United States President Donald Trump has said Venezuela will limit its purchases to American-made goods using proceeds from an exclusive oil agreement with the United States.
“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 in a Truth Social post late Wednesday.
The exclusive arrangement, which involves the sale of Venezuela’s heavy crude oil to the US, was listed among the conditions set by Trump for the interim Venezuelan government following the capture of President Nicolas Maduro.
Trump also urged the South American country to cut economic relations with China, Cuba, Russia, and Iran.
In the same Truth Social post, Trump stated that Venezuela has agreed to conduct business with the United States as its principal partner.
“A wise choice, and a very good thing for the people of Venezuela, and the United States,” he said, describing the commitment.
Although Venezuela holds the world’s largest reserves of heavy crude oil, the United States remains the leading global oil producer.
However, most US oil production is light crude. As only a limited number of American refineries are equipped to process heavy crude into gasoline (petrol), diesel, and other essential products, Venezuelan oil helps meet that specific demand.
Canada and Mexico are among other countries from which the US imports heavy crude.
US Secretary of State Marco Rubio reportedly told lawmakers during a private briefing on Monday that Washington believes it has leverage over Venezuela because the country’s oil tankers are currently full.
Rubio also said US estimates suggest Caracas has only a few weeks before facing insolvency.
The United States was once the primary buyer of Venezuelan oil before diplomatic relations deteriorated, leading to sanctions that restricted Venezuela’s access to global markets, shipping services, and the diluents required for processing heavy crude.