US Treasury Secretary Scott Bessent (File photo)
US Treasury Secretary Scott Bessent hinted at possible easing of sanctions on Venezuela’s oil exports in the next week, after the arrest of Venezuela President Nicolas Maduro by US forces. The US Treasury is also scheduled to hold discussions with the heads of the International Monetary Fund and the World Bank on the latter’s re-engagement with Venezuela with the aim of releasing close to $5 billion in Venezuelan funds locked away in foreign banks.In a Friday interview with Reuters at a Winnebago Industries facility, Bessent explained the Treasury’s focus on helping Venezuela access its oil revenues. “We’re de-sanctioning the oil that’s going to be sold,” he said, adding that they’re working on ways to help return oil sale proceeds to Venezuela for government operations and public benefit. Explaining the Treasury’s sanctions review, he said, “How can we help that get back into Venezuela, to run the government, run the security services and get it to the Venezuelan people?”
President Donald Trump has already taken action by signing an executive order that protects Venezuelan oil revenue in US Treasury accounts from courts and creditors and to safeguard funds for Venezuela’s future “peace, prosperity and stability.”The Treasury’s plans include converting Venezuela’s IMF Special Drawing Rights, worth about $4.9 billion, into dollars for reconstruction efforts. This mirrors a similar strategy used with Argentina last year, where the Treasury backed a $20 billion swap line to help stabilize their economy.The development marks a significant shift in US-Venezuela relations. The IMF hasn’t engaged with Venezuela for over 20 years, with their last formal assessment done in 2004. Venezuela’s last interaction with the World Bank was in 2007, when then-leader Hugo Chavez declared independence from Washington’s funding.Bessent expects smaller private companies to quickly return to Venezuela’s oil sector, despite some major oil companies showing hesitation. “I think it’s going to be the typical progression where the private companies can move quickly and will come in very quickly,” he said. He also noted that Chevron, which has maintained a presence in Venezuela, is likely to increase its commitment.The Treasury Secretary also suggested a role for the US Export-Import Bank in supporting Venezuela’s oil sector financing, echoing previous statements from US Energy Secretary Chris Wright.