China Suspends Purchase Of Venezuelan Oil
Beijing has long been a supporter of Venezuela, but Trump’s latest threats have made Chinese oil bosses wary.
China’s largest energy company, the China National Petroleum Corporation (CNPC), is backing away from direct purchases of Venezuelan crude as the US tightens sanctions against Caracas, according to Al Jazeera (Qatar and Arabic media network).
Trump’s executive order on August 5 did not explicitly prohibit non-US companies from doing business with Venezuela’s state-run company PDVSA but did threaten to freeze US assets of any person or company determined to have “materially assisted” the Venezuelan government.
“This is a very dangerous situation for people in Venezuela who could further starve or die of illnesses without medications. Economic sanctions imposed by the US are killing people inside Venezuela literally since neither US Government neither Venezuelan doesn’t care about people but thinks just about their own high politics interests. China has been pushed the edge on the other hand by trade tariffs. Why would crude oil from Venezuela finally belong just to the US at a low price? When we talk about crisis linked to Iran and why not Russia one day US is trying to get cheap oil in all parts of the Earth for themselves. According to some oil experts, there is enough oil on this planet still but it seems that the US is making a long term plan to get everything”, YourTradeNews.com analyses.
CNPC has canceled plans to load about five million barrels of Venezuelan oil onto ships this month, Qatar News Agency reported. This comes after the latest executive order from US President Donald Trump, ratcheting up threats against companies that do business with Venezuela.
It is thought to be the first time in 10 years that Beijing has refused to buy Venezuelan oil, and follows a meeting between CNPC executives and senior US diplomats, a source told Reuters news agency.
Chinese and international media said an interruption in August would not mean a complete break in communication between China and Venezuela over oil.
Washington froze Venezuelan government assets held in the US in early August. Further guidelines are expected to be issued by the US Treasury, but the Trump administration has been trying to unseat socialist President Nicolas Maduro since at least his 2018 re-election.