US to loosen sanctions on Venezuelan oil — Reuters

Citing four sources, the agency notes that following the arrest of Venezuelan President Nicolás Maduro, Washington intends to ease sanctions against Venezuela's energy sector.

This is necessary for the conclusion of a $2 billion oil supply agreement between Caracas and Washington and a $100 billion plan to restore the country's oil industry.

Privileges for US companies

Some US oil companies have applied in recent weeks for individual licenses to increase production or exports from Venezuela.

Two sources said that a large number of individual requests to the US government had delayed plans to increase exports and quickly attract investment to the country.

According to one source, the general license being prepared may provide privileges for US companies compared to other foreign participants. This is part of US President Donald Trump's policy of putting American companies first.

Sources said that a radical reform of Venezuela's main oil legislation was approved in a preliminary vote last week. It will promote investment in the oil and gas industry, increase production and exports, and is expected to be finally approved by the National Assembly next week.

Sanctions against Venezuela

The US imposed sanctions in 2019 after Maduro's first re-election, which Washington did not recognize. Over the course of seven years, they have changed depending on the US administration.

During former US President Joe Biden's tenure, a broad license exempted many companies from sanctions, allowing them to export Venezuelan oil. This contributed to an increase in oil production and exports until the first quarter of last year, when Donald Trump was re-elected for a second term.

The Trump administration revoked the license to put pressure on Maduro and ordered companies to cease operations. In December, they began blocking all ships subject to sanctions from entering or leaving the country, which led to a reduction in oil exports from Venezuela to 500,000 barrels per day that month from 952,000 barrels per day in November.

On January 3, the US carried out a large-scale special operation in Venezuela, launching air strikes on the capital Caracas. Its goal was to arrest Venezuela's Nicolás Maduro, who was taken to the US along with his wife, Cilia Flores.

Later, Trump said that the US was taking control of Venezuela's oil industry. According to him, America will receive 30 to 50 million barrels of high-quality oil from Venezuela's interim government.