The US is considering lifting more sanctions on Venezuela to boost oil sales

The US is considering easing additional sanctions on Venezuela to boost oil sales, possibly as soon as next week. This move could have substantial consequences for the global oil market and Venezuela’s economy.

Sanctions could be lifted next week

Minister of Finance Scott Bessant announced to Reuters that additional US sanctions on Venezuela could be lifted as early as next week to ease oil sales. Bessent plans to meet with the heads of the International Monetary Fund and the World Bank to discuss their renewed cooperation with Venezuela.

Venezuela’s IMF Special Drawing Rights

Bessent said nearly $5 billion in the IMF’s frozen Special Drawing Rights could be used to support the country’s economic recovery. He said during a visit to a Winnebago Industries facility: “We are in the process of repealing sanctions on the oil that is going to be sold.” The Treasury Department is exploring ways to repatriate proceeds from oil sales back to Venezuela.

When asked about the timeline for lifting more sanctions, Bessent indicated this could happen as early as next week, without specifying which sanctions. This step is part of the Donald Trump government efforts to stabilize Venezuela following the capture of the Venezuelan leader Nicholas Maduro.

Trump signs executive order

Trump signed an executive order on Friday to protect Venezuelan oil revenues in US Treasury accounts, aiming to support Venezuela in achieving “peace, prosperity and stability.” Bessent also noted that smaller, private companies are expected to quickly re-enter the Venezuelan oil sector.

The possible lifting of sanctions comes after the US-backed arrest of former Venezuelan leader Nicolás Maduro, which has reignited debate over Venezuela’s role in the global oil market.

Trump has signaled his intention to oversee Venezuela’s recovery, emphasizing a “highly profitable” reconstruction for the oil-rich nation. This includes pushing US oil giants to invest $100 billion in Venezuela’s petroleum sector.

However, the Senate has taken steps to limit Trump’s military actions in Venezuela, reflecting the complex geopolitical landscape surrounding these developments.

Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.

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