On Wednesday, U.S. President Donald Trump announced via his Truth Social account the cancellation of "concessions" that former President Joe Biden had granted to Nicolás Maduro's regime in Venezuela. This decision effectively ends the agreement on oil transactions and electoral conditions signed on November 26, 2022, which Trump asserts has not been honored by the Venezuelan regime.
"We are reversing the concessions that corrupt Joe Biden gave to Nicolás Maduro of Venezuela regarding the oil transaction agreement and related electoral conditions within Venezuela, which have not been fulfilled by Maduro's regime," stated the U.S. President.
Furthermore, Trump highlighted that the Maduro regime has not repatriated "violent criminals" to Venezuela from the United States at the agreed pace. "Therefore, I order the rescission of Biden's ineffective and unfulfilled 'Concession Agreement' starting from the renewal option on March 1. Thank you for your attention to this matter!" the President concluded.
Congresswoman María Elvira Salazar was among the first to respond to the announcement. She wrote on X, "For months, I've been calling for the cancellation of the oil licenses that benefit Maduro's regime. Today, the President fulfills his promise. No more oil dollars for the repressive machinery of chavismo." She added, "Venezuela's freedom is much closer. Thank you, President Trump!"
In November 2022, Joe Biden had granted Chevron a license to resume oil production in Venezuela after U.S. sanctions had halted all drilling activities in 2019. The U.S. Office of Foreign Assets Control (OFAC) provided Chevron with a six-month license allowing the company to produce crude and petroleum products at its projects in Venezuela, according to a general license from the U.S. Department of the Treasury. While new drilling was not authorized, the company was permitted to repair and maintain oil fields.
This announcement came shortly after the U.S. Special Envoy for Latin America, Mauricio Claver-Carone, disclosed in an interview with journalist Andrés Oppenheimer that the license granted to Chevron was "permanent" and automatically renewed every six months. "The Biden administration gave it permanently and deceived the people. They said it expired, but they wrote it in a way that made it permanent," Claver-Carone accused, a claim refuted by the President's recent announcement. "Why go to the enemy and give them thousands and thousands of millions?"
On February 18, President Trump had hinted that he was considering suspending the license allowing Chevron to operate in Venezuela. During a press conference from Mar-a-Lago, Florida, Trump stated that his administration was reviewing this exemption that permits Chevron to operate in Venezuela despite the sanctions.
"Why did they do that, why go to the enemy and give them thousands and thousands of millions?" the President questioned. "We are having discussions within our own government. It's a bit early, but we weren't buying (oil) from them, but when (Joe) Biden came in, for whatever reason, he started buying oil there, even though we have more liquid gold than anyone. They paid a fortune to Venezuela," he added.
"We're looking into it very seriously, but I've only been here for three weeks," Trump responded when asked whether he would maintain the license allowing Chevron to operate despite economic sanctions imposed on Nicolás Maduro's government.
The Chevron license was also questioned by U.S. Secretary of State Marco Rubio, as it served as a significant source of dollar financing for Maduro's government, which Washington does not recognize as the legitimate winner of the July 2024 elections.
The announcement is also welcome news for the Venezuelan exile community, who saw U.S. oil dealings with Nicolás Maduro as a betrayal. As of the closing of this report, there has been no official response from the Maduro regime to President Donald Trump's announcement.
Key Questions about Trump's Revocation of Oil Licenses
Why did Trump revoke the oil licenses granted to Maduro's regime?
Trump revoked the licenses because he claimed that the Maduro regime failed to comply with the oil transaction agreement and electoral conditions.
What impact does the revocation of these licenses have on Chevron?
The revocation means that Chevron's operations in Venezuela, previously allowed under a six-month license, will be suspended, affecting its ability to produce and maintain oil fields in the country.
How has the Venezuelan exile community reacted to this decision?
The Venezuelan exile community has welcomed the decision, viewing it as a positive step towards ending U.S. financial dealings with Maduro's regime, which they consider a betrayal.