Proceeds from a new U.S.-Venezuela energy deal unveiled Wednesday will benefit 'the American people and the Venezuelan people at the discretion of the U.S. government,' according to a U.S. government fact sheet.FEDERICO PARRA/AFP/Getty Images
First, seize illicit Venezuelan oil and then sell it for a profit to global buyers with the help of major banks.
That appears to be U.S. President Donald Trump’s game plan for running the failed South American country after successfully deposing Venezuelan President Nicolás Maduro.
In case you missed it, a new U.S.-Venezuela Energy Deal was unveiled on Wednesday. It paves the way for the expected sale of up to 50 million barrels of Venezuelan crude oil and the lifting of some sanctions by Washington to make it happen.
The U.S. Department of Energy disclosed the agreement after the United States seized two oil tankers under sanctions, carrying large amounts of Venezuelan crude oil. Attorney-General Pam Bondi, meanwhile, warned that several other vessels are also being monitored by U.S. authorities for potential capture.
“The United States is selectively rolling back sanctions to enable the transport and sale of Venezuelan crude and oil products to global markets,” reads a U.S. government fact sheet that touts the energy deal.
Confused? Let me catch you up.
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Earlier this week, the sale of Venezuelan crude oil under sanctions was a clear violation of U.S. law. Any funds derived from such transactions would have rightly been considered the proceeds of crime. The use of financial institutions to reintroduce those illicit monies into the broader economy would have constituted money laundering.
But, hey, that type of thinking is so Tuesday.
Now the U.S. government is relaxing Venezuelan sanctions because it has lined up major banks “to execute and provide financial support” for these energy sales to global buyers.
“All proceeds from the sale of Venezuelan crude oil and oil products will first settle in U.S.-controlled accounts at globally recognized banks to guarantee the legitimacy and integrity of the ultimate distribution of proceeds,” adds the fact sheet.
Let’s cut to the chase. The U.S. government’s plan to cherry-pick which economic restrictions to roll back so that it may snatch and sell Venezuelan oil is a shameless profiteering scheme — one that will ultimately undermine Washington’s sanctions regime and normalize lawlessness in both countries.
U.S.-controlled Venezuelan oil sales will “begin immediately” and “continue indefinitely,” according to the Department of Energy. Proceeds would benefit “the American people and the Venezuelan people at the discretion of the U.S. government.”
In other words, long-suffering Venezuelans, many of whom are impoverished, will be compensated for their oil at the pleasure of the American President.
Talk about lopsided terms.
A woman holds a banner during a march in Caracas on Thursday to demand the release of deposed Venezuelan president Nicolas Maduro and his wife Cilia Flores.FEDERICO PARRA/AFP/Getty Images
The two newly seized tankers, the Bella 1 and the M Sophia, were commandeered in the North Atlantic and the Caribbean Sea, respectively. Their cargoes, which could be collectively worth hundreds of millions of dollars, will be sold as part of the “historic” bilateral energy deal, according to U.S. Secretary of State Marco Rubio.
Crew members of the Bella 1, who tried to evade capture by the U.S. Coast Guard by renaming the tanker “Marinera” and painting a Russian flag on its hull, are being investigated by the Department of Justice. Ms. Bondi is reported as saying that “criminal charges will be pursued against all culpable actors.”
So, the Trump administration wants the world to believe that the tanker under sanctions and its cargo are allegedly linked to illicit activity, but the sale of that seized oil is lawful.
If you’re wondering how the U.S. will differentiate between laundered and legal Venezuelan oil going forward, don’t fret. The White House will just exercise its discretion.
“The United States continues to enforce the blockade against all dark fleet vessels illegally transporting Venezuelan oil to finance illicit activity, stealing from the Venezuelan people,” wrote Secretary of War Pete Hegseth on X.
“Only legitimate and lawful energy commerce – as determined by the U.S. – will be permitted.”
Canada must stand in solidarity with its own energy industry, which is poised to be hurt by U.S. shenanigans in South America, and refuse to buy even a drop of Venezuelan oil.
Opinion: Venezuelan oil affects Canada only a little. But even a little is too much
In 2024, Canada, which is a net exporter of energy, imported $50.1-billion in energy products from other countries, the bulk from the U.S., according to government data.
Assurances from Washington that the only oil transported in and out of Venezuela “will be through legitimate and authorized channels consistent with U.S. law and national security” are meaningless. So, is the suggestion that U.S. control of Venezuelan oil sales will also benefit allies.
This is blatant American imperialism.
Venezuela is a failed petrostate. Mr. Trump’s craven quest for oil profits, however, risks turning it into a banana republic.