US prepares to ease sanctions on Venezuela due to oil crisis
Kyiv • UNN
Washington will allow foreign companies to operate in Venezuela due to oil shortages and the war. Experts predict only a gradual increase in production.
The United States plans to partially ease sanctions against Venezuela to increase the global oil supply amid the war with Iran and a sharp rise in prices. According to sources, the decision could be announced in the coming days. This is reported by Bloomberg, writes UNN.
Details
This involves expanding permits for foreign companies to operate in Venezuela without violating US sanctions. The creation of a broader mechanism for business access to the country's oil sector is also being considered.
We will continue to take action when necessary to restore peace and prosperity in Venezuela
Potential participants include companies from India, Europe, and Brazil, as well as major energy giants that already have experience working in the country.
The reason is war and an expensive oil market
The decision is related to the oil shortage due to the conflict in the Middle East. Since the beginning of hostilities, oil prices have risen by more than 40%. Washington is looking for opportunities to quickly increase production, and Venezuela, with its large reserves, has become one of the key options.
There will be no quick effect
Despite the potential easing of sanctions, experts doubt a quick result.
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Venezuela's oil industry infrastructure is in disrepair, and production is only about a third of 1990s levels.
In the short term, this is absolutely marginal
It is expected that even under favorable conditions, the country will be able to increase production only gradually, which will not cover the global deficit.