US might lift more sanctions on Venezuela soon, says Bessent
What's the story
US Treasury Secretary Scott Bessent has hinted at the possibility of lifting more sanctions on Venezuela as early as next week. The move is aimed at easing oil sales and facilitating economic rebuilding in the country. Speaking to Reuters, Bessent revealed that nearly $5 billion worth of Venezuela's frozen International Monetary Fund (IMF) Special Drawing Rights could be used for this purpose.
Economic support
Sanctions review underway to facilitate oil repatriation
Bessent said, "We're de-sanctioning the oil that's going to be sold." He added that the Treasury was looking into changes that would allow the sale proceeds of oil, mostly stored on ships, to be sent back to Venezuela. The aim is to help run the government and provide for security services.
Financial institutions
IMF, World Bank's re-engagement with Venezuela
Bessent will meet with the heads of the IMF and World Bank next week to discuss their re-engagement with Venezuela. The US Treasury is open to converting Venezuela's IMF Special Drawing Rights into dollars for rebuilding efforts. However, while the IMF has not engaged with Venezuela in over two decades, the World Bank's last loan was paid off in 2007.
Development
World Bank explores potential assistance
A source familiar with internal discussions at the World Bank said to Reuters that the lender was exploring how it could help Venezuela. The bank has provided support to countries like Afghanistan and Syria after regime changes and offered early support to Gaza and Ukraine. Bessent also expressed confidence that smaller private firms would quickly return to Venezuela's oil sector despite concerns from major oil firms like Exxon Mobil.