China’s largest energy company is rejecting direct purchases of Venezuelan crude as the Trump Administration tightens sanctions against the Maduro regime.
China National Petroleum Corp. canceled plans to load about 5 million barrels of Venezuelan oil in vessels this month following President Donald Trump’s last executive order, according to people with inside knowledge that requested that his identity not be revealed since it is about internal information.
The measure would represent a setback for Maduro’s dictatorship that depends on both China and Russia to keep the country running in the midst of a humanitarian crisis, food shortages and hyperinflation.
China became the main destination of Venezuelan oil after the United States announced US sanctions against state-owned Petróleos de Venezuela, S.A. at the end of January. Venezuela could run out of options without the help of CNPC to load its oil, a main source of income that finances the Maduro regime.
The three August shipments canceled by PetroChina Co. Ltd., the CNPC subsidiary, have so far not attracted any other buyer, according to reports Bloomberg has had access to.