Russia accused of buying oil from Venezuela
Reuters published exclusive information on April 19 showing that Russian oil giant Rosneft is seeking to help current Venezuelan President Nicolas Maduro by purchasing large amounts of oil from Venezuelan oil giant PDVSA.
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Russian energy giant Rosneft has been buying Venezuelan oil despite possible US sanctions. |
Specifically, PDVSA transferred oil to Rosneft and was paid by the Russian group through India's Reliance Industries Ltd., PDVSA's largest cash customer. Unlike normal oil transactions that take place over 30-90 days, Rosneft paid immediately and PDVSA reduced the selling price.
Cash is returned to Russian banks or used to pay for additional expenses such as maritime services or freight charges so that the transportation process is not interrupted.
The Russian bank, according to Reuters, is Evrofinance Mosnarbank. The bank was sanctioned by the US last month for its alleged involvement. However, an Evrofinance spokesman denied the cash transactions.
Reuters recalls that Russia has lent Venezuela nearly $16 billion since 2006, which is being repaid in oil. In addition, Russia has also taken significant stakes in oil projects in the South American country.
Rosneft and PDVSA's somewhat unusual payment deal makes US sanctions ineffective.
This latest move is expected to pave the way for Washington to impose new sanctions. However, on the Russian side, Russian Deputy Foreign Minister Sergey Ryabkov announced on September 18 that Russia will counter US sanctions.
“We are concerned about the continued actions of the United States against countries in the Latin American region. We consider the sanctions to be completely unjustified, illegitimate… We will fight them. Venezuela and Cuba are our allies and strategic partners in the region. We will do everything possible to make them feel our support,” Ryabkov said.
