In the first two months of 2025, Spain’s imports of Venezuelan crude oil increased by approximately 59% compared to the same period in 2024. Data from Spain’s energy and environment ministry’s branch, Cores, revealed that Spain imported 449,000 tons of Venezuelan crude in January and February 2025, up from 283,000 tons during the same months in 2024.
Repsol’s Role and U.S. Sanctions
Spanish energy company Repsol has been pivotal in this surge, importing Venezuelan oil under a debt repayment agreement with Venezuela’s state-owned PDVSA. However, the U.S. government has notified Repsol that its license to export Venezuelan oil will be revoked by May 27, 2025, as part of broader sanctions aimed at increasing pressure on President Nicolás Maduro’s regime.
Repsol’s significant exposure to Venezuelan operations has raised concerns about potential financial impacts. The company has invested heavily in Venezuela, with its exposure estimated at €504 million. Following the U.S. decision, Repsol’s stock opened with a 2.5% drop, reflecting market apprehensions regarding the company’s future operations in Venezuela.
Impact on Spanish Refineries
The decision also has implications for Spanish refineries such as Petronor, owned by Repsol. These refineries have benefited from Venezuelan crude, and any disruption could affect their operations. Petronor’s refinery in Muskiz, for instance, might be impacted by the cessation of Venezuelan oil imports.
Broader Geopolitical and Economic Implications
The U.S. sanctions and the subsequent reduction in Venezuelan oil exports have broader geopolitical and economic implications. The sanctions aim to pressure the Maduro regime by cutting off a significant source of revenue. However, countries like China and Russia continue to engage with Venezuela, providing alternative markets and support. This complex web of international relations underscores the challenges in addressing Venezuela’s political and economic crises.
Spain’s Strategic Position
Despite these challenges, Spain’s importation of Venezuelan oil has reached levels not seen since 2015. This increase is partly due to Spain’s exemption from certain U.S. sanctions, allowing companies like Repsol to continue importing Venezuelan crude. However, with the revocation of Repsol’s license, Spain’s position may become more precarious, potentially affecting its energy supply and geopolitical relations.
