H.R. 328: Revoke Exemptions for Venezuelan Oil to Curb Autocratic Repression Act of 2025

This bill, titled the Revoke Exemptions for Venezuelan Oil to Curb Autocratic Repression Act of 2025, aims to stop any investments by U.S. individuals and companies in Venezuela's energy sector. The motivation behind this bill is based on a presidential election in Venezuela that took place on July 28, 2024, where the opposition candidate, Edmundo Gonzalez, reportedly received over two-thirds of the votes. However, the current government led by Nicolas Maduro has rejected the election results, leading to widespread abuses against citizens who participated peacefully in the election process.

Prohibition on Investment

The bill enforces a prohibition on any investment transactions related to the energy sector of Venezuela, targeting specifically:

• Any actions by U.S. persons or entities controlled by them that would involve investing, trading, or conducting operations within the Venezuelan energy sector.
• Any kind of support, including goods, services, or financing to:
  • Petroleos de Venezuela, S.A. (PDVSA) or its subsidiaries, representatives, or related companies.
  • The Maduro regime or any future undemocratic government in Venezuela.
• Any attempts to evade these prohibitions.

Implementation and Enforcement

The U.S. Secretary of the Treasury, in consultation with the Secretary of State, will be responsible for implementing the provisions of this bill, which includes creating any necessary regulations. The Secretary is also granted authority under the International Emergency Economic Powers Act to enforce these restrictions.

Penalties for Violations

Individuals or entities that violate the prohibition could face penalties as prescribed under existing laws, similar to those for unlawful acts under the International Emergency Economic Powers Act.

Duration and Conditions of Prohibition

The restrictions imposed by this bill will remain in effect until either:

• The involved regime in Venezuela acknowledges Gonzalez's electoral victory and transfers power to a legitimate government, or
• By December 31, 2027, whichever comes first.

Waiver Authority

The President has the authority to waive the prohibitions on a case-by-case basis for periods not exceeding 90 days if it is determined to be essential for U.S. national security. Such waivers can be renewed, and detailed reports must be submitted justifying each waiver.

Definitions

The bill also defines "United States person" to include:

• U.S. citizens or lawful permanent residents.
• Entities organized under U.S. laws.
• Any person currently located in the United States.

Relevant Companies

• PDVSA: As the national oil company of Venezuela, any investment or operation by U.S. entities in relation to PDVSA would be directly impacted by the prohibitions outlined in this bill. Since it is the key player in Venezuela's energy sector, the restrictions would greatly affect its ability to operate and finance projects.