Second oil company ordered by US to pull out of Venezuela
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Trump previously announced that he will impose tariffs on countries that purchase oil and gas from Venezuela amid an immigration row between Washington and Caracas.
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Gas is flared at the Jose Antonio Anzoategui oil complex in Barcelona, Anzoategui State, Venezuela, on Tuesday, January 9, 2024. (AP)
The United States has ordered a second oil-trading company to cease operations in Venezuela, following Trump's plans to impose tariffs on countries that purchase oil and gas from the South American country.
The US Department of the Treasury ordered the Global Oil Terminals and Chevron oil-trading companies to end all financial operations in Venezuela on Saturday and finalize all payments due to Venezuela-based entities by next Wednesday.
Both companies were ordered to cease their operations in the Latin American country by May 27.
Earlier this week, US President Donald Trump announced that he will implement a 25% tariff on countries that procure oil and gas from Venezuela, to go into effect on April 2 as a measure against Caracas for allegedly sending criminals to the United States.
Trump slams tariffs on countries that purchase oil from Venezuela
On March 27, US President Donald Trump intensified economic pressure on Venezuela by declaring a 25% tariff on countries purchasing Venezuelan oil, linking this decision explicitly to Caracas' purported failure to honor political and migration agreements.
"This secondary tariff will take effect on April 2," Trump wrote on Truth Social, accusing the Venezuelan government of sending "tens of thousands" of migrants with a "very violent nature" to American soil.
Previously, Trump terminated a sanctions waiver that allowed Chevron to operate in Venezuela's oil sector since 2022.
China, as the largest buyer of Venezuelan oil, imported around 503,000 barrels per day in February, accounting for 55% of the country's total exports, while other major purchasers, including Spain, Italy, Cuba, and India, now encounter the possibility of trade penalties with the US.
Venezuelan President Nicolas Maduro has promised to counter the mounting economic pressure by the United States with a self-sufficient model under the slogan: "Made in Venezuela", declaring, “We will confront imperialist threats because we have an economic, social, and political model built in Venezuela. We simply do not depend on anyone.”
