BERLIN: Germany will provide 100 million euros ($111 million) in aid to help Ukraine through the coming winter as it weathers Russian attacks on its energy infrastructure, the foreign ministry said Tuesday.
“Ukraine is facing another winter of war and Putin is waging a brutal war of cold,” the ministry wrote on X, formerly Twitter.
“Russia is deliberately attacking Ukraine’s heat and energy supply. This is why Germany is providing a further 100 million euros in winter aid for the (Ukrainian) energy supply.”
Moscow has pounded Ukraine’s energy network throughout the two-and-a-half year war, destroying swathes of the country’s infrastructure and causing severe power shortages and blackouts.
Russian forces have recently shifted their focus from shelling energy distribution networks to targeting energy production facilities, which are much more costly and take years to repair or rebuild.
Moscow is also targeting the country’s energy reserves.
Ukrainian Prime Minister Denys Shmygal last week laid out plans to repair and protect the country’s power system ahead of the winter, including reinforcing facilities against drone attacks and impacts from missile fragments.
Shmygal said all hospitals and more than 80 percent of schools across the country were equipped with generators, but there was still “an urgent need for another 1,800 high-capacity generators.”
Ukrainian President Volodymyr Zelensky said in June that Russian strikes on Ukraine’s energy facilities had destroyed half of its electricity generation capacity since last winter.
In early September, the EU announced 40 million euros in humanitarian aid for Ukraine to help with repair work, electricity, heating and housing ahead of the coming winter.
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Germany pledges winter aid package for Ukraine
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Germany pledges winter aid package for Ukraine
- Moscow has pounded Ukraine’s energy network throughout the two-and-a-half year war
- Moscow is also targeting the country’s energy reserves
US lifts some Venezuela sanctions to ease oil sales
- Broad US license eases some sanctions on Venezuelan oil
- Does not ease measures on production of Venezuelan crude
WASHINGTON: The administration of President Donald Trump lifted some sanctions on Venezuela’s oil industry on Thursday to make it easier for US companies to sell its crude oil, and said more restrictions on the country would be lifted soon.
The move by the Treasury’s Office of Foreign Assets Control authorizes US companies to buy, sell, transport, store and refine Venezuelan crude oil, but does not lift existing US sanctions on production.
A White House official said the measure “would help flow existing product” from Venezuela and that there will soon be more announcements on the easing of sanctions.
Trump has said the United States intends to control Venezuela’s oil sales and revenues indefinitely since US forces seized the country’s leader Nicolas Maduro in a raid on the capital Caracas on January 3.
He has said he also wants US oil companies to eventually invest $100 billion dollars to restore the OPEC-member nation’s production to its historic peaks following years of underinvestment and mismanagement.
In the meantime, Washington and Caracas have already agreed an initial deal to sell 50 million barrels of Venezuelan crude oil, with European trading houses Vitol and Trafigura marketing the supply.
Treasury’s new authorization, known as a general license, opens up Venezuela oil trade to additional companies, provided they are from the United States.
It allows transactions involving the government of Venezuela and state oil company PDVSA related to “the lifting, exportation, reexportation, sale, resale, supply, storage, marketing, purchase, delivery, or transportation of Venezuelan-origin oil, including the refining of such oil, by an established US entity.”
It specifically excludes firms and individuals from rivals like China, Iran, North Korea, Cuba and Russia.
During President Donald Trump’s first administration, Treasury designated Venezuela’s entire energy industry as subject to US sanctions in 2019 after Maduro’s first re-election, which Washington did not recognize.
The new license does not authorize any payment terms that are not commercially reasonable, involve debt swaps or payments in gold, or are denominated in digital currency.
America first
Oil producers Chevron, Repsol and ENI, refiner Reliance Industries, and some US oil service providers had sought licenses in recent weeks to expand output or exports from the OPEC member.
Expanding production in the country would require additional US authorizations.
Jeremy Paner, a lawyer at Hughes Hubbard & Reed and a former OFAC sanctions investigator, said the authorization is broad in the sense that it opens up many operations including refining, transportation and “lifting” of Venezuelan oil.
But he said the scope is narrow in that it only applies to US companies.
Kevin Book, an analyst at ClearView Energy Partners, said the authorization could provide clarity for US companies while maintaining the previous standard of case-by-case review for non-US entities.
“In short, it appears to offer ‘America First, Others Ask’ sanctions relief.”
The large number of individual requests to the US government had delayed progress on plans to expand exports and get investment moving quickly into Venezuela, two sources said this week.
The new OFAC license, meanwhile, came as lawmakers in Venezuela on Thursday approved a sweetened reform of the country’s main oil law that is expected to grant autonomy to private producers in joint ventures or under new contracts to operate their projects and commercialize the output.
It also formalizes an oil production-sharing model first introduced by Maduro and negotiated with little-known energy firms in recent years.
Francisco Monaldi, director of the Latin American Energy Program at Rice University’s Baker Institute in Houston, said he wondered if the exclusion of Russian and Chinese entities would make it hard for PDVSA to operate or market oil from those ventures. Ventures with those countries produce about 22 percent of the oil, he said.
“If they cannot export the oil coming from these ventures, that’s a big problem.”
The move by the Treasury’s Office of Foreign Assets Control authorizes US companies to buy, sell, transport, store and refine Venezuelan crude oil, but does not lift existing US sanctions on production.
A White House official said the measure “would help flow existing product” from Venezuela and that there will soon be more announcements on the easing of sanctions.
Trump has said the United States intends to control Venezuela’s oil sales and revenues indefinitely since US forces seized the country’s leader Nicolas Maduro in a raid on the capital Caracas on January 3.
He has said he also wants US oil companies to eventually invest $100 billion dollars to restore the OPEC-member nation’s production to its historic peaks following years of underinvestment and mismanagement.
In the meantime, Washington and Caracas have already agreed an initial deal to sell 50 million barrels of Venezuelan crude oil, with European trading houses Vitol and Trafigura marketing the supply.
Treasury’s new authorization, known as a general license, opens up Venezuela oil trade to additional companies, provided they are from the United States.
It allows transactions involving the government of Venezuela and state oil company PDVSA related to “the lifting, exportation, reexportation, sale, resale, supply, storage, marketing, purchase, delivery, or transportation of Venezuelan-origin oil, including the refining of such oil, by an established US entity.”
It specifically excludes firms and individuals from rivals like China, Iran, North Korea, Cuba and Russia.
During President Donald Trump’s first administration, Treasury designated Venezuela’s entire energy industry as subject to US sanctions in 2019 after Maduro’s first re-election, which Washington did not recognize.
The new license does not authorize any payment terms that are not commercially reasonable, involve debt swaps or payments in gold, or are denominated in digital currency.
America first
Oil producers Chevron, Repsol and ENI, refiner Reliance Industries, and some US oil service providers had sought licenses in recent weeks to expand output or exports from the OPEC member.
Expanding production in the country would require additional US authorizations.
Jeremy Paner, a lawyer at Hughes Hubbard & Reed and a former OFAC sanctions investigator, said the authorization is broad in the sense that it opens up many operations including refining, transportation and “lifting” of Venezuelan oil.
But he said the scope is narrow in that it only applies to US companies.
Kevin Book, an analyst at ClearView Energy Partners, said the authorization could provide clarity for US companies while maintaining the previous standard of case-by-case review for non-US entities.
“In short, it appears to offer ‘America First, Others Ask’ sanctions relief.”
The large number of individual requests to the US government had delayed progress on plans to expand exports and get investment moving quickly into Venezuela, two sources said this week.
The new OFAC license, meanwhile, came as lawmakers in Venezuela on Thursday approved a sweetened reform of the country’s main oil law that is expected to grant autonomy to private producers in joint ventures or under new contracts to operate their projects and commercialize the output.
It also formalizes an oil production-sharing model first introduced by Maduro and negotiated with little-known energy firms in recent years.
Francisco Monaldi, director of the Latin American Energy Program at Rice University’s Baker Institute in Houston, said he wondered if the exclusion of Russian and Chinese entities would make it hard for PDVSA to operate or market oil from those ventures. Ventures with those countries produce about 22 percent of the oil, he said.
“If they cannot export the oil coming from these ventures, that’s a big problem.”
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