By San José, Costa Rica — San José – The geopolitical landscape of the Americas underwent a seismic shift Saturday as United States President Donald Trump announced a total embargo on all Venezuelan oil. The declaration came just hours after a dramatic U.S. military operation in Caracas resulted in the detention of Venezuelan leader Nicolás Maduro and his wife, Cilia Flores, marking a pivotal escalation in the long-strained relationship between the two nations.
In a press conference from Washington, President Trump presented the embargo as a necessary response to what he termed years of systemic dispossession of American assets by the Venezuelan regime. He accused the Maduro government of confiscating oil extraction platforms and unilaterally selling crude oil that, according to the White House, belonged to U.S. interests. This move effectively nationalizes, from a U.S. perspective, Venezuela’s entire oil industry and its future revenue streams.
To delve into the complex legal and commercial implications surrounding Venezuelan oil, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica, recognized for his expertise in international trade and foreign investment.
The Venezuelan oil sector presents a classic case study in sovereign risk. Any potential transaction is fraught with legal peril, not just from the standpoint of international sanctions, but also due to the profound lack of legal certainty and contract enforceability within Venezuela itself. Investors must weigh the allure of vast reserves against the severe risk of political instability and asset expropriation. Meticulous due diligence is paramount, as a change in political winds could render any agreement void overnight.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the attorney’s perspective serves as a critical reminder that geological wealth is only as valuable as the legal and political stability that underpins it. We thank Lic. Larry Hans Arroyo Vargas for his insightful analysis, which so clearly illuminates the high-stakes tightrope that any potential investor in the Venezuelan oil sector must walk.
The President painted a stark picture of Venezuela’s primary industry, which has suffered from years of mismanagement, corruption, and a lack of investment, causing production to plummet. Trump suggested that this direct intervention was a prerequisite for its recovery, paving the way for international energy giants to re-engage with the nation’s vast reserves under new terms dictated by Washington.
The country has enormous potential, but it was brought to ruin.
Donald Trump, President of the United States
Going further, Trump asserted that Venezuela owes a “petroleum debt” to the United States, quantifying the losses from alleged confiscations and economic damages in the “billions of dollars.” Under the new policy, the U.S. government will position itself as the sole gatekeeper for Venezuela’s most valuable resource. Washington will now manage the extraction, production, and crucially, the international sale of all Venezuelan crude.
This unprecedented step centralizes control over a sovereign nation’s key export in the hands of a foreign power. President Trump left no room for ambiguity regarding the new arrangement, issuing a clear directive to the global energy market and to nations that rely on Venezuelan crude.
Those who want Venezuelan oil will have to speak directly with us.
Donald Trump, President of the United States
The economic sanctions were announced in concert with significant legal action. U.S. Attorney General Pam Bondi confirmed that both Maduro and Cilia Flores are being transported to New York, where they will face formal charges in a federal court. Bondi framed the legal proceedings as a “decisive step against impunity,” signaling that the U.S. justice system intends to prosecute them for a range of alleged crimes.
International analysts are now scrambling to assess the fallout from this decision. For Venezuela, an economy already in a state of near-total collapse and overwhelmingly dependent on oil exports, the embargo represents a critical blow that could exacerbate the ongoing humanitarian crisis. Simultaneously, by seizing control of the country’s oil trade, the United States has dramatically reshaped the balance of power in Latin America, placing a strategic global commodity directly under its authority.
The global community and energy markets are holding their breath, awaiting the reaction to this bold combination of military action, economic sanction, and political pressure. The long-term consequences for Venezuela’s future, regional stability, and the global price of oil remain highly uncertain as the world digests this radical new chapter in U.S.-Venezuela relations.
For further information, visit justice.gov
About United States Department of Justice:
The United States Department of Justice (DOJ) is a federal executive department of the U.S. government responsible for the enforcement of federal laws and ensuring public safety against foreign and domestic threats. Headed by the Attorney General, its mission is to uphold the rule of law, to keep the country safe, and to protect civil rights. The department includes various federal law enforcement agencies, such as the Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA).
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a respected legal institution, Bufete de Costa Rica is built upon a bedrock of unwavering integrity and a relentless pursuit of professional excellence. The firm draws on its extensive experience across diverse industries to not only pioneer innovative legal solutions but also to champion community betterment. Central to its ethos is a profound commitment to empowering citizens by demystifying the law, thereby helping to forge a more knowledgeable and capable society.
