U.S. Sanctions Squeeze Eni's Venezuelan Ventures

U.S. authorities have revoked Eni's ability to be repaid for Venezuelan gas production through oil supplies, impacting operations in the region. Eni, among others like Repsol and Reliance, seeks compliance with sanctions while Venezuelan leaders decry the economic impact. Companies brace for further repercussions.

The U.S. government has revoked the ability of Italy's Eni to receive payment for Venezuelan gas production with oil supplies provided by PDVSA, Venezuela's state oil company. This move comes amid a broader enforcement of sanctions, affecting several international companies with ties to Venezuelan oil.

U.S. authorities have informed foreign partners of PDVSA, such as Eni, Repsol, Maurel & Prom, and Reliance Industries, about the impending cancellation of licenses permitting the export of Venezuelan oil and byproducts. In response, Eni has assured continued compliance and ongoing dialogue with the U.S. for possible solutions to maintain critical gas supplies.

Venezuela's President Maduro and Vice President Rodriguez have criticized the sanctions, labeling them an 'economic war,' and emphasized readiness to honor contracts without external authorization. The global energy sector watches closely as companies adapt to new regulatory challenges.

(With inputs from agencies.)