The Trump administration has put an end to a controversial oil deal with Venezuela, reversing a key Biden-era concession that had allowed Chevron to continue operations in the country. The move comes after the Maduro regime failed to meet expectations on repatriating illegal migrants, including violent gang members.
President Donald Trump announced the decision on Truth Social, stating that his administration was “reversing the concessions” from a 2022 oil agreement that had been part of negotiations with Venezuela as detailed here. While he did not mention Chevron directly, the oil giant was the sole beneficiary of the Biden-era license.
🚨🇺🇸🇻🇪 | HUGE NEWS FOR VENEZUELA: President Trump is officially reversing Biden’s disastrous oil concessions to the Maduro regime, effective March 1st. This was one of the biggest lifelines keeping the dictatorship afloat, and it’s finally being cut off.
For years, Venezuelans… pic.twitter.com/rzmLaCuenJ
— Rafael E. Struve (@RafaelEStruve) February 26, 2025
The agreement was meant to pressure Venezuela into improving electoral conditions and taking back deported migrants, particularly members of the Tren de Aragua gang per this report. Trump’s administration had been tracking the deportation process and determined that the Maduro government had not acted at the necessary pace.
Six Americans who were being held hostage in Venezuela and were freed Friday night call President Trump on the plane ride home. pic.twitter.com/OVBPX2ss36
— Defiant L’s (@DefiantLs) February 1, 2025
The economic consequences of the move were immediate, with reports indicating that Venezuela’s oil bonds dropped following Trump’s announcement. The cancellation of Chevron’s license means the company must leave Venezuela by July, marking a significant shift in U.S.-Venezuela relations.
Molotov es tan pero tan imbecil que cree que una acción armada se debe decir en medios y así poder alertar a los malos…..
Hace menos de 24 horas la gente ni se imaginaba que Trump iba a volver a sancionar a Venezuela,así que debemos estar conscientes que Trump es imprescindible https://t.co/w6oqk7M6oC
— GABO⚔️الحلبي (@Abujirji) February 27, 2025
Chevron had taken a cautious approach under the Biden-era concession, avoiding large investments and focusing on infrastructure maintenance and debt recovery. However, with Trump shutting down the deal, the company’s presence in Venezuela will be eliminated entirely.
By revoking the oil license, Trump is making it clear that his administration will not reward governments that fail to meet their obligations. The decision is the latest example of his commitment to enforcing immigration policy and holding foreign leaders accountable for their promises.
