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Former US President Donald Trump says he will cancel a licence that allowed Venezuela to sell some of its oil to the US, despite existing sanctions.
This is a big setback for the Venezuelan government. The licence let US oil company Chevron work with Venezuela’s state-run oil company, providing much-needed income in US dollars.
Trump said he was revoking the licence because President Nicolás Maduro’s government did not meet “electoral conditions” and was too slow in taking back deported Venezuelan criminals from the US.
Venezuela called the decision “damaging” and warned it could lead to more Venezuelans migrating to the US.
A country must approve before someone can be deported back there. Venezuela had not allowed this before.
Human rights groups have opposed deportations to Venezuela. They say returnees could face persecution, especially if they were in the military and left the country.
The Trump administration has considered sending Venezuelan immigrants to Guantanamo Bay. This military base is known for holding and torturing suspected fighters in the “war on terror.”
The government claims the Venezuelans sent there are gang members and dangerous criminals. However, many only have immigration-related charges and no serious criminal record.
Trump made the announcement on Truth Social, saying he was reversing the “concessions” Joe Biden had given Maduro in an oil agreement from November 26, 2022. He did not specify which concessions, but the only licence granted that day was the one that allowed Chevron to continue some oil production in Venezuela.
The licence let Chevron operate joint ventures but prevented it from paying taxes or royalties to Venezuela’s government.
Chevron said it follows all laws and regulations, including US sanctions. Its CEO, Mike Wirth, warned that if Chevron leaves Venezuela, China and Russia could expand their influence there, and the country’s economy might worsen, leading to more migration to the US.
Venezuelan opposition groups have supported revoking the licence, arguing it helps Maduro’s government stay in power.
The Biden administration issued the licence in 2022 to encourage Maduro to hold free and fair elections. It remained in place even after Venezuela’s election council declared Maduro the winner of the 2024 presidential election. The opposition and some countries, including the US, rejected the result and recognised Maduro’s rival instead.
Trump’s decision came just weeks after his envoy, Richard Grenell, met Maduro in Caracas. Grenell’s visit led to the release of six US citizens held in Venezuela and an agreement for Venezuela to take back deported nationals.
In his post, Trump said Venezuela had not returned criminals fast enough and ordered the “ineffective” Biden agreement to be cancelled by March 1.
Venezuelan Vice-President Delcy Rodríguez said past US sanctions caused more Venezuelans to migrate and warned this might happen again.
Trump has made stopping illegal immigration a key priority. Following his announcement, oil prices rose by more than 1% on Thursday.
Sources: BBC, AP, CNN
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