As fertilizer prices surged in the wake of the Iran war, the United States further eased sanctions on Venezuela as a last-resort measure to reduce the hit to domestic farms.
Reuters reported on the 13th (local time) that the U.S. Treasury Department renewed and issued three general licenses related to Venezuela's energy industry and petrochemical items.
The Treasury Department said the move is intended to support revitalization of Venezuela's energy industry and keep supplies in the global commodities market running smoothly.
With this measure, U.S. corporations can purchase Venezuelan petrochemical products, including fertilizer, and import them into the United States. It also became possible to provide goods, services, and technology to support Venezuela's electricity and petrochemical institutional sector.
However, final contracts must receive separate approval from the Treasury Department's Office of Foreign Assets Control (OFAC).
Meanwhile, in Jan., after arresting former Venezuelan President Nicolás Maduro, the United States has been restoring diplomatic relations and implementing sanction relief measures by improving ties with Venezuela's interim government.
However, some interpret the move as an effort to ease the burden after oil and fertilizer prices soared following the war with Iran, increasing the strain on U.S. farms and raising inflationary pressure. As the Strait of Hormuz, through which crude oil and fertilizer pass, has been effectively blocked due to the fallout from the war, the United States is experiencing disruptions in sourcing raw materials.
The United States also temporarily eased some sanctions on Russia the previous day to temper the surge in oil prices and issued a measure authorizing the sale for one month of petroleum products already shipped.