"The Treasury issued a broad authorization allowing Petróleos de Venezuela S.A, or PDVSA, to directly sell Venezuelan oil to U.S. companies and on global markets, a massive shift after Washington for years had largely blocked dealings with Venezuela's government and its oil sector."
"The U.S. action is designed to incentivize new investment in Venezuela's energy sector and is intended to benefit both the U.S and Venezuela, while increasing the global oil supply, a Treasury official told The Associated Press."
"Payments cannot go directly to sanctioned Venezuelan entities such as PDVSA, but must be sent instead to a special U.S.-controlled account. In other words, the U.S. will allow the oil trade but will control the cash flow."
The Treasury Department issued a broad authorization allowing PDVSA to sell Venezuelan oil to U.S. companies and global markets, marking a significant policy reversal after years of sanctions restrictions. This move responds to pressure from rising oil prices caused by Iran halting Strait of Hormuz traffic during ongoing U.S.-Israel military operations. The authorization aims to incentivize investment in Venezuela's energy sector and increase global oil supply. Following Nicolás Maduro's ouster in January, President Trump stated the U.S. would effectively manage Venezuela's oil sales. The license provides targeted sanctions relief for companies existing before January 29, 2025, though payments must route through U.S.-controlled accounts rather than directly to sanctioned Venezuelan entities. Transactions involving Russia, Iran, North Korea, Cuba, and certain Chinese entities remain prohibited.
Read at Fortune
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