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U.S. envoy says Venezuela is producing more oil after sanctions enforcement but warns of legal and corruption risks
Summary
Secretary Wright described recent U.S. engagement with Venezuela as "constructive," saying sanctions enforcement and a U.S.-led quarantine increased leverage and that Venezuelan production has risen around 200,000 barrels per day; he also noted a rewritten hydrocarbon law with remaining discretionary terms that could enable corruption and complicate investor arbitration rights.
Secretary Wright described his recent trip to Venezuela as a strategic moment that has produced early signs of increased oil output and constructive dialogue with interim authorities.
"An actual quarantine that changed the US leverage to drive Venezuela towards improved behavior," he said, adding that Venezuelans he encountered expressed gratitude for engagement and that oil production is already up about 200,000 barrels per day.
He said Venezuelan authorities quickly rewrote a hydrocarbon law and invited feedback from U.S. officials and industry. "The law is much improved from where they were before but still had some concerns for me about the road to international arbitration," he said, warning that broad discretionary terms in the law could open avenues for corruption and complicate investor protections.
Secretary Wright described U.S. leverage over oil funds as a tool to encourage institutional reforms such as strengthening courts, adjusting labor laws and improving rule of law ahead of an eventual election. He framed the approach as practical diplomacy aimed at stabilizing production and curbing illicit flows of drugs, guns and gang activity that have affected the region.
He did not announce new sanctions, legislation, or firm timelines for further action; details about the new Venezuelan hydrocarbon law and its arbitration provisions were not provided in full during the briefing.
