WILLEMSTAD – U.S. President Donald Trump’s decision to reinstate oil sanctions on Venezuela and impose a 25% tariff on countries purchasing Venezuelan oil and gas could have potential repercussions for Curaçao. However, according to Patrick Newton, director of state-owned company 2Bays (formerly Refineria di Kòrsou, RdK), the island may not be directly affected by the new measures. 

Newton said that he doesn’t believe the Washington’s new sanctions and tariffs would impact Curaçao. “We do not purchase Venezuelan crude oil. 2Bays has a ‘crude for debt’ settlement agreement with PdVSA, and Global is a private company, not a country.” 

In December 2023, Curaçao and Venezuela reached a settlement agreement following years of legal disputes after the departure of Venezuela’s state oil company, PdVSA. Under this deal, Venezuela committed to supplying oil worth $450 million over ten years to settle its outstanding debt with Curaçao. 

Newton emphasized that he believes this agreement falls outside the scope of Trump’s sanctions and tariffs. He also referenced Global Oil Management Group (GOMG), which intends to process asphalt at the Isla Refinery in Schottegat using Venezuelan oil. “Global is a private company, not a country,” he reiterated. 

International media reported yesterday that Trump’s 25% tariff on Venezuelan oil purchases will take effect on April 2. The announcement led to an immediate rise in global oil prices. Notably, China remains the largest importer of Venezuelan crude. 

Trump stated that any country purchasing Venezuelan oil or gas will be subject to a 25% tariff on trade transactions with the United States. The policy aims to pressure the Venezuelan government while also impacting key global energy markets.