysts suggest that a significant expansion of Venezuela’s production would require years of massive investment.
