US Ready to Lift Sanctions on Russian Oil After the War in Ukraine Ends
US Treasury Secretary Scott Bessen emphasized that if peace agreements are reached between Russia and Ukraine, as well as issues regarding Venezuela and Iran are resolved, a significant volume of oil currently under sanctions could return to the global market. According to him, this would substantially lower energy prices.
This is reported by AgroReview
“Thanks to peace agreements, we will be able to see a significant decrease in oil prices. If the issues regarding Venezuela, Iran, as well as Russia and Ukraine are resolved, a huge amount of oil from under the Treasury sanctions could enter the market.”
New US Restrictions for the Venezuelan Oil Sector
Concerns in Moscow have been raised by the new US government license for activities involving Venezuelan oil. According to the updated rules from the US Treasury, any agreements by American companies regarding the supply of equipment and technology for oil and gas extraction to Venezuela cannot include companies or financial entities linked to Russia, Iran, North Korea, China, or Cuba. The prohibition on cooperation with the state oil company PDVSA and all companies in which PDVSA holds at least 50% of the shares is specifically highlighted.
Losses of Russian Investments and Influence in Latin America
Such sanctions will hit Russia hard, which has long actively invested in the energy sector of Venezuela. Russian state companies have invested in extraction, infrastructure modernization, and financing joint oil projects, with the volume of Russian investments in the country estimated at approximately $17 billion. In particular, in the mid-2010s, the company Rosneft established five joint ventures with PDVSA. The new restrictions may lead to Russian companies losing access to Venezuelan oil and partnership projects, significantly reducing Russia’s revenues.
Moreover, international partners may refuse to cooperate with Moscow due to the new rules. Venezuela has been one of the key allies of the Russian Federation in the Western Hemisphere, but economic restrictions could significantly weaken Russian influence in the region.