What's happened
The US has issued a license to explore oil in Venezuela, while Russia's investments face US sanctions and US-backed actions. Moscow and Caracas maintain strategic ties, but US pressure threatens Russia's energy interests in the country amid geopolitical tensions.
What's behind the headline?
The current situation underscores the fragility of Russia's strategic interests in Venezuela. The US license aims to facilitate oil exploration but explicitly excludes Russian and Chinese entities, signaling a clear US intent to limit Moscow's influence. Russia's investments, including assets owned by Roszarubezhneft, are at risk of being written off as US sanctions tighten. The US's military operation in Venezuela, which resulted in Maduro's capture, marks a significant escalation that could lead to a complete breakdown of Russian-Venezuelan energy cooperation. Moscow's claims that its assets are fully owned by Russia and acquired legally are unlikely to prevent losses, especially as US sanctions target Russian companies involved in Venezuelan oil. The broader geopolitical context reveals a US strategy to diminish Russia's role in Latin America, aligning with efforts to replace Russian energy exports with American LNG and oil. This will likely lead to a significant reduction in Russian economic influence in Venezuela, impacting Moscow's global energy ambitions and its ability to sustain investments in the region. The next steps will involve Russia reassessing its Venezuelan assets and possibly withdrawing from joint ventures, while the US consolidates its influence through increased sanctions and diplomatic pressure.
What the papers say
The articles from Reuters, Business Insider UK, and The Moscow Times collectively highlight the escalating US pressure on Russia's energy investments in Venezuela. Reuters reports that the US issued a license to explore oil, excluding Russian and Chinese entities, while Moscow's officials emphasize their investments are legally owned and fully Russian. Business Insider UK features Sergei Lavrov's comments linking US sanctions to broader efforts to curb Moscow's influence, noting the potential for Russian assets to be written off. The Moscow Times echoes these concerns, emphasizing Russia's claims of ownership and the strategic partnership with Venezuela, but also acknowledging the US's aggressive stance following Maduro's capture. The contrasting perspectives reveal a clear geopolitical battle: Russia maintains its legal and strategic commitments, but US sanctions and military actions threaten to erode Moscow's influence and economic interests in Venezuela. The US aims to weaken Russia's energy footprint in Latin America, while Russia insists its investments are legitimate and continues to assert its strategic ties with Caracas. This dynamic underscores the broader contest for influence in the region amid ongoing US-Russia tensions.
How we got here
Russia has long maintained close ties with Venezuela, especially in energy and military sectors. Russian companies like Roszarubezhneft have invested heavily in Venezuelan oil projects, and the two countries signed a strategic partnership in 2025. US sanctions and political actions have strained these relations, especially after the US captured Venezuelan President Nicolás Maduro in January, disrupting decades of cooperation.
Go deeper
Common question
-
Why Is Russia Facing Oil Losses in Venezuela?
Russia's long-standing energy and strategic ties with Venezuela are now under threat due to US sanctions and geopolitical tensions. While Moscow insists its investments are legal and vital to its interests, US actions aim to weaken Russia's influence in Latin America. Curious about how these developments impact global energy markets and international relations? Below are the key questions and answers to understand this complex situation.
More on these topics
-
Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and many small islands and islets in the Caribbean Sea.
-
PJSC Rosneft Oil Company is a Russian integrated energy company headquartered in Moscow. Rosneft specializes in the exploration, extraction, production, refinement, transport, and sale of petroleum, natural gas, and petroleum products.
-
The PJSC Lukoil Oil Company is a Russian multinational energy corporation headquartered in Moscow, specializing in the business of extraction, production, transport, and sale of petroleum, natural gas, and petroleum products.
-
Nicolás Maduro Moros is a Venezuelan politician serving as president of Venezuela since 2013. His presidency has been disputed by Juan Guaidó since January 2019, although Maduro is the real president.
-
Russia, or the Russian Federation, is a transcontinental country located in Eastern Europe and Northern Asia. Covering an area of 17,125,200 square kilometres, it is the largest country in the world by area, spanning more than one-eighth of the Earth's in