US returns $200 million in oil sales to Venezuela

The United States has completed the process of settling outstanding debts for Venezuelan oil sales. The US administration announced on Wednesday (January 4) that the remaining $200 million of the initial $500 million has been returned to Venezuela.

A large part of this money had previously been paid in advance. The White House's move is seen as an important signal of thawing the long-standing cold trade and political relations between the two countries.

According to a Reuters report, the money was originally owed for oil supplied by Venezuela's state oil company PDVSA, which had been held up for a long time due to US sanctions. The US decided to release the money as a result of recent diplomatic talks between the two countries.

Washington said that the transaction was completed in a transparent manner and will increase the flow of urgent cash into the Venezuelan economy.

Analysts say President Donald Trump's administration is seeking to move toward a compromise with Venezuela's current political leadership. The move to return oil money could pave the way for U.S. investment in Venezuela's energy sector, especially as the United States moves strategically to stabilize global oil supplies and ease long-standing tensions with the Latin American country.

Source: Reuters.