The US Treasury Department has issued a new sanctions waiver as the Trump administration seeks to deepen US control over Venezuela’s oil sector.

General License 52 (GL52), published on Wednesday, authorises US entities to engage in transactions with Venezuelan state oil company PDVSA under conditions that limit Venezuelan sovereignty.

An updated FAQ from the Treasury’s Office of Foreign Assets Control clarified that the exemption allows US companies to engage in activities related to the exportation of Venezuelan-origin oil products, export diluents and inputs to Venezuela as well as enter into new contracts for oil and gas production.

However, in line with recent US licenses, GL52 mandates that all tax, royalty, and dividend payments be made into US Treasury-controlled accounts.

Following the January 3 US military strikes and kidnapping of Venezuelan president Nicolás Maduro, the Trump administration has taken control over Venezuelan crude exports while imposing conditions favorable to Western energy conglomerates.

Thus far, Washington has returned USD 500 million out of an initial January deal worth USD billion. US authorities have also confirmed Venezuelan imports of US-manufactured medicines and medical equipment. Trump officials had vowed that US energy revenues could only be used for purchases from US suppliers and that Caracas would need to submit a “budget request” to access its funds.

The White House issued GL52 amid soaring energy prices caused by the US and Israeli war against Iran. Tehran has responded to massive bombings by targeting US military assets in the region and closing the strategic Strait of Hormuz.

Last week, the US Treasury amended licenses to allow US imports of fertilizers from Venezuela, as well as repair works in the South American country’s electric grid. Venezuela’s electrical infrastructure remains in a precarious state after years of US sanctions, and expanded power capacity is a precondition for recovery of the oil industry.

Despite the broadened waivers for corporations hand-picked by the White House to engage with Venezuela, PDVSA and its subsidiaries remain under financial sanctions, while third-country firms risk secondary sanctions should they enter into agreements without a US Treasury special license.

In late January, Venezuelan authorities approved a pro-business overhaul of the country’s Hydrocarbon Law, granting private companies reduced fiscal responsibilities, increased control over production and exports, and the possibility of taking disputes to international arbitration bodies.