WSJ: The U.S. wants to ease sanctions against Venezuela to allow it to sell oil on the international market

The U.S. is discussing with Venezuela a proposal to ease sanctions in exchange for Chevronʼs ability to extract oil there. This will increase the amount of oil on the world market and is intended to reduce prices.

This is reported by The Wall Street Journal with reference to sources.

"The Biden administration is preparing to ease sanctions on Venezuela in exchange for Chevron getting the opportunity to resume oil production there," several sources told the publication.

Thus, in the case of concluding such an agreement, a potential opportunity to export oil from Venezuela to the U.S. and European markets will open. At the same time, Venezuelan President Nicolas Maduro will have to resume negotiations with the opposition and create the necessary conditions for holding free and democratic elections in 2024.

Currently, the parties are developing an agreement that will allow the release of hundreds of millions of dollars of Venezuelan state funds frozen in American banks to pay for the import of food, medicine and equipment.

According to the U.S. officials, "the deal could fail," but "if it does, only a limited amount of new oil will enter the world market in the short term."

• Both a political and an economic crisis continue in Venezuela. Inflation in the country was almost 3 000% in 2020, and about 9 600% in 2019.
• The Venezuelan authorities are conducting the denomination for the third time. In 2008, three zeros were removed from bills, and in 2018, five were removed. But the crisis continued, and in 2020 the Central Bank of Venezuela again issued bills in denominations of 200 000 and 500 000 bolivars. A loaf of bread cost 7 million bolivars.