Venezuela: A Chinese company transports Venezuelan crude.
Published on 28.8.2022
In clear defiance of U.S. sanctions on Venezuela, a defense-focused Chinese state-owned company is busy shipping Venezuelan crude.
The Asian manager has entrusted the transport of millions of barrels of Venezuelan oil, since November 2020, to the company China Aerospace Science and Industry Corp (CASIC), as part of an agreement intended to compensate for Caracas’ debt to Beijing, according to the British agency Reuters which cites three unidentified sources.
Since that date, the CASIC company has transported Venezuelan crude in three tankers which it acquired in 2020 from PETROCHINA, a Chinese oil company owned by the state-owned China National Petroleum Corporation (CNPC). The crude oil is stored in a fleet of tankers which it also received from PETROCHINA, the sources add.
CNPC has stopped loading oil in Venezuelan ports since August 2019, when the United States tightened embargoes against Venezuela and especially against its oil sector. But China has never stopped importing Venezuelan crude, which continues to arrive at Chinese ports through an indirect rebate method that makes the oil appear to be of Malaysian origin.
CASIC has so far transported 13 shipments consisting of some 25,000,000 barrels of oil, including two ships that arrived in China in September, according to the transport schedules of the Venezuelan state oil company PDVSA and the tanker tracking data from Refinitiv and Vortexa Analytics.
The quantity, estimated at some $1,500,000,000 for Merey crude, Venezuela’s benchmark, was declared as “crude oil” to Chinese customs without specifying its origin, one of the sources told Reuters.
“All the money stays in China. Venezuela’s Ministry of Foreign Relations is in charge of conciliation and accountability,” according to the source.
China and Venezuela established diplomatic relations 48 years ago and for the past few years the Asian giant has been one of the main allies of the South American country, helping it overcome US sanctions. intended, according to Caracas, to overthrow the government of Chavista President Nicolás Maduro.
On Thursday, Maduro highlighted the prosperity and productivity that Venezuela has achieved despite restrictions imposed by Washington, attacks on its currency, persecution of oil, seizure of bank accounts, freezing of Venezuelan assets and the theft of 30 000,000,000 dollars abroad.