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Investing.com -- The Trump administration is planning to intensify pressure on Venezuela by compelling more companies to halt their operations in the country, according to a report from Bloomberg. This comes after the directive given to Chevron Corp. (NYSE:CVX) to terminate its operations, as stated by sources familiar with the situation.
Among the companies being instructed to end operations in Venezuela within 30 days, once their waivers to operate without violating sanctions are revoked by the US, are French oil producer Etablissements Maurel & Prom SA and an asphalt firm managed by Florida oil magnate Harry Sargeant. The US Treasury is expected to kickstart this process as early as Friday, according to one insider.
The cessation of these companies’ activities in Venezuela will further strain the country’s struggling economy, and increase pressure on President Nicolas Maduro. This comes as Trump seeks an agreement over democratic reforms and the acceptance of more migrants from the US. Earlier this week, the Treasury Department instructed Chevron to conclude its Venezuela operations by April 3, a significantly shorter timeframe than the usual six-month wind-down period.
Venezuela’s economy is heavily dependent on oil. Chevron, along with other smaller companies that received authorization from Washington to operate in the country, have been vital growth drivers, especially as Venezuela’s state oil company is in a state of disarray due to years of underinvestment.
However, the Trump administration’s approach to Venezuela is not uniform, with various advisers and officials holding differing views. There is a possibility that the president might change direction at the last moment, allowing oil companies to continue their operations in the country.
Other foreign companies operating in Venezuela, such as Spain’s Repsol SA (OTC:REPYY) and Italy’s Eni SpA, are awaiting information on whether the US will revoke their waivers to work in the country without facing sanctions.
Requests for comments from the Treasury Department and Venezuela’s information ministry have yet to be responded to.
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