By Jarrett Renshaw
PALM BEACH, Florida, March 13 (Reuters) – The U.S. on Friday expanded sanctions waivers on Venezuela, easing the way for investment in the South American country’s energy and petrochemical sectors and allowing for fertilizer exports as Washington seeks to help American farmers hit by rising prices stemming from the Iran war.
The U.S. Treasury Department issued three updated general licenses as part of the move. The department said the changes were intended to support the revitalization of Venezuela’s energy industry while ensuring global commodity markets remain well-supplied, although it was not immediately clear how much fertilizer Venezuela had available to export, or how quickly it would reach the U.S.
“These authorizations expand permitted investment and activities in Venezuela’s energy industry and allow for the export of fertilizer directly to the U.S. to support our great American farmers,” a Treasury official said.
The move reflects the Trump administration’s effort to cushion U.S. consumers and farmers from rising commodity prices due to the conflict with Iran, which has boosted oil and fertilizer costs and raised concerns about broader inflation. The measures specifically support activities related to electricity generation, transmission and distribution, all seen as critical to boosting oil production after decades of underinvestment.
FERTILIZER IMPORTS FROM VENEZUELA TO U.S.
The authorizations allow U.S. entities to purchase Venezuelan petrochemical products, including fertilizer, for import into the U.S., in addition to buying Venezuelan oil. They also permit companies to provide goods, services and technology to support Venezuela’s electricity and petrochemical sectors, expanding beyond previous permissions focused primarily on oil and gas.
Additionally, the measures allow firms to negotiate contingent contracts for new investments in Venezuela’s electricity and petrochemical industries, though any final agreements must receive separate authorization from the Treasury Department’s Office of Foreign Assets Control.
Transactions involving Russia, Iran, North Korea, China and Cuba remain restricted.
The actions build on a series of sanctions adjustments Washington has rolled out since the January capture and removal of President Nicolas Maduro. Earlier this month, U.S. authorities issued a license authorizing certain transactions involving Venezuelan-origin gold, while oil sanctions were more broadly relaxed in February and January.
Venezuela’s economy has been hard-hit by sanctions, what critics call profound mismanagement and a series of corruption scandals, sometimes involving high-level officials. Economists estimate that inflation was around 400% last year.
(Reporting by Jarrett Renshaw and Ryan Jones, Writing by Christian Martinez and Daphne Psaledakis; Editing by Caitlin Webber, Nathan Crooks, Rod Nickel)
Comments