Rubio Defends US-Backed Venezuela Oil Deal, Says Revenue Is Under Treasury Control

October 28, 2026 | By Semahegn Nigatu

US Secretary of State Marco Rubio has defended Washington’s oil agreement with Venezuela’s interim authorities, saying it is attracting private investment to the country’s underfunded energy sector, while acknowledging that he could not provide an updated figure for oil revenues processed under US oversight.

Speaking to reporters on October 26, Rubio said Venezuelan crude was now being sold at market prices, with proceeds deposited into a Treasury-controlled account and disbursed through a process administered under US Treasury licences.

“I don’t know the exact amount that’s been processed through that account,” Rubio said, adding that he would seek an updated figure.

Rubio said Venezuela had previously been forced to sell oil at steep discounts because of US sanctions. He also alleged that some oil supplied to China had been credited against Venezuelan debt rather than paid for in cash.

Under the current arrangement, some Venezuelan heavy crude is being refined in the southern United States, while India is increasing its intake, Rubio said.

The secretary defended the agreement amid criticism from Venezuelan opposition leader María Corina Machado, who has challenged aspects of the deal and its association with figures linked to the country’s previous political establishment.

Rubio said the agreement covered only part of Venezuela’s oil industry and would allow a private company operating under a licence to raise capital and expand production. He said the US government was not investing its own money in the company, but that Washington’s involvement had helped provide the confidence needed to attract financing.

He argued that increased investment could restore production capacity after years of what he described as underinvestment, sanctions and corruption. The agreement would also give the United States access to Venezuelan oil reserves in times of crisis, he said.

Rubio maintained that Machado’s objections to the oil agreement were separate from the question of restoring democracy in Venezuela, saying she did not have to support the deal.

Rubio also said Washington had urged Venezuela’s interim authorities weeks earlier to allow Machado to return to her country without interference.

He said the authorities had assured the United States that she could enter through the airport, and that this information had been communicated to her team. Rubio said any difficulties she encountered along the way were unrelated to Washington.

Machado returned to Venezuela after spending months abroad. Her return comes as the Trump administration seeks political and institutional reforms under interim President Delcy Rodríguez.

Rubio said Washington was judging Rodríguez’s cooperation by her government’s actions rather than its public statements. He cited what he described as steps to reduce Iranian and Cuban influence, pursue criminal organisations, extradite individuals wanted by US authorities and advance political reforms.

The US secretary said Washington wanted a new Supreme Tribunal of Justice, a new National Electoral Council and a new electoral process. He did not provide a firm date for elections.

The political transition remains contested, with Machado having criticised the oil agreement and the role of figures associated with the previous government. Rubio said the agreement was a commercial and economic arrangement that should be considered separately from the process of holding elections.

Source: FSX Business News