Venezuela was ready to give Washington a stake in its oil sector to de-escalate tensions, sources told the paper

Venezuela has offered the US sweeping economic concessions - including a potential agreement to allow American companies to take a major stake in its oil sector - in secret talks that lasted for months, the New York Times reported on Friday, citing sources. Washington, however, is said to have rejected the deal, with the political future of President Nicolas Maduro being the key sticking point.

Over the past several weeks, Washington has conducted strikes off Venezuela's coast against what it called "drug boats," killing more than two dozen people and expanding its military presence in the region. US officials have accused Maduro of having links to narcotics networks - a charge that he denies.

Caracas has accused Washington of seeking regime change, which US officials have denied.

However, unnamed American and Venezuelan officials told the NYT that behind the public hostility, Caracas made a wide-ranging diplomatic offer to Washington. It reportedly included a proposal to open all existing and future oil and gold projects to American companies, grant preferential contracts to US businesses, redirect Venezuela's oil exports from China to the US, and scale back energy and mining deals with Chinese, Iranian, and Russian companies.

The talks, held over several months between Maduro's top aides and US envoy Richard Grenell, aimed to de-escalate tensions, the article said. While progress was reportedly made on economic terms, the two sides failed to agree on Maduro's political future, the report said.

US Secretary of State Marco Rubio has been the leading voice in the Trump administration's push to oust Maduro, according to the NYT. He was said to be skeptical of Grenell's diplomatic outreach and urged a tougher line toward Caracas.

An earlierreportby the NYT claimed Trump ordered that dialogue with Venezuela be broken off after he had "grown frustrated" that Maduro would not voluntarily relinquish power. The paper also said the US was drafting plans for a potential military escalation.

Maduro, meanwhile, has warned that Venezuela would enter a state of "armed struggle" if attacked and has increased military readiness across the country.

(RT.com)