US Eases Venezuela Sanctions to Boost Global Fertilizer and Oil Supply

The US Treasury Department said the changes were made through updated licences issued by its Office of Foreign Assets Control (OFAC) as part of efforts to revive Venezuela's energy industry and support global commodity markets.

"The Trump administration has been rapidly delivering on @POTUS' promise to help restore Venezuela's economy to benefit both the American and Venezuelan people," the Treasury Department said.

The department said the updated licences are intended to revive activity in Venezuela's oil and petrochemical sectors while helping maintain stable global supply chains.

"Today, the Treasury Department's Office of Foreign Assets Control updated several Venezuela-related licenses to further support the revitalization of the country's energy sector and help ensure a well-supplied global commodity market," the statement said.

Under the updated framework, the United States has expanded permitted investment and operational activities in Venezuela's energy industry. The move also allows the export of fertilizer products from Venezuela directly to the United States.

"These authorisations expand permitted investment and activities in Venezuela's energy industry and allow for the export of fertilizer directly to the US to support our great American farmers," the Treasury Department said.

Treasury documents show that the updated licences broaden the scope of transactions allowed under existing Venezuela sanctions regulations.

The measures authorise activities related to the lifting, exportation, sale, storage, marketing, purchase, and transportation of Venezuelan-origin oil by established US entities, subject to specified conditions.

They also allow logistical and commercial arrangements necessary for such transactions, including shipping, insurance, and port services linked to Venezuelan crude exports.

US officials clarified that Venezuelan-origin oil includes crude oil and petroleum products extracted, refined, or exported from Venezuela.

The updated framework also expands the scope of petrochemical products covered under the licences to include fertilizers and related precursor chemicals.

Another licence allows companies to negotiate contingent contracts for new investments in Venezuela's oil, gas, petrochemical, and electricity sectors, although execution of those agreements would still require additional US authorization.

For countries such as India, one of the world's largest fertilizer importers, any increase in global fertilizer supply could help moderate prices in international markets.

India imports large volumes of urea, phosphate, and potash-based fertilizers to support its agricultural sector, making global fertilizer availability a key factor for domestic food production and subsidy costs.

Venezuela holds some of the world's largest proven oil reserves, but its energy sector has suffered a steep decline over the past decade because of economic mismanagement, sanctions, and infrastructure deterioration.

- IANS