I am providing foreign policy guidance to terminate all Biden-era oil and gas licenses that have shamefully bankrolled the illegitimate Maduro regime.
Secretary of State Marco Rubio, February 27
As we detailed in these pages on February 20, the Trump administration followed through on its long-standing policy towards Venezuela. The Biden government had taken several steps to ameliorate relations between the U.S. and the Bolivarian Republic of Venezuela. These negotiations achieved neither global sanctions relief nor free elections. However, one impact of this policy was specific exceptions to allow the lifting of crude oil and delivery of certain petroleum products to Venezuela. This policy allowed Chevron, under General License 41, and other European energy companies to have limited dealings in Venezuela. Both the President and the Secretary of State have a long track record opposing the Maduro government. Similarly, Florida has become a key state for Republicans politically. Opposition to Maduro was a key aspect of Trump’s Florida success. Early reports that some Florida voters felt slighted by potential openings to Venezuela (combined with deportation of Venezuelan citizens previously on protected status) may have promoted taking a harder line against Maduro.
Although the announcement of these changes occurred on February 26, we are only now seeing the relevant regulatory changes. Of note, General License 41 was previously an evergreen license which would renew and have a validity of 6 months. This caused media to (incorrectly, as it turns out) report that the general license would maintain validity until September. However, in line with its “maximum pressure” policy, the administration simply replaced General License 41 and superseded in its entirety with General License 41A. GL 41A authorizes “wind-down” transactions related to the Chevron license through April 3, 2025.
No public information has been provided regarding European companies with permissions or licenses to operate in Venezuela. However, given the policy proposals outlined above, it is likely that such permissions will follow the same tack as Chevron’s license.