United States President Donald Trump has said Venezuela will be required to spend proceeds from its exclusive oil arrangement with the US strictly on American-made goods, following recent political changes in the South American nation.
Okay News reports that Trump disclosed the terms late Wednesday in a post on his Truth Social platform, stating that funds from the oil deal would be channelled into US agricultural produce and medical supplies, as well as equipment needed to rehabilitate Venezuela’s energy infrastructure.
“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,” Trump said.
The oil arrangement, which centres on the sale of Venezuela’s heavy crude to the US, was listed among the conditions imposed by Washington on the interim Venezuelan authorities following the arrest of former president Nicolas Maduro.
Trump also said Caracas had agreed to cut economic ties with China, Cuba, Russia, and Iran as part of a broader realignment with the US.
According to the US president, Venezuela has now committed to engaging America as its principal economic partner. “A wise choice, and a very good thing for the people of Venezuela, and the United States,” he said of the decision.
Venezuela holds the world’s largest reserves of heavy crude oil, while the US remains the world’s leading oil producer.
However, much of American production is light crude, meaning that Venezuelan heavy oil plays a strategic role for US refineries designed to process heavier grades into petrol, diesel, and other refined products. Canada and Mexico are the other major suppliers of heavy crude to the US.
US Secretary of State Marco Rubio reportedly told lawmakers during a closed briefing earlier this week that Washington believes it has leverage over Caracas due to the country’s deteriorating financial position.
Rubio was quoted as saying that Venezuela’s oil tankers are currently full and that the US estimates the country has only a few weeks before facing insolvency.
Before diplomatic relations collapsed years ago, the US was Venezuela’s largest oil customer. Sanctions imposed during the Maduro era later restricted Caracas’ access to international markets, shipping services, and the specialised diluents required to process its heavy crude, leaving the industry largely isolated until the latest developments.
