Russian Oil Firm Exits Venezuela as U.S. Tanker Blockade Tightens Pressure on Maduro

Russian oil company Petrolera Cyprus Limited (PCL), formerly a subsidiary of Rosneft, has announced it will end its operations in Venezuela, citing the combined impact of international sanctions and financial restrictions on Russia-linked energy entities.

The decision comes as the United States intensifies pressure on Nicolás Maduro's government through a blockade targeting sanctioned oil tankers entering and leaving Venezuelan waters.

In a notice circulated to employees and published by investigative journalist Roberto Deniz, PCL said it faces a "structural incapacity" that prevents it from sustaining operations in Venezuela.

"As a direct consequence of the combined impact of international sanctions and the financial restrictions imposed on the energy sector and entities controlled by the Russian state, PCL has been forced to proceed with the termination of its labor relations," the document states.

The company's legal representative, Andrey Shavkun, said the decision was beyond the control of either party and stemmed from conditions that make continued operations unviable. According to the notice, employees' last working day will be Dec. 23, when the company will begin the legal process to pay severance, accrued benefits and other compensation in accordance with Venezuela's Organic Labor Law (LOTTT).

PCL said it would fully honor workers' rights and that the process would take place under the supervision of the labor ministry.

PCL said the sanctions have created an "overvening structural incapacity" that prevents the company from maintaining both its operations and employment relationships in the country. The firm said it had prepared termination and settlement agreements for affected workers and acknowledged their "dedication and professional performance," while expressing regret that circumstances outside its control led to the closures.

PCL began operating in Venezuela as part of efforts by Russian-linked companies to find alternative markets following sanctions imposed by the United States and the European Union over Russia's war in Ukraine, as NTN24 reports. Its exit adds to signs of strain on Venezuela's oil sector as Washington steps up enforcement against sanctioned shipping.

On Wednesday, Maduro claimed Venezuela's crude exports continue "normally" despite U.S. President Donald Trump's announcement of a blockade on sanctioned oil tankers. Trump first imposed an embargo on Venezuelan oil during his first term in 2019, part of a broader sanctions campaign aimed at pressuring the Maduro government.

The company's withdrawal coincides with a broader U.S. push against sanctioned oil transport. On Thursday, the U.S. Treasury Department announced sanctions on 29 vessels and their managing companies linked to what it described as Iran's "shadow fleet," which Washington says is used to move sanctioned oil through fraudulent shipping practices. Treasury officials said the measures are intended to deny sanctioned governments revenue from oil sales.