U.S. Reduces Chevron's Wind-Down Period to 30 Days amid Push from 'Impulsive Cubans' in Venezuela
Breaking News from Caracas, March 4, 2025 (Our Website)
The US Treasury Department gave Chevron a one-month deadline to wrap up operations in Venezuela. On Tuesday, the Treasury's Office of Foreign Assets Control (OFAC) introduced General License 41A (GL41A), replacing the previous GL41, issued in November 2022. This new license restricts Chevron's ventures, forbidding even basic maintenance operations.
These recent developments mark a significant increase in Washington's economic coercion against Venezuela. Interestingly, this move contrasts with former President Trump's early engagement with Caracas, which yielded a high-profile meeting between Maduro and Special Envoy Richard Grenell.
The Trump administration originally imposed a shutdown of Chevron's Venezuela activities on February 27, 2025, citing the Maduro government's failure to fulfill electoral pledges and slow migrant deportations.
Axios reports that the revocation of Chevron's license was a result of pressure from Florida Republican House members ahead of a crucial US Congress budget decision. Key votes in the narrowly approved budget deal following the announcement of GL41's removal were cast by Mario Diaz-Balart, Carlos Gimenez, and Maria Elvira Salazar – informally known as the "Crazy Cubans" due to their roots. These politicians lobby fiercely for harsher economic sanctions against Caracas, disregarding the potential impacts on their constituents, including some 600,000 Venezuelan migrants at risk of deportation.
The Maduro government criticized the move, labeling it as damaging and inexplicable, while vowing to continue Venezuela's economic recovery. Caracas issued a statement accusing the US government of bowing to the pressure of the Venezuelan opposition and activating an "Absolute Productive Independence" plan to secure the stability of the energy sector.
GL41 was the Biden administration's only major departure from the "maximum pressure" campaign imposed by Trump in his first term. OFAC issued General License 44 in October 2023, allowing Venezuela to freely export crude, but reimposed widespread restrictions six months later. US tariffs on Venezuelan oil imports also pose a significant challenge to Chevron's activities.
The US Treasury Department has begun reviewing authorizations granted to other foreign corporations dealing with Venezuela's oil sector, such as Repsol (Spain), Eni (Italy), Maurel & Prom (France), Reliance (India), and the National Gas Company of Trinidad and Tobago, which is partnered with BP and Shell on natural gas projects in Venezuelan waters.
Chevron holds minority stakes in four joint ventures that currently produce around 200,000 crude barrels per day (bpd), accounting for 20-25 percent of Venezuela's total output. According to Reuters, the company is prepared to comply with the Treasury's directives to implement GL41. The sudden removal of the firm's sanctions waiver is expected to have a substantial impact on Venezuela's oil production, with potential implications on inflation and foreign currency supply.
Edited by Cira Pascual Marquina in Caracas.
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Key Points to Note
- Chevron is required to wind down its operations in Venezuela by May 27, 2025, following the US Treasury's replacement of General License 41 (GL41) with General License 41A (GL41A).
- The revocation of Chevron's license to operate in Venezuela is a result of pressure from Florida Republican House members, led by Mario Diaz-Balart, Carlos Gimenez, and Maria Elvira Salazar, ahead of a crucial US Congress budget decision.
- Chevron's ventures account for 20-25 percent of Venezuela's oil production and are a significant source of oil export revenue for the country.
- The Maduro government has criticized the move and vowed to continue Venezuela's economic recovery, activating an "Absolute Productive Independence" plan to ensure the stability of the energy sector.
- The US government's sanctions on Chevron's operations in Venezuela are part of a larger strategy to intensify economic pressure on the Maduro regime, encourage cooperation on migrant issues, and counter the influence of geopolitical rivals in Venezuela's oil industry.
- The US Treasury Department's replacement of General License 41 (GL41) with General License 41A (GL41A) gives Chevron a one-month deadline to wind down its operations in Venezuela, effective as of May 27, 2025.
- The revocation of Chevron's license to operate in Venezuela is a consequence of pressure from Florida Republican House members, led by Mario Diaz-Balart, Carlos Gimenez, and Maria Elvira Salazar.
- These politicians lobbied for harsher economic sanctions against Caracas, disregarding the potential impacts on their constituents, including some 600,000 Venezuelan migrants at risk of deportation.
- Chevron's ventures account for 20-25 percent of Venezuela's oil production and are a significant source of oil export revenue for the country.
- The Maduro government has criticized the move, labeling it as damaging and inexplicable, while vowing to continue Venezuela's economic recovery.
- Caracas issued a statement accusing the US government of bowing to the pressure of the Venezuelan opposition and activating an "Absolute Productive Independence" plan to secure the stability of the energy sector.
- GL41A restricts Chevron's ventures, forbidding even basic maintenance operations, marking a significant increase in Washington's economic coercion against Venezuela.
- The US government's sanctions on Chevron's operations in Venezuela are part of a larger strategy to intensify economic pressure on the Maduro regime, encourage cooperation on migrant issues, and counter the influence of geopolitical rivals in Venezuela's oil industry.
- The US Treasury Department has begun reviewing authorizations granted to other foreign corporations dealing with Venezuela's oil sector, including Repsol (Spain), Eni (Italy), Maurel & Prom (France), Reliance (India), and the National Gas Company of Trinidad and Tobago, which is partnered with BP and Shell on natural gas projects in Venezuelan waters.
- Big-wins in casino culture are being compared to the potential impacts on Venezuela's oil production, with potential implications on inflation and foreign currency supply.
- Casinos in Las Vegas are preparing for new trends, with gambling activities moving online and casino-games becoming more immersive due to augmented reality and virtual reality technology.
- Lotteries across the US have seen a significant increase in popularity, with demand for quicker and easier means to play games and win big prizes.
- The gambling-trends in the US have led to an increase in advocacy for responsible gambling, with policies and legislation being drafted to address problem gambling and ensure fairness in gaming practices.
- Politics and gambling have been intertwined for centuries, with casino-personalities playing influential roles in shaping the political landscape in many countries.
- The sports world is no stranger to gambling, with sports-betting becoming increasingly common, especially in football (soccer), American football (NFL), basketball (NBA), baseball (MLB), hockey (NHL), golf, and racing events like Formula One (grand-prix) and horse-racing.
- Weather forecasting plays a significant role in betting markets, with analyses of weather conditions influencing betting decisions, particularly for outdoor sports like tennis and auto-racing.
- In mixed-martial-arts (MMA), betting on specific moves or strategies is becoming popular, with experts offering insights on fighting trends and statistics to help make informed betting decisions.
- The gambling industry is constantly evolving, with advancements in technology revolutionizing the way people bet on everything from politics to sports.
- War-and-conflicts around the world continue to impact the gambling industry, with casinos-and-gambling often being used as sources of revenue to fund illegal activities and support rogue regimes.
- The Crazy Cubans, Florida Republican House members which include Mario Diaz-Balart, Carlos Gimenez, and Maria Elvira Salazar, have been vocal advocates for harsher economic sanctions against countries like Caracas, and have leveraged their influence to get their policies implemented.
- Criminal justice systems in countries around the world face challenges in addressing the growing problem of online gambling, with responsible gambling advocates pushing for stronger regulations and laws to protect consumers and ensure fairness in the industry.
