A dozen House Democrats on Wednesday sent a letter to 21 companies who attended a Jan. 9 White House meeting about developing Venezuelan oil resources, warning them that any transaction or investment they make there faces legal and financial risks.
The letter, led by Democratic Congressman Sean Casten, said despite any assurances made by the Trump administration, its failure to inform Congress of its legal basis for exerting control of Venezuela’s assets puts any investments they make at risk from Congress or a new U.S. president or Venezuelan government.
KEY QUOTE
“We urge you… to bear in mind that it is possible that efforts to invalidate any such arrangements might be made by Congress, a subsequent Administration, or a future Venezuelan government, and that participation might present your company with legal and enforcement risk,” the lawmakers wrote.
WHY IT’S IMPORTANT
Venezuela sits on the world’s largest reserves of crude oil, and the Trump administration has said it intends to control the OPEC member’s oil industry and revenues indefinitely.
CONTEXT
Trump has been trying to encourage U.S. oil companies to invest billions of dollars there to raise its production levels, promising them a portion of the sales revenues. U.S. officials are currently working to issue a general license that would lift sanctions on Venezuela’s energy sector, sources familiar with the plan told Reuters.
(Reporting by Valerie Volcovici; Editing by Alison Williams)