US Approves Venezuelan Fertilizer Exports amid Global Supply Crunch

The administration of U.S. President Donald Trump has authorized Venezuelan firms to export fertilizers and petrochemical products to American companies. 

The decision, announced Friday, comes in the wake of a months-long reduction in global supply chains triggered by the ongoing conflict in Iran and geopolitical tensions affecting the Strait of Hormuz.

The measure also forms part of Washington’s broader effort to gradually reintegrate Venezuela into international energy markets following the U.S.-led arrest of President Nicolás Maduro earlier this year. The administration aims to secure essential ammonia and urea supplies for American farmers ahead of the peak spring planting season, as domestic prices for urea surged nearly 28% since the outbreak of conflict in the Middle East.

U.S. officials said the move will allow American agricultural companies to purchase Venezuelan fertilizers under the supervision of the Office of Foreign Assets Control (OFAC). Companies must deposit payments into frozen foreign accounts, which are then transferred to Venezuela’s central bank, ensuring compliance with existing sanctions while permitting controlled trade.

“The authorization targets a vital input for food production,” said Jeremy Banner, a Washington-based international trade attorney. “It signals a pragmatic approach to stabilizing U.S. agricultural markets without fully lifting sanctions.”

Venezuela possesses significant production capacity through its state-owned company, Pequiven, located in the José industrial complex. Pequiven produces both ammonia and urea and has an annual output potential of 2.7 million tons of ammonia and 3.3 million tons of urea. In 2025, Venezuela exported approximately 400,000 tons of urea to Brazil, with smaller volumes reaching Colombia and Chile.

While analysts caution that reviving these facilities will require substantial investment and time, the decision is seen as a critical step to supplement American fertilizer supply and mitigate disruptions caused by Middle East tensions.