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Eni Confirms US Will No Longer Allow Oil Payments from Venezuela

A view of buildings in the dark due to a power outage, in a neighborhood in Maracaibo, Venezuela, March 16, 2025. REUTERS/Jose Issac Bula Urrutia
A view of buildings in the dark due to a power outage, in a neighborhood in Maracaibo, Venezuela, March 16, 2025. REUTERS/Jose Issac Bula Urrutia
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Eni Confirms US Will No Longer Allow Oil Payments from Venezuela

A view of buildings in the dark due to a power outage, in a neighborhood in Maracaibo, Venezuela, March 16, 2025. REUTERS/Jose Issac Bula Urrutia
A view of buildings in the dark due to a power outage, in a neighborhood in Maracaibo, Venezuela, March 16, 2025. REUTERS/Jose Issac Bula Urrutia

Italy's Eni confirmed on Sunday it was notified by US authorities it would no longer be allowed to be repaid for gas production in Venezuela through oil supplies given by Venezuelan state oil company PDVSA.

Reuters had reported on Saturday that the US government had notified foreign partners of PDVSA, which include Eni, of the imminent cancellation of authorizations that allow them to export Venezuelan oil and byproducts.

“Eni continues its transparent engagement with US authorities on the matter to identify options for ensuring that non-sanctioned gas supplies, essential to the population, can be remunerated by PDVSA,” the Italian energy company said in a statement.

“Eni always operates in full compliance with the international sanctions framework,” it added.

Venezuela's President Nicolas Maduro has criticized the sanctions, saying they amount to an “economic war.”

The companies that had received licenses and comfort letters from Washington also include Spain's Repsol, France's Maurel & Prom, India's Reliance Industries and US Global Oil Terminals.

Venezuela's Vice President Delcy Rodriguez confirmed on Sunday on social media that the government had been informed about the decision to cancel these authorizations.

“We were prepared for this juncture and we're ready to continue to comply with the contracts of these companies,” she wrote, adding that foreign companies do not need a license or authorization from another government in Venezuela.

“We are a trustworthy partner and will continue to comply with the agreements reached with these companies.”

Most companies had already suspended imports of Venezuelan oil following Trump's imposition this week of secondary tariffs on buyers of Venezuelan oil and gas, according to sources and vessel tracking data.

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Japan’s Economy Shrinks as US Tariff Hit Looms 

The Tokyo Dome (L-white roof) and the Tokyo Skytree (back R) are pictured from the high-rise business district of Shinjuku on a hazy day in central Tokyo on May 16, 2025. (AFP)
The Tokyo Dome (L-white roof) and the Tokyo Skytree (back R) are pictured from the high-rise business district of Shinjuku on a hazy day in central Tokyo on May 16, 2025. (AFP)
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Japan’s Economy Shrinks as US Tariff Hit Looms 

The Tokyo Dome (L-white roof) and the Tokyo Skytree (back R) are pictured from the high-rise business district of Shinjuku on a hazy day in central Tokyo on May 16, 2025. (AFP)
The Tokyo Dome (L-white roof) and the Tokyo Skytree (back R) are pictured from the high-rise business district of Shinjuku on a hazy day in central Tokyo on May 16, 2025. (AFP)

Japan's economy shrank for the first time in a year in the March quarter, data showed on Friday, underscoring the fragile nature of its recovery now under threat from US President Donald Trump's trade policies.

The data highlights the challenge policymakers face as steep US tariffs cloud the outlook for the export-heavy economy, particularly for the mainstay automobiles sector.

Real gross domestic product (GDP) contracted an annualized 0.7% in January-March, preliminary government data showed, much bigger than a median market forecast for a 0.2% drop.

It followed a revised 2.4% increase in the previous quarter. On a quarter-on-quarter basis, the economy shrank 0.2% compared with market forecasts for a 0.1% contraction.

Private consumption, which accounts for more than half of Japan's economic output, was flat in the first quarter, compared with market forecasts for a 0.1% gain.

Capital expenditure increased 1.4% compared with market forecasts for a 0.8% gain, the data showed.

External demand, or net exports, shaved 0.8 percentage point off GDP growth, the data showed. Analysts polled by Reuters expected external demand, or shipments minus imports, to have shaved 0.6 point off GDP growth.

A global trade war touched off by Trump's sweeping tariffs has jolted financial markets and complicated the Bank of Japan's decision on when and how far it can push up interest rates.

Having exited a decade-long stimulus last year, the BOJ hiked rates to 0.5% in January and has signaled its readiness to keep hiking borrowing costs if a moderate economic recovery keeps Japan on track to durably hit its 2% inflation target.

But fears of a Trump-induced global slowdown forced the BOJ to sharply cut its growth forecasts at its April 30-May 1 policy meeting, and cast doubt on its view that sustained wage hikes will underpin consumption and the broader economy.

While a de-escalation of US-China trade tensions offered markets and policymakers some relief, there is uncertainty on whether Japan can win exemptions from US tariffs in bilateral trade talks with Washington.

The gloomy GDP data may also pile pressure on Prime Minister Shigeru Ishiba to heed lawmakers' demands to cut tax or compile a fresh stimulus package.