U.S. to Redirect Venezuelan Oil Royalties Into a Treasury-Controlled Fund

Energy companies that want to produce crude oil in Venezuela will be paying local taxes and fees to the Venezuelan government, but royalty payments and federal taxes will go into a fund managed by the United States, the Treasury Department has said. Citing a Frequently Asked Questions section yet to be published on the Treasury’s website, Reuters said the new tax regime follows the issuance of two so-called general licenses for operations in Venezuela. These licenses essentially amount to sanction relief, the first one concerning the export,…