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Venezuela to Accelerate Cryptocurrency Shift as US Sanctions Return

Encouraged by US licenses allowing sales, oil exports reached some 900,000 barrels per day in March, the highest in four years. Reuters
Encouraged by US licenses allowing sales, oil exports reached some 900,000 barrels per day in March, the highest in four years. Reuters
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Venezuela to Accelerate Cryptocurrency Shift as US Sanctions Return

Encouraged by US licenses allowing sales, oil exports reached some 900,000 barrels per day in March, the highest in four years. Reuters
Encouraged by US licenses allowing sales, oil exports reached some 900,000 barrels per day in March, the highest in four years. Reuters

Venezuela's state-run oil company PDVSA plans to increase digital currency usage in its crude and fuel exports as the US reimposes oil sanctions on the country, three people familiar with the plan said.
The US Treasury Department last week gave PDVSA's customers and providers until May 31 to wind down transactions under a general license it did not renew due to a lack of electoral reforms, Reuters reported. The move will make it more difficult for the country to increase oil output and exports as companies will have to wait for individual US authorizations to do business with Venezuela.
PDVSA since last year had been slowly moving oil sales to USDT, a digital currency also known as Tether whose value is pegged to the US dollar and designed to maintain a stable value. The return of oil sanctions is speeding up the shift, a move to reduce the risk of sale proceeds getting frozen in foreign bank accounts due to the measures, the people said.
"We have different currencies, according to what is stated in contracts," Venezuelan oil minister Pedro Tellechea told Reuters last week, adding that in some contracts digital currencies might be the preferred payment method.
The US dollar is the preferred currency for transactions in the global oil market. Even though they are emerging in some countries, payments in cryptocurrency are not frequent.
Tether said in an email it respects the US Treasury's list of sanctioned entities and "is committed to working to ensure sanction addresses are frozen promptly."
Last year, PDVSA was rocked by a corruption scandal after the discovery of some $21 billion in unaccounted receivables for oil exports in recent years, partially related to prior transactions involving other cryptocurrencies.
The nation's oil exports have increased under Tellechea, who took over Venezuela's oil ministry following the scandal. Encouraged by US licenses allowing sales, exports reached some 900,000 barrels per day in March, the highest in four years.
SLOWLY BUT SURELY
By the end of the first quarter, PDVSA had moved many spot oil deals not involving swaps to a contract model demanding prepayment for half of each cargo's value in USDT.
PDVSA also is requiring any new customer applying to conduct oil transactions to hold cryptocurrency in a digital wallet. The requirement has been enforced even in some old contracts that do not specifically state the use of USDT, one of the people said.
In October, when Washington issued the six-month license that allowed trading houses and former PDVSA customers to resume business with Venezuela, most of them resorted to intermediaries to meet the digital transaction requirements.
"USDT transactions, as PDVSA is demanding them to be, don't pass any trader's compliance department, so the only way to make it work is working with an intermediary," one trader said, referring to how unusual it still is to pay for oil in digital currencies.
PDVSA has relied on middlemen for its own oil sales, especially to China, since the US in 2020 imposed secondary sanctions on Venezuela, disrupting its relationship with large trading partners.
LESS CASH
Increasingly relying on middlemen for transactions could help PDVSA skirt sanctions, but will mean a smaller portion of oil proceeds will end up in its pockets.
Minister Tellechea last week said the country expects to continue signing contracts and crude and gas project expansions during the 45-day wind down period set by the US, and will ask potential clients to request specific licenses after that.
Oil analysts expect that even if Washington promptly issues individual authorizations, Venezuela's oil output, exports and revenue will soon hit a ceiling.
Tellechea rejected that view, saying PDVSA has "a big strength in trading," and is prepared commercially to address the return of Washington's sanctions.

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Business

Saudi Aramco Weighs Global Oil Storage Facilities to Boost Energy Security

The Public Investment Fund governor addresses attendees at the summit in Rome, Italy. (Asharq Al-Awsat)
The Public Investment Fund governor addresses attendees at the summit in Rome, Italy. (Asharq Al-Awsat)
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Saudi Aramco Weighs Global Oil Storage Facilities to Boost Energy Security

The Public Investment Fund governor addresses attendees at the summit in Rome, Italy. (Asharq Al-Awsat)
The Public Investment Fund governor addresses attendees at the summit in Rome, Italy. (Asharq Al-Awsat)

Saudi Arabia laid out a new strategy in Rome to strengthen global supply chains and build a broader partnership model with Europe, seeking to move beyond current geopolitical pressures and deepen economic ties across regions.

Public Investment Fund Governor and Saudi Aramco Chairman Yasir Al-Rumayyan said Aramco was studying plans to establish additional oil storage facilities in strategic locations worldwide to strengthen energy security.

At the same time, he said the PIF was preparing about 140 new investment opportunities for European partners worth 10.4 billion euros by 2030, after its investments helped support European GDP by $80.6 billion and create 160,000 jobs.

The targets came as Riyadh activated 41 contingency and business continuity plans to address the fallout from the closure of the Strait of Hormuz and Bab al-Mandab and secure shipping and air traffic.

Italian Prime Minister Giorgia Meloni called for European-Gulf relations to move toward an untapped strategic integration linking three continents, while Saudi Arabia’s tourism sector continued to show resilience, supported by domestic and religious tourism despite regional pressures.

The remarks came during al-Rumayyan’s participation in a high-level panel at the FII PRIORITY Europe 2026 summit, affiliated with the Future Investment Initiative Institute, held in the Italian capital.

Al-Rumayyan said Saudi Aramco already owns vital oil storage facilities in several major global markets, particularly in Asia, South Korea and Japan. He said the company was now seriously studying additional storage facilities in different regions to help stabilize markets and protect supply lines from sudden shocks.

The Aramco chairman said recent crises had underscored the importance of long-term planning. The company, he said, maintained continuity in more than 99% of its operations during recent periods of tension and restarted facilities previously hit by missile attacks in record time, reflecting the efficiency of its infrastructure and the resilience of its supply chains.

On partnership with Europe, al-Rumayyan said the PIF planned to offer about 140 new investment opportunities to expand cooperation with European partners. The opportunities linked to joint projects are worth a total of 10.4 billion euros ($11.97 billion) and extend through 2030, he said.

He also pointed to regulatory and legal challenges that have slowed the expansion of Saudi investments in Europe and affected major companies such as Aramco, SABIC and the sovereign wealth fund.

Some rules, he said, not only limit new capital flows but also threaten the sustainability of existing projects. Still, he said European policymakers and regulators were aware of the obstacles, raising hopes for better solutions in the coming period.

On the wider energy transition, al-Rumayyan called for “energy realism,” saying new and renewable energy sources were an important strategic addition but not a full replacement for oil and gas.

Vital industries such as petrochemicals, fertilizers and food production still depend on fossil fuels, he said, while global energy demand is rising with the rapid expansion of artificial intelligence applications and data centers.

Europe and the Gulf

Meloni said the next phase required Europe and Gulf states to move toward a deeper relationship based on strategic partnership and economic integration. The two sides, she said, have major potential to link three continents and expand trade, energy flows and investment.

Speaking at the FII PRIORITY Europe 2026 summit in Rome on Thursday, Meloni said Europe needed to strengthen its independence and industrial and technological capabilities, while cooperation with the Gulf offered an opportunity to build a shared path that supports global stability and growth.

She said strengthening cooperation between Europe and Gulf states was a priority for the next phase, adding that the partnership had significant untapped potential and could become a decisive bridge between West and East, and between Africa and Asia.

Meloni said Italy intended to play a leading role in that effort as a gateway to Europe and a natural hub for energy, logistics and trade in the Mediterranean.

Europe and the Gulf, she said, could together offer a strategic cooperation model that can be replicated and expanded, turning energy, trade, infrastructure and connectivity networks into sources of stability rather than vulnerability.

Treaties of Rome

Meloni said the choice of Rome for the summit carried special significance. The city hosted the signing of the Treaties of Rome in 1957, which laid the foundations of today’s European Union. As the 70th anniversary of those treaties approaches, she said Europeans should reflect on the Europe they want and need to build.

She said that vision was aligned with the Future Investment Initiative’s role as a global agenda bringing together ideas, capital, technology and practical projects to build the future. She voiced hope that Rome would become the initiative’s permanent European stop, where results are measured, progress is reviewed and new priorities are set jointly.

Hormuz crisis

Saudi Transport and Logistics Services Minister Saleh al-Jasser said the current Strait of Hormuz crisis had required countermeasures, prompting Riyadh to activate 41 business continuity and emergency plans that had already been prepared and tested. That readiness, he said, allowed the kingdom to respond quickly from the earliest days of the crisis.

Speaking at the summit, al-Jasser said the region was facing difficult conditions, but Saudi Arabia was ready to address the developments. He cited a 2013 experience when the kingdom faced challenges in the Red Sea and had to redirect its trade eastward toward the Arabian Gulf, while protecting trade flows and preserving supply chain resilience.

Al-Jasser said the kingdom helped manage disrupted flights and evacuate passengers who had landed at different airports. It also rerouted ships bound for ports in the Eastern Province to ports in the western region.

The minister said the challenges were not limited to the closure of the Strait of Hormuz but also included ongoing difficulties in Bab al-Mandeb.

Some international shipping companies, he said, were hesitant to cross, requiring coordination, information sharing and a greater role for the private sector. Since the start of the current crisis, more than 23 new shipping services have been launched in coordination with the private sector, he said.

Saudi tourism developments

Saudi Tourism Minister Ahmed al-Khateeb said domestic tourism represents between 60% and 65% of total tourism activity in the kingdom, making it a key source of balance and stability during periods of disruption to international travel.

Strong local demand, he said, helped keep Saudi Arabia’s tourism sector moving, particularly during seasons and holidays when domestic destinations reach full bookings. That demand strengthened the sector’s ability to withstand external shocks.

Al-Khateeb said the global and Saudi tourism sectors had faced pressure in recent months from geopolitical tensions, higher travel costs and fluctuations in air traffic. Even so, he said the system had shown an ability to recover and maintain relative stability.

Global tourism has fully recovered from the fallout of the coronavirus pandemic, he said, with the number of travelers worldwide reaching about 1.5 billion last year and total spending hitting about $2.2 trillion. Yet travelers still represent only about 20% of the world’s population, he said, pointing to significant room for growth.

In Saudi Arabia, he said, the kingdom received about 123 million visitors in the previous year. Tourism now accounts for 5.2% of GDP, with a strategic target to raise that share to 10%.

Al-Khateeb said the sector has created about 1 million jobs since the launch of tourism transformation programs, driven by expanding investment in destinations, infrastructure and related services.

“The start of this year was strong for Saudi Arabia and Gulf states, before tourism movement was affected by regional tensions, higher fuel costs and the cancellation of a number of flights, which affected demand levels and travel costs,” he said.

Despite those pressures, he said the kingdom ended the first five months of the year with positive performance and only a slight decline of about 5% to 6% compared with the same period last year. He described that as a “resilient” performance under global conditions.

Al-Khateeb said religious tourism remains a core pillar of stability, as Saudi Arabia hosts the Two Holy Mosques, ensuring a steady flow of visitors throughout the year for Hajj and Umrah.

Former president of the Future Investment Initiative Institute Richard Attias said Europe was at a turning point as the world undergoes rapid and unprecedented change.

According to Attias, artificial intelligence is reshaping industries, capital flows are shifting, energy systems are being redrawn, supply chains are being restructured, geopolitical balances are changing and new global centers are emerging at an exceptional pace.

Business

Kuwait Says All Force Majeure Issued During War Lifted

This photograph shows the conjunction of Jupiter and Venus over the skyline of Kuwait City on June 9, 2026. (Photo by YASSER AL-ZAYYAT / AFP)
This photograph shows the conjunction of Jupiter and Venus over the skyline of Kuwait City on June 9, 2026. (Photo by YASSER AL-ZAYYAT / AFP)
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Kuwait Says All Force Majeure Issued During War Lifted

This photograph shows the conjunction of Jupiter and Venus over the skyline of Kuwait City on June 9, 2026. (Photo by YASSER AL-ZAYYAT / AFP)
This photograph shows the conjunction of Jupiter and Venus over the skyline of Kuwait City on June 9, 2026. (Photo by YASSER AL-ZAYYAT / AFP)

Kuwait's Petroleum Corporation said on Thursday that all force majeure notices issued during the war have been lifted ⁠with immediate effect, ⁠government communication center reported on X.

Kuwait's oil ⁠production would increase to 2 million barrels per day within a week coinciding with the opening of Strait ⁠of Hormuz ⁠and resumption of commercial shipping, KPC added.

Business

Syrian Petroleum Company to Asharq Al-Awsat: Syria to Receive 56% Share of US Gas Development Deal

During the signing of the agreement between the Syrian Petroleum Company and US firms ConocoPhillips and Novaterra Energy. (SANA)
During the signing of the agreement between the Syrian Petroleum Company and US firms ConocoPhillips and Novaterra Energy. (SANA)
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Syrian Petroleum Company to Asharq Al-Awsat: Syria to Receive 56% Share of US Gas Development Deal

During the signing of the agreement between the Syrian Petroleum Company and US firms ConocoPhillips and Novaterra Energy. (SANA)
During the signing of the agreement between the Syrian Petroleum Company and US firms ConocoPhillips and Novaterra Energy. (SANA)

Mohammad Nour Al-Ahdab, Director of Media Relations at the state-owned Syrian Petroleum Company (SPC), revealed on Thursday that under the contract signed with US companies ConocoPhillips and Novaterra Energy to develop and increase production from Syria’s gas fields, the Syrian side will receive a 56 percent share under the agreement, while the two investing companies will hold the remaining 44 percent.

Al-Ahdab told Asharq Al-Awsat that the arrangement is “favorable for Syria, particularly since gas-development contracts are typically structured close to a 50-50 split because of the scale of investment, technical and operational risks, and the nature of rehabilitation and production activities.”

He added: “What matters most to us is that the contract was designed to safeguard the national interest and deliver clear economic and technical returns through increased domestic production, stronger energy security, a gradual reduction in imports, and the transfer of expertise and technology to Syrian personnel.”

In what represents the most significant strategic breakthrough in economic and political relations between Damascus and Washington since the fall of the regime of Bashar al-Assad in late 2024, SPC on Tuesday signed a major implementation agreement with ConocoPhillips and Novaterra Energy to develop gas fields and increase production.

The move marks the country’s first major US energy deal in years and serves as a tangible indication of the beginning of a phase of “full-scale implementation,” supported by US President Donald Trump’s decision to lift sanctions in July 2025.

The contract follows earlier US initiatives launched at the beginning of 2026 through memoranda of understanding signed by other companies, including Chevron for offshore exploration and HKN Energy for the onshore Rmeilan fields.

However, the ConocoPhillips agreement stands out as the largest binding implementation contract aimed at developing the domestic gas sector, backed by Gulf and European partnerships and financing arrangements intended to help end the country’s severe energy crisis.

Al-Ahdab described the agreement as an important milestone in the rehabilitation and development of Syria’s gas sector because it moves cooperation with international partners beyond the memorandum-of-understanding stage and into formal contractual commitments and practical implementation.

“The importance of the agreement stems from several factors,” he said. “First, it targets the development of a number of existing gas fields and an increase in their production, which will support the energy system, particularly gas supplies needed for the electricity sector and other vital industries. Second, it opens the door to the introduction of international expertise and technologies in assessment, rehabilitation, processing, and operational-efficiency enhancement.”

According to Al-Ahdab, the agreement also reflects a clear commitment by SPC and the Ministry of Energy to building strategic partnerships capable of accelerating the recovery of the energy sector, gradually reducing reliance on imported gas, and preserving the role of Syrian professionals by empowering them through training and knowledge transfer.

“For us, this is not merely a production agreement,” he added. “It is part of a broader vision to rebuild the energy sector on sustainable technical and economic foundations in a manner that serves the national economy and meets citizens’ needs over the medium and long term.”

Al-Ahdab said the contract includes implementation phases related to the development of existing fields, the rehabilitation of operational infrastructure, and the gradual increase of gas production.

“There are also subsequent phases linked to additional development and exploration activities, subject to technical and contractual approvals agreed upon by the parties,” he said.

He added that the duration of the contract “is tied to the nature of the technical work and the various stages of implementation and production. Details that can be officially disclosed will be announced through the approved channels.”