‘Straight-up extortion’: Ex-envoy on US’ deal to import $2 billion of Venezuelan oil after Maduro’s capture

Former US Ambassador to Russia and Political Science professor, Michael McFaul, said the US’ aggression in Venezuela and the subsequent deal to import $2 billion of Venezuelan crude oil is “straight-up extortion”. He said it feels like an episode from acclaimed mafia drama, The Sopranos.

“Trump's foreign policy these days feels like a Sopranos episode. His latest achievement -- securing a $2 billion payment from Venezuela's dictators in return for not invading again -- is straight-up extortion,” said McFaul.

The deal to export up to $2 billion of Venezuelan crude oil to the US comes after a period of heightened US pressure on the Venezuelan government, including a blockade on exports and the capture of former President Nicolas Maduro by US forces. Trump stated on social media that Venezuela will be "turning over" between 30 and 50 million barrels of "sanctioned oil" to the US and specified.

The oil will be sold at its market price and the money will be controlled by the President of the United States of America to ensure that it is used for the benefit of Venezuelan people and the US, said Trump.

In a separate post, McFaul said that Trump is behaving like a “gangster emperor” and if he continues like this, it will end very badly for American people.

Former National Security Advisor of the United States, John Bolton, also criticised Trump over his policies. Bolton said Trump has no strategic sense and all he is concerned about is the sale of oil.

Meanwhile, US Energy Secretary Chris Wright has been tasked with executing the deal, which will see oil shipped directly from Venezuelan vessels to US ports. Discussions between US and Venezuelan officials this week included possible sales mechanisms such as auctions for US buyers and the potential issuance of US licences to state oil company PDVSA’s business partners, enabling future supply contracts.

The move is significant as Venezuela has millions of barrels of oil stored in tankers and terminals, trapped by the blockade imposed by the Trump administration since mid-December. Without the ability to export, PDVSA has had to cut production due to storage limitations, and further reductions appeared likely unless exports could resume, one of the sources said.

Recent talks have led some companies, including past joint venture partners and customers such as Chevron, Reliance, CNPC, Eni, and Repsol, to prepare for incoming Venezuelan cargoes again, according to two separate sources. In the past, similar US administration licences have enabled these firms to refine Venezuelan oil or resell it to third parties.

Chevron remains the only entity currently authorised to export Venezuelan crude to the US, shipping between 100,000 and 150,000 barrels per day in recent weeks.