Talks breakthrough spurs ease in embargo

MEXICO CITY — Venezuela’s government and its opposition have agreed to create a United Nationsmanaged fund to finance health, food and education programs for the poor, while the United States government responded by allowing a major US oil company to resume operations in Venezuela.

The agreement signed in Mexico City on Saturday by representatives of President Nicolas Maduro and the opposition, including the faction led by Juan Guaido, marked the resumption of long-stalled negotiations meant to find a common path out of the country’s grinding crisis.

The US government, in response, agreed to allow the oil company Chevron to pump Venezuelan oil.

The broad terms of the agreement for the UN-managed social fund were announced by the head of a group of Norwegian diplomats guiding the negotiations.

Venezuelan resources held in the international financial system will be directed to the fund, though neither side in the talks nor Norway’s chief facilitator Dag Nylander said whether the US or European governments have agreed to allow frozen assets to be funneled to the new mechanism.

“In line with UN norms and procedures, (the fund’s) objective would be to support the implementation of social protection measures for the Venezuelan people,” Nylander said.

Frozen resources

“The parties have identified a set of resources belonging to the Venezuelan state frozen in the international financial system to which it is possible to progressively access, understanding the need to obtain the authorizations and approvals” from foreign institutions and organizations, Nylander added.

A UN report published earlier this year estimated humanitarian needs at $795 million to help about 5.2 million people in Venezuela through health, education, water and sanitation, food and other projects.

Under former US president Donald Trump, the US ramped up economic sanctions against Venezuela. European banks also hold frozen Venezuelan assets.

About $3 billion is expected to be progressively directed to the fund.

The US Treasury Department on Saturday announced its decision to allow California-based Chevron to resume “limited” energy production in Venezuela after years of sanctions that have dramatically curtailed oil and gas profits that have flowed to Maduro’s government.

Under the new policy, profits from the sale of energy would be directed to paying down debt owed to Chevron.