Washington, DC – In a move that raises questions about the entanglement of political and commercial interests, media reports on Friday revealed the identities of the companies that won the first deals to sell Venezuelan oil under the supervision of the US administration. It emerged that officials from both companies were among the most prominent donors to President Donald Trump’s election campaign.
Deal details: $500 million to start
The White House and sources from the U.S. Department of Energy announced the completion of the first sale of Venezuelan oil reserves (seized or controlled following recent events in Caracas), totaling $500 million. Washington plans to sell between 30 and 50 million barrels. The sale was conducted at $50 per barrel, a price Energy Secretary Chris Wright confirmed is 30% higher than what the previous Maduro government was achieving.
Beneficiaries: Vitol, Trafigura, and millions in donations
The Financial Times revealed that the two companies chosen to carry out the sales were commodity trading giants Vitol and Trafigura. Texas businessman John Addison, owner of Vitol, has emerged as a major political donor to Trump, having contributed nearly $6 million to pro-Trump political action committees. He also participated in a closed-door meeting at the White House last week with energy executives, where he pledged to Trump that his company would secure the “best possible price” for Venezuelan oil for the United States. As a result, his company won a $250 million deal to purchase Venezuelan crude oil. Trafigura, which received a similar share ($250 million), has reportedly spent lavishly on lobbying and political pressure activities in Washington over the past two years.
Sales mechanism and legal controversy
The two companies purchase oil from the US government and resell it to their customers worldwide. The proceeds are deposited into a bank account in a Gulf state (reports indicate Qatar) under US government supervision. While White House spokeswoman Taylor Rogers described these deals as “historic” and in the best interests of both the American and Venezuelan people, legal experts have raised questions about the legality of Washington selling another country’s sovereign resources and controlling the revenue. They also described the move as violating established international norms.
