U.S. Treasury Secretary Scott Bessent has indicated that the United States could lift additional sanctions on Venezuela as early as next week to support oil sales and facilitate economic recovery in the South American nation. The potential easing comes amid broader efforts to stabilize Venezuela following recent developments, including the capture of former leader Nicolás Maduro by U.S. forces in early January 2026 and his transfer to New York to face drug trafficking charges.
In an interview conducted late Friday during a visit to a Winnebago Industries engineering facility in Savage, Minnesota, Bessent outlined plans to adjust sanctions specifically related to oil transactions.
Sanctions Relief to Facilitate Oil Sales
Bessent stated that the Treasury Department is actively examining changes to enable the repatriation of proceeds from Venezuelan oil sales, much of which is currently stored on ships.
“We’re de-sanctioning the oil that’s going to be sold,” Bessent said. He emphasized the goal of ensuring funds flow back to Venezuela, explaining: “How can we help that get back into Venezuela, to run the government, run the security services and get it to the Venezuelan people?”
When asked about the timeline for further sanctions relief, Bessent replied, “It could be as soon as next week,” though he did not specify which measures would be affected. These steps build on an executive order signed by President Donald Trump on Friday evening, which blocks courts or creditors from impounding Venezuelan oil revenue held in U.S. Treasury accounts. The order directs that these funds be safeguarded to promote “peace, prosperity and stability” in Venezuela.
Existing U.S. sanctions have restricted international banks and creditors from engaging with the Venezuelan government without licenses, posing challenges to a potential $150 billion debt restructuring seen as essential for attracting private capital.
Re-engagement with International Financial Institutions
Bessent also revealed plans to meet next week with the heads of the International Monetary Fund (IMF) and World Bank to discuss their re-engagement with Venezuela. As the U.S. holds dominant shareholding in both institutions, Bessent noted that they had already reached out regarding the country.
He highlighted the possibility of unlocking Venezuela’s frozen IMF Special Drawing Rights (SDRs), currently valued at approximately $4.9 billion (based on about 3.59 billion SDRs at Friday’s exchange rate). These assets, composed of dollars, euros, yen, sterling, and Chinese yuan, remain inaccessible to Venezuela at present.
Bessent said the U.S. Treasury would be willing to convert these SDRs to dollars for use in rebuilding Venezuela’s economy. He referenced a prior precedent, noting that the Treasury last year backed a $20 billion swap line for Argentina using that country’s SDRs to stabilize its currency.
An IMF spokesperson confirmed that the Fund is closely monitoring developments in Venezuela but declined to comment on the proposed meeting. The IMF has not engaged formally with Venezuela for over two decades, with its last Article IV consultation in 2004. Venezuela repaid its final World Bank loan in 2007.
A source familiar with World Bank discussions indicated the institution is in early stages of exploring potential assistance, drawing parallels to rapid responses following regime changes in Afghanistan, Syria, Gaza, and Ukraine.
Outlook for U.S. and Private Sector Involvement in Oil Sector
Bessent expressed optimism about the return of U.S. oil producers to Venezuela, suggesting smaller, privately held companies would move quickly despite hesitation from some majors, such as Exxon Mobil, whose assets were nationalized in the past.
“I think it’s going to be the typical progression where the private companies can move quickly and will come in very quickly,” Bessent said, adding that financing discussions had not yet begun.
He noted Chevron’s long-standing presence, stating: “Chevron has been there a long time and will continue to be there, so I believe that their commitment will greatly increase.”
Bessent also indicated a potential role for the U.S. Export-Import Bank in guaranteeing financing for Venezuela’s oil sector, aligning with prior comments from U.S. Energy Secretary Chris Wright.
