Venezuelan oil will go to Europe at the green signal of the United States

Italian oil company Anne Espia and Spain’s Repsol SA will begin shipping Venezuelan oil to Europe by next month. The United States has already given the green light to the two companies.

Five officials familiar with the matter told Reuters on condition of anonymity. However, Venezuela will not receive cash for this. They will give oil to pay off the debt.

But two years ago, the United States had an objection to this system. They imposed sanctions on Venezuelan oil imports in exchange for loans.

However, the amount of oil that Annie and Repsol will receive is not very large, an official said. It will not have much effect on world oil prices. Undoubtedly, the return of Venezuelan oil to Europe after a long hiatus is undoubtedly good news for the country’s President Nicolas Maduro.

The US State Department in a letter last month allowed the two Italian and Spanish companies to import Venezuelan oil.

The administration of US President Joe Biden hopes Venezuelan crude will help reduce Europe’s dependence on Russia for fuel. At the same time, Venezuela will reduce its oil sales to China.

The two European companies have joint ventures with Venezuela’s state-owned oil company PDVSA. They will now be able to borrow oil from Venezuela as unpaid loans and unpaid dividends.

But the United States has set a condition, an official said. “The oil that will be taken from Venezuela will only go to Europe,” he said. It can’t be sold anywhere else. ”
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As a result, Washington believes that even if oil is sold, PDVSA will not receive any money. The exchange will be completely ‘cash free’, the official said.

Venezuela sells oil to China for money. China, meanwhile, has continued to buy oil and gas from Russia since it did not sign Western sanctions. There is no doubt that China is now getting oil and gas from Russia at a discounted price.

Annie and Repsol received the permission from the United States last month, Reuters reported. Reuters tried to contact the authorities of the two companies but could not reach them.

Venezuelan Vice President Delsi Rodriguez hopes the US decision paves the way for a complete lifting of the country’s oil embargo.

He wrote in a tweet last month: Our country and our people have suffered because of that ban. ”