The Strategist

Venezuela resumes oil supplies to China despite US sanctions

11/27/2020 - 04:48

Venezuela has resumed direct oil deliveries to China, which were carried out in secret for over a year due to U.S. sanctions, Reuters reports with reference to the data of the tracker Refinitiv Eikon and internal documents of the Venezuelan state company PDVSA.

According to the agency, the Chinese oil companies CNPC and PetroChina stopped taking oil cargoes in Venezuelan ports since August 2019 after the expansion of U.S. sanctions, threatening trading partners of the Venezuelan authorities.

According to agencies, the first tanker to resume direct transport links with China was the ship Kyoto, which at the end of August this year loaded 1.8 million barrels of oil at the Venezuelan port of Jose. This was reported with reference to the TankerTrackers monitoring service.

Another tanker Warrior King unloaded Venezuelan oil in the Chinese port of Bayuquan, and tankers PetroChina loaded oil in November in Venezuela, the agency reported, citing the export schedules of PDVSA, shipping documents and data of Refinitiv Eikon.

The U.S. imposed a whole set of sanctions against Venezuela, the most painful of which was the freezing of the country's accounts in Europe and blocking $7 billion on the assets and interests of the oil and gas company PDVSA in the U.S. jurisdiction, as well as a ban on transactions with them. According to the White House, an additional $11 billion in oil supply losses are expected.

In Venezuela, mass protests against President Nicolas Maduro began on 21 January 2019 shortly after he was sworn in. The head of the opposition-controlled National Assembly, Juan Guaidó, proclaimed himself interim head of state. A number of Western countries, led by the USA, have declared his recognition. For his part, Maduro called the Head of Parliament a puppet of the United States. Russia, China, Turkey and a number of other countries supported Maduro as legitimate president.