The US will allow two European companies to transport oil from Venezuela to Europe

Two European oil companies, the Italian ENI and the Spanish REPSOL, are expected to start transporting oil from Venezuela to Europe in July to cover quantities that will disappear from the European market due to the embargo on Russian oil, the agency said. Reuters news sources five updated on.

The oil shipment to pay off Caracas’s debts will be repeated two years after their suspension, when the United States escalated sanctions on the Latin American country as part of a so-called “maximum pressure” campaign on the government of Socialist President Nicolas Maduro.

The quantities of oil that the two European companies will be allowed to transport are not very large and the impact of the development on world oil prices will not be spectacular, one of the sources discounted. However, the green light of Washington for the resumption of crude oil transportation has symbolic if nothing else for Mr. Maduro’s government.

The State Department approved the transfer in letters last month to the two European companies, always according to Reuters sources. The government of US President Joe Biden wants Venezuela’s crude to help reduce Europe’s dependence on Russia for energy supplies and at the same time reduce sales to China. Another goal is to boost talks between President Maduro’s government and the opposition, according to two Reuters sources.

The key term is oil “to go to Europe”, “can not be resold elsewhere”, insisted one of the sources.

Washington believes that Venezuela’s public oil company, PdVSA, will not make any profit from these unpaid transactions, unlike Caracas’s sales to Beijing, according to the same source.

China has not imposed sanctions on Russia over its invasion of Ukraine and continues to buy oil and gas from Moscow, despite US calls.

About 70% of Venezuela’s oil sales today go to China’s refineries.

Although the State Department’s moves were made last month, details and restrictions have not been made public. Neither ENI nor REPSOL wanted to comment when they were contacted by Reuters.

Last month, Venezuelan Vice President Delsi Rodrεςguez said on Twitter that she hoped the US move would “pave the way for the complete lifting of illegal sanctions that affect all of our people.”

The day before yesterday, President Maduro welcomed Washington’s “small but important measures”.

Mr Biden’s government sent an official to Caracas in March. Mr Maduro’s government has since released two of the 10 Americans imprisoned for various reasons in the country, and has vowed to resume talks with the opposition on holding elections. The date they will be made has not been set yet.

Biden’s administration’s moves toward Venezuela, however, are already being criticized by Republicans – and some Democrats – politicians.

The US official, however, stressed that Washington’s policy towards Venezuela has not changed: sanctions will only be “relaxed” if progress is made towards “democratization” and “free” elections are held, otherwise “they will become tougher” again.

Last month, the Biden government allowed Chevron, the largest U.S. oil company still in Venezuela, to begin talks on future activities with the Maduro government.