Replacement for Russian energy: US eases sanctions on Venezuela for oil

(Patria) - US officials have asked Venezuela to supply some of its oil to the US as part of an agreement to ease sanctions on the trade of this energy source, two sources familiar with the matter told Reuters.

President Joe Biden yesterday banned oil imports from Russia as part of sanctions imposed on that country due to the invasion of Ukraine. US diplomats have been working for some time to find alternatives to Russian oil and gas. On Saturday, they met with Nicolas Maduro, the President of Venezuela, which were the first bilateral talks between the two countries in several years.

The US imposed sanctions on Venezuela in 2019. If these are lifted or eased, the country could redirect its oil exports to the United States again.

US officials have made it clear that their priority is to ensure supply for the US, sources said. They told their Venezuelan counterparts that the easing of US sanctions would be conditional on oil being directly supplied to the United States.

Reuters has sought comment on these developments from the US government and the Venezuelan state-owned oil company PDVSA, but has not yet received a response.

Progress was made during the talks between US and Venezuelan diplomats, and both sides agreed to further discussions. The US sought free presidential elections and the release of Americans imprisoned in Venezuela during the meeting, while Maduro sought the lifting of sanctions.

But the most important topic was energy. Diplomats discussed the return of Venezuelan oil to markets affected by supply disruptions from Russia, sources said.

The New York Times writes that Maduro is open to oil negotiations.

"Venezuelan oil is available to anyone who wants to produce or buy it, whether it's an investor from Asia, Europe or the US," Maduro said.

Incidentally, Venezuela released two US citizens, which was seen as a gesture of goodwill towards Biden and the US after the visit of the US delegation. One is Gustav Cardenas, one of the six Citgo oil executives arrested in 2017 and convicted on charges that the US government claims are fabricated, and the other is Jorge Alberto Fernandez, a Cuban American detained on unrelated charges.