President Trump revokes Chevron’s permit in Venezuela, impacting its economy. This decision stems from accusations against Maduro for failing commitments regarding deported citizens and election integrity. Chevron’s exit could result in substantial financial loss for Venezuela while generating migration concerns. Analysts predict significant macroeconomic consequences from the revocation, and the possibility of negotiations may linger as a response.
In a significant move, President Donald Trump has revoked Chevron’s permit to operate in Venezuela, which will severely impact the nation’s already struggling economy under President Nicolas Maduro. The revocation comes as Trump accuses Maduro of failing to uphold commitments regarding the return of Venezuelan deportees and of not conducting fair elections, leading to his dismissal of concessions made by the Biden administration.
Despite easing sanctions in 2022, the Biden administration reimposed many measures after observing Maduro’s actions regarding opposition to his regime. Trump framed his reversal of concessions as necessary, citing unmet election conditions and a failure in the transportation of violent criminals back to Venezuela as major concerns.
Chevron, the only U.S. oil company active in Venezuela, plays a critical role in the country’s oil production, producing approximately 240,000 barrels per day. Trump’s decision is predicted to have a substantial macroeconomic impact, potentially resulting in a decline of 150-200 million dollars per month, exacerbating the current recession.
In response, Venezuelan Vice President Delcy Rodriguez criticized the decision as “damaging and inexplicable,” suggesting that it would ultimately harm U.S. interests and exacerbate migration issues. Chevron is currently deliberating the ramifications of the decision, while economic analysts express concerns regarding the potential economic fallout from the lack of investment.
Experts believe Chevron may continue its operations until the anticipated diplomatic negotiations between the two administrations are realized, allowing for potential concessions. The intricate dynamics of U.S.-Venezuelan relations will play a significant role in the overall outcome of this situation.
In summary, President Trump’s cancellation of Chevron’s operations in Venezuela marks a crucial diplomatic shift affecting both countries. The decision stems from accusations regarding failed commitments by Maduro and is expected to significantly impact Venezuela’s economy. With the potential for ongoing negotiations, the final implications of this revocation remain to be seen, especially considering the deep connections between oil revenues and national stability.
Original Source: www.rfi.fr
