U.S. Treasury Secretary Scott Bessent has announced that additional sanctions on Venezuela could be lifted as early as next week, marking a significant shift in U.S. policy toward the South American nation. Speaking in an interview on Friday during a visit to a Winnebago Industries engineering facility, Bessent outlined the administration's approach to facilitating Venezuelan oil sales and economic recovery.

Sanctions Relief and Oil Sales

The Treasury Department is actively examining changes that would facilitate the repatriation of oil sale proceeds currently stored largely on ships back to Venezuela. "We're de-sanctioning the oil that's going to be sold," Bessent stated, emphasizing the administration's focus on enabling legitimate oil commerce.

The Treasury Secretary explained that the goal is to determine "how can we help that get back into Venezuela, to run the government, run the security services and get it to the Venezuelan people." However, Bessent did not specify which particular sanctions would be targeted for removal.

IMF and World Bank Re-engagement

Bessent revealed plans to meet with the heads of the International Monetary Fund and World Bank next week to discuss their re-engagement with Venezuela. The Treasury Secretary, who controls the dominant U.S. shareholding in both institutions, indicated that both organizations have already reached out regarding Venezuela.

Venezuela currently holds approximately 3.59 billion Special Drawing Rights, worth about $4.90 billion at Friday's exchange rate, but cannot currently access these funds. Bessent expressed willingness to convert these SDRs to dollars for use in rebuilding Venezuela's economy.

Private Sector Investment Outlook

The Treasury Secretary expressed optimism about private sector re-entry into Venezuela's oil sector, particularly smaller, privately held companies. "I think it's going to be the typical progression where the private companies can move quickly and will come in very quickly," Bessent noted.

Regarding established players, Bessent highlighted Chevron's continued presence: "Chevron has been there a long time and will continue to be there, so I believe that their commitment will greatly increase." He also suggested a potential role for the U.S. Export-Import Bank in guaranteeing financing for Venezuela's oil sector.

Executive Protection Measures

President Donald Trump signed an executive order on Friday evening blocking courts or creditors from impounding Venezuelan oil revenue held in U.S. Treasury accounts. The order declares that these funds should be safeguarded to help Venezuela create "peace, prosperity and stability."

These policy changes come as the Trump administration works to stabilize Venezuela and encourage the return of U.S. oil producers to the country. Current U.S. sanctions have prevented international banks and creditors from engaging with the Venezuelan government without proper licensing, creating impediments to a complex $150 billion debt restructuring process that many view as crucial for attracting private capital back to Venezuela.

The United States may lift additional sanctions on Venezuela as early as next week to facilitate oil sales, Treasury Secretary Scott Bessent told Reuters in a recent interview. The move represents a significant shift in US policy toward the South American nation's energy sector.

Sanctions Relief for Oil Sales

"We're de-sanctioning the oil that's going to be sold," Bessent was quoted as telling the news agency. However, he did not specify which particular sanctions may be removed from Venezuela's oil sector. The potential sanctions relief comes as the Trump administration seeks to take greater control of Venezuela's oil industry.

Major Investment Push for Oil Infrastructure

The administration has called for substantial private sector investment to revive Venezuela's oil infrastructure. Trump has urged major energy companies to commit significant capital to the country's energy sector.

IMF Assets and Economic Reconstruction

Bessent also highlighted the potential use of Venezuela's monetary assets held at international institutions. Nearly $5 billion in Venezuela's special drawing rights at the International Monetary Fund could be utilized to help rebuild the nation's economy, according to the Treasury Secretary.

Upcoming International Meetings

The Treasury Secretary plans to engage with key international financial institutions next week to discuss Venezuela's re-integration into the global economy. Bessent indicated he will meet with the heads of both the IMF and the World Bank to discuss re-engaging with Venezuela, signaling a coordinated approach to the country's economic recovery.