By Zoila Palma: U.S. control over Venezuela’s oil exports has ensnared crude shipments that were previously used to service debt owed to China, raising the risk of a new confrontation between Washington and Beijing and complicating Venezuela’s efforts to emerge from default.
Roughly a tenth of Venezuela’s estimated $150 billion foreign debt is owed to China and was being repaid through oil cargoes until the U.S. seized President Nicolas Maduro earlier this month.
Debt experts warned that competing claims over oil revenues could make it harder for Venezuela to restructure its debt following its 2017 default, Reuters report.
Documents from state oil firm PDVSA show that oil shipments to China had continued under a temporary 2019 deal, with some proceeds going into Beijing-controlled accounts even as other creditors went unpaid due to sanctions and default.
The Trump administration has now said proceeds from Venezuelan oil sales will be placed in a Qatar-based account controlled by Washington, potentially giving the U.S. significant leverage over which creditors are paid.
China’s foreign ministry condemned the redirection of oil exports, saying the legitimate rights of China and other countries must be protected, while the White House said the oil deal would benefit both Americans and Venezuelans.
The post International News: U.S. control of Venezuela’s oil puts China debt repayments at risk appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Zoila Palma: U.S. control over Venezuela’s oil exports has ensnared crude shipments that were previously used to service debt owed to China, raising the risk of a new confrontation between Washington and Beijing and complicating Venezuela’s efforts to emerge from default. Roughly a tenth of Venezuela’s estimated $150 billion foreign debt is owed to
The post International News: U.S. control of Venezuela’s oil puts China debt repayments at risk appeared first on Belize News and Opinion on www.breakingbelizenews.com.
