Venezuelan lawmakers have approved legal changes to make it easier for foreign companies to participate in the country’s oil industry, a move by the city of Caracas in response to demands from US President Donald Trump.
The reforms, backed by acting President Delcy Rodríguez, would open up Venezuela’s oil industry, currently largely controlled by state-owned company Petroleos de Venezuela (PDVSA), and allow foreign companies to manage oil fields at their own risk and cost.
This comes as President Trump has threatened to impose additional tariffs on countries that supply Cuba’s oil and declared a national security emergency over the issue.
The United States has repeatedly made clear it wants American companies to invest in Venezuela’s oil industry since the arrest of former President Nicolás Maduro in early January.
Venezuela has more proven oil reserves than any other country on earth. Rodriguez said Thursday night that the new law could help the country maximize its benefits.
“This law makes the Venezuelan people the rightful owners of their well-being and enables a truly historic qualitative leap that turns the largest oil reserves on earth into the greatest happiness available to the people,” he told the crowd at an event celebrating the move.
Congressional President Jorge Rodríguez, brother of the acting president, echoed similar sentiments, saying the move would “boost the energy sector and encourage oil production in untapped areas.”
Venezuela’s parliament unanimously approved the reforms in a second reading on Thursday afternoon. Currently, it must be signed and issued by Mr. Rodriguez before it can take effect.
On the same day, President Trump signed an executive order threatening to impose additional tariffs on countries that “directly or indirectly supply oil to Cuba.”
In his executive order, President Trump said the Cuban government’s policies and actions “constitute an unusual and extraordinary threat” to U.S. national security and foreign policy.
According to the document, these include Cuba’s collaboration with adversaries such as Russia, the harboring of transnational terrorist organizations such as Hezbollah and Hamas, the persecution of political opponents, the suppression of free speech, and corruption.
President Trump told reporters Thursday night ahead of the premiere of “Melania” that he is not trying to suffocate Cuba’s economy.
“Cuba is a failed state and you have to have bad feelings towards Cuba,” he said. “They have treated people very badly. A lot of Cuban-Americans have been mistreated and probably want to go back. I don’t think Cuba will survive.”
Regarding Venezuela, two sources told CNN earlier this month that the Trump administration plans to use private military contractors to protect the country’s oil and energy assets.
But some oil company executives have expressed discomfort with the idea of pumping capital into Venezuela. ExxonMobil’s CEO said at a White House meeting shortly after Maduro’s arrest that the country is currently “uninvestable.”
Venezuela’s new law was approved on the same day that the US Treasury eased some sanctions on Venezuela’s oil industry. It issued a general license authorizing U.S. companies to cooperate with the Venezuelan government in certain activities related to exporting, purchasing, selling, storing, and transporting the country’s oil.
This is the latest regulatory relief by the Trump administration since Venezuela’s acting government has indicated it is willing to work with the United States and meet many of its demands.
Earlier Thursday, President Trump said he had told Rodriguez that the United States intended to “open up” commercial airspace over Venezuela, although it had not technically been closed. This comes two months after President Trump issued a sweeping directive on social media warning airlines, pilots and criminal networks to avoid Venezuelan airspace.
“American citizens will soon be able to go to Venezuela and be safe and secure there. It’s under very strong control,” President Trump said at a Cabinet meeting Thursday.
Jorge Rodriguez credited President Trump’s announcement to his sister’s diplomatic efforts.
“I think this is a very positive thing. I think it’s a direct result of the peace diplomacy that the president has been doing,” he said.
This story has been updated with additional information.
