U.S. Treasury Department lifts restrictions on Venezuela, grants license for Petróleos de Venezuela

Business, North America, Politics, South America

NORTH AMERICA (NPA) — March 18, 2026 — The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) on Wednesday issued a license authorising American entities to engage in business transactions with Venezuela’s state-owned oil company, Petróleos de Venezuela, S.A. (PdVSA), and its subsidiaries.

The agency said the license will benefit both the United States and Venezuela, while supporting the global energy market by increasing available oil supply and encouraging new investment in Venezuela’s energy sector.

In a statement, the Treasury Department noted: “Today, the Treasury Department’s Office of Foreign Assets Control issued a license broadly authorising established U.S. entities to engage in many types of transactions with Venezuela’s state-owned oil company, Petróleos de Venezuela, S.A. (PdVSA), and its subsidiaries.”

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“This license will benefit both the United States and Venezuela, while supporting the global energy market by increasing the supply of available oil. It will also help incentivise new investment in Venezuela’s energy sector.”

The U.S. Treasury Department had previously sanctioned Venezuela over human rights abuses, corruption, election fraud, and ties to drug trafficking and armed groups. Those measures, which began in 2014, expanded into broad economic restrictions on Venezuela’s oil and gold sectors.

The consequences were severe: Venezuela’s economy contracted sharply, foreign investment dried up, and access to international financial markets was restricted. While sanctions weakened the Maduro government’s ability to fund operations, they also worsened living conditions for ordinary citizens, contributing to shortages of food, medicine, and fuel, while pushing Caracas to deepen ties with Russia, China, and Iran.