Biden May Authorize Diesel-For-Oil Swaps for Venezuela
CARACAS The administration of Venezuelas leftist incumbent Nicolás Maduro may finally see a glimmer of hope regarding the severe sanctions imposed by Washington on any commercial activity by state-run oil company Petróleos de Venezuela (PDVSA) after US president-elect Joe Biden appointed Janet Yellen and Anthony Blinken to lead the nations Treasury and State departments, respectively.
According to a report by the Institute of the Americas in California and an analysis carried out by the academic journal Energy & Environment (E&E), members of Bidens team may ease the sanctions by allowing Maduro to swap diesel for crude oil in the coming months.
Analysts believe that that the Joe Biden administration could adopt a series of measures for humanitarian reasons involving Maduro such as potentially bringing back diesel-for-oil swaps that the Trump administration banned in October, E&E wrote in a note as quoted by Venezuela-based energy news site Petroguía on Wednesday.
On the other hand, the Institute of the Americas added that there may be fewer sanctions and attempts for political change in countries such as Venezuela under Biden. However, the NGO noted that the deprioritization of the sanctions may be accentuated or they may be gradually lifted through concessions rather than having a complete reversal of them in countries such as Cuba, Nicaragua, and Venezuela.
Former Federal Reserve chair Yellen will now take care of the policies regarding the PDVSA sanctions, through the Office of Foreign Assets Control (OFAC), as well as the granting of licenses and permits so that US companies continue operating in Venezuela under limited and restricted conditions, including the possibility of buying crude oil extracted by PDVSA or in partnership with the company.
For his part, Blinken has already taken a hard line on Venezuela after saying in an opinion article published in January 2019 that the Donald Trump administration deserves credit for having isolated Maduro, E&E wrote in its note.
Blinken served as US Deputy Secretary of State from 2015 to 2017 and Deputy National Security Advisor from 2013 to 2015 under President Barack Obama.
Source: Latin American Herald Tribune –
