US eases sanctions on Venezuela's Central bank to revive oil sector after Maduro capture

The US has relaxed sanctions on Venezuela’s central bank as the Trump administration seeks to revive the country’s oil industry following the capture of former president Nicolás Maduro. The Treasury issued a general license permitting financial institutions to engage with the central bank and select other entities in the country.

The move enables acting Venezuela President Delcy Rodríguez to make transactions with international banks after a seven-year ban stemming from US sanctions imposed during Trump’s first term. It’s a key step toward easing economic bottlenecks in Venezuela that have delayed payments to local oil companies and undermined President Donald Trump’s plan to quickly boost crude production.

The activity allowed under the general license includes US-dollar denominated banking, payment and correspondent account services. The license, issued by Treasury’s Office of Foreign Assets Control, also lifts sanctions on three state-owned Venezuela banks: Banco de Venezuela, Banco Digital de los Trabajadores and Banco del Tesoro.

A separate general license also provides for the negotiation of contracts with Venezuela’s government as long as the parties receive clearance from OFAC.

Easing sanctions against Venezuela’s central bank would give “real depth to the foreign exchange market,” director of consultancy Ecoanalítica Alejandro Grisanti said before the announcement.

The US Treasury blocked Venezuela’s central bank in 2019, inhibiting most of its activities “to prevent it from being used as a tool of the illegitimate Maduro regime,” according to a statement at the time.

Under Maduro, Venezuela resorted to opaque ways of moving money, including using banks in Turkey and Russia, through cryptocurrency platforms and other methods that opened the door to corrupt practices.

Since Maduro’s capture, Washington has seized control of Venezuela’s oil sales and taken steps to ease sanctions on the nation’s energy sector. Venezuelan crude exports to US ports increased over 150% in March compared to December.

Rodriguez’s interim government has moved swiftly to reform key laws to make Venezuela more hospitable for US investments, including from energy and mining companies.

Bloomberg reported last week that the Trump administration was considering lifting sanctions on Venezuela’s central bank.

For years, sanctions against the central bank have generated uncertainty within the international banking sector. In some cases, they have led to so-called overcompliance, when banks block or delay legitimate transactions related to Venezuela out of fear of potential penalties.

(With inputs from Bloomberg)