US Talks Open to Further Easing of Venezuelan Oil Sanctions

Venezuela and the US have progressed in talks that may allow an additional foreign firm to take Venezuelan oil in return for debt repayment according to five Reuters sources.

• The deal requires Venezuela’s Maduro government to resume Mexico based talks with its opposition.
• The talks between President Maduro's government and the opposition are meant to find solutions to Venezuela's long-running political and economic crisis.
• "Should Venezuela take concrete actions toward restoring democracy, leading to free and fair elections, we are prepared to provide corresponding sanctions relief," a White House spokesperson said last week. "At this time, Venezuela has not taken the necessary steps, and our sanctions remain in effect."
• “Among the companies that could get a U.S. comfort letter to take Venezuelan oil as debt repayment this time is one of state-run PDVSA's joint venture partners Maurel & Prom” the Reuters sources said.
• Chevron has been allowed to expand operations in Venezuela and export its oil to the US since November in one of the first major stages in sanctions easing.
• Repsol and Eni got US approvals last year, which have allowed them to resume imports of Venezuelan crude as a way to get debt repaid.
• US negotiations are progressing at a point when the Biden administration is looking to get more barrels onto the market – especially ahead of next years reelection.