Trump says Venezuela to purchase US goods with oil deal revenue

WASHINGTON - President Donald Trump said Venezuela would be “purchasing ONLY American Made Products” with revenue from a deal that will see the country relinquish as much as 50 million barrels of oil
to the US.

“These purchases will include, among other things, American Agricultural Products, and American Made Medicines, Medical Devices, and Equipment to improve Venezuela’s Electric Grid and Energy Facilities,” Mr Trump said in a social media post.

“In other words, Venezuela is committing to doing business with the United States of America as their principal partner.”

Mr Trump has been pressuring Venezuela’s interim leader, Ms Delcy Rodriguez, to increase economic ties with the US after last weekend’s operation to capture
leader
Nicolas Maduro
.

On Jan 6, Trump announced the plans to see Venezuela send oil to the US for sale, worth roughly US$2.8 billion (S$3.6 billion) at the current market price.

Revenue from the sales will be held in US Treasury accounts, a move that would protect the proceeds from Venezuela’s creditors, a person familiar with the matter said.

The US has already begun marketing Venezuelan crude
, White House Press Secretary Karoline Leavitt told reporters during a briefing on Jan 7.

“We’re not stealing anyone’s oil,” Energy Secretary Chris Wright said Wednesday during an interview with CNBC.

“We’re going to restart the selling of Venezuelan oil on global crude markets, put it in accounts in the name of Venezuela and bring those funds back into Venezuela for the benefit of the Venezuelan people.” 

Proceeds from Venezuela oil sales will not initially be used to repay Exxon Mobil Corporation, ConocoPhillips and other US companies whose assets were nationalised by Maduro’s predecessor Hugo Chávez, in the mid-2000s, Mr Wright said.

He added that those companies will need to be compensated but characterized it as a “long term issue”. BLOOMBERG