Trinidad Gets US Waiver to Pay Cash for Venezuelan Natural Gas

Trinidad and Tobago obtained an amended license from the US Treasury on Tuesday that will allow them to pay Venezuela in cash for the natural gas it will import from a project with the South American nation, Oil Minister Stuart Young said, cited by Bloomberg.

• The amendment allows Trinidad to pay for Venezuelan gas from its Dragon field project in dollars and other currencies instead of humanitarian aid, as a previous US Treasury license allowed.
• The step is a major departure from US policy toward the Nicolas Maduro government, which limited payments by Venezuela’s partners to swaps or humanitarian aid.
• Negotiations were halted in 2019 due to US sanctions, but the US government issued a waiver in January allowing Trinidad to resume negotiations.
• Venezuela’s Maduro government agreed to electoral guarantees for its political opposition in the 2024 presidential election on Tuesday – opening the door for possible US sanctions relief for its oil.