US sets conditions for Venezuela, urges it to cut ties with China, others

The United States has imposed a new set of conditions on Venezuela as part of efforts to reopen and expand its oil production and exports, demanding that Caracas reduce its strategic and economic ties with China, Russia, Iran and Cuba.

According to reports citing US officials and ABC News, Washington wants Venezuela’s interim government to prioritise oil sales to the United States and to enter into an exclusive energy partnership with American companies.

Caracas has also been told to favour US buyers when selling its heavy crude.

In talks with lawmakers, US Secretary of State Marco Rubio said the administration believes it has leverage over Venezuela’s oil sector, noting that storage facilities are full and that the country could face severe financial pressures if it cannot sell its crude.

Senator Roger Wicker, chairman of the US Senate Armed Services Committee, told ABC that the US aims to control Venezuelan oil arrangements through diplomatic and economic measures rather than through a military deployment.

President Donald Trump has said Venezuela will transfer between 30 million and 50 million barrels of oil to the United States, to be sold at market prices with proceeds managed by Washington. This, he asserts, will benefit both Venezuelan and US interests.

Venezuela, which holds the world’s largest proven oil reserves, saw its output and exports plunge over recent years due to economic turmoil and sanctions.

Prior to recent developments, China had been a major creditor and buyer of Venezuelan crude, underpinning extensive financial ties between Beijing and Caracas.

Beijing has criticised Washington’s demands as an infringement on Venezuela’s sovereignty, calling the push for an exclusive partnership and severing of ties with other countries a violation of international norms.

Culled from punch