US eases some sanctions on Venezuela
The US Department of Treasury (DoT) has lifted certain sanctions on Venezuela’s oil sector, allowing US-based companies greater flexibility to sell the country’s crude oil.
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US-based oil companies can lift, sell, transport, store and refine Venezuelan crude oil, the US DoT’s Office of Foreign Assets Control (OFAC) said.
Last week, Venezuela’s acting President Delcy Rodriguez signed a law granting autonomy for private investments in the OPEC nation’s oil industry, Reuters reported.
Following the announcement, OFAC allowed some sanctions relief to the Venezuelan oil sector.
The license permits dealings with the Venezuelan government, state-run oil firm PdVSA and its majority-owned subsidiaries, as long as the underlying contracts fall under US jurisdiction.
OFAC has also authorised certain shipping services, including chartering vessels, obtaining marine insurances, and "arranging port and terminal services, including with port authorities or terminal operators that are part of the Government of Venezuela."
Notably, Washington has not lifted existing sanctions on oil production in Venezuela. The license does not allow transactions with entities linked to China, Russia, Iran, Cuba, or North Korea.
The development comes days after Venezuela’s interim government opened its oil sector to US investors, after the unwarranted arrest of President Nicolas Maduro.
By Aparupa Mazumder
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