Aftermath of Maduro capture: US official reveals when oil sanctions in Venezuela could be lifted; Discussions with the IMF and the World Bank revealed – The Times of India

US Treasury Secretary Scott Bessent hinted at a possible easing of sanctions on Venezuela’s oil exports in the coming week, following the arrest of Venezuelan President Nicolas Maduro by US forces. The US Treasury Department will also hold talks with the heads of the International Monetary Fund and the World Bank on the latter’s renewed cooperation with Venezuela, aiming to release nearly $5 billion in Venezuelan funds stashed in foreign banks.In a Friday interview with Reuters at a Winnebago Industries factory, Bessent explained the Treasury Department’s focus on helping Venezuela access its oil revenues. “We are removing sanctions for the oil that will be sold,” he said, adding that they are working on ways to return proceeds from oil sales to Venezuela for government operations and public benefit. Explaining the Treasury Department’s review of sanctions, he said: “How can we help that country return to Venezuela, to run the government, run the security services and get it to the Venezuelan people?”

President Donald Trump has already taken action, signing an executive order protecting Venezuelan oil revenues in U.S. Treasury accounts from courts and creditors and securing the funds for Venezuela’s future “peace, prosperity and stability.”The Treasury Department’s plans include converting IMF Special Drawing Rights, worth about $4.9 billion, into dollars for reconstruction efforts. This mirrors a similar strategy used last year with Argentina, where the Treasury Department supported a $20 billion swap line to help stabilize their economy.The development marks a significant shift in US-Venezuela relations. The IMF has had no contact with Venezuela for more than twenty years. The last formal assessment dates back to 2004. Venezuela’s last interaction with the World Bank was in 2007, when then-leader Hugo Chavez declared independence from Washington’s financing.Bessent expects smaller private companies to quickly return to the Venezuelan oil sector, despite hesitations from some major oil companies. “I think this will be the typical progression where private companies can move quickly and come in very quickly,” he said. He also noted that Chevron, which has maintained a presence in Venezuela, will likely increase its stakes.The Treasury Secretary also suggested a role for the U.S. Export-Import Bank in supporting the financing of Venezuela’s oil sector, echoing previous statements by U.S. Energy Secretary Chris Wright.