Venezuela turns to India as sanctions cut oil flow to U.S., Europe

[webfact]

Venezuela turns to India as sanctions cut oil flow to U.S., Europe

By Collin Eaton, Marianna Parraga and Olga Yagova

 

FILE PHOTO: Venezuela's Oil Minister and President of Venezuelan state-run oil company PDVSA Manuel Quevedo (C) arrives to attend the Petrotech conference in Greater Noida, India, February 11, 2019. REUTERS/Anushree Fadnavis/File Photo

 

HOUSTON/MEXICO CITY/MOSCOW (Reuters) - Venezuela's oil exports have tapered off and shifted toward India since new U.S. sanctions began Jan. 28 as state-run oil company PDVSA seeks to replace deliveries to the United States and Europe that were disrupted by payment restrictions.

 

The South American nation is turning its focus to cash-paying buyers, especially in India, its second-largest customer after the United States, amid U.S. sanctions designed to undercut financial support for Venezuelan President Nicolas Maduro. Sanctions are designed to bar Maduro's access to oil revenue that has helped his government remain in power.

 

In the two weeks since the sanctions were announced, PDVSA has been able to load and export 1.15 million barrels per day (bpd) of crude and refined products, according to Refinitiv Eikon data. Venezuela was exporting about 1.4 million bpd in the months before sanctions, according to the Eikon data.

 

Two supertankers, Baghdad and Folegandros I, launched late on Monday from Venezuela's Jose terminal carrying cargoes to Indian ports.

Ship tracking data in Refinitiv showed several other tankers carrying Venezuelan crude or fuel towards Asia, although the final destinations of these vessels were not yet clear.

 

But finding customers in Asia may be difficult, analysts said, as Washington uses its political and financial clout to pressure countries to stay clear of dealing with PDVSA.

 

Barclays bank addressed the issue in a special report on Venezuela, issued on Tuesday.

 

"Considering all the difficulties that Venezuela faces in delivering oil to other markets and the legal, reputational and financial risks confronting traders or counterparties that do business with it under the current conditions," the bank wrote, "it seems unlikely that all production can, in short order, go to other markets."

 

DOUBLING INDIA SALES

Before the sanctions, PDVSA shipped over 500,000 bpd to the United States, its largest cash market, followed by India then China, at above and below 300,000 bpd respectively. [GRAPHIC: Top importers of Venezuelan crude: https://tmsnrt.rs/2RYGk2E]

 

Venezuela has sent its oil minister, Manuel Quevedo, to India to convince refiners, including Reliance Industries Ltd and Nayara Energy Ltd, to double their oil purchases.

 

"We are selling more than 300,000" bpd to Indian buyers, Quevedo said on Monday in New Delhi. "We want to double that amount."

 

Reliance is among PDVSA's main cash-paying customers, while Nayara receives Venezuelan oil from one of its largest stakeholders, Russian oil-giant Rosneft. The latter supplies PDVSA oil to Vadinar, India's second largest refinery, under a Rosneft payment for loan program that dates to 2014.

 

Rosneft should be able to continue to receive PDVSA cargoes under its oil-for-loans, according to a reading of U.S. sanctions by lawyers and traders. Nayara receives around half of Venezuelan crude supplied to Rosneft, with the remainder shipped to Europe, including Rosneft operations in Germany.

 

According to a trading source close both to Rosneft and PDVSA crude operations, the last cargo containing fuel oil for the Russian company left Venezuela for Asia on Jan. 30-31, containing around 1 million barrels.

 

"PDVSA supplies to Rosneft or its subsidiaries in India under deals clinched before the sanctions are not falling under the sanctions," said Natalia Abtseshko, head of international projects group at Moscow law firm Vegas Lex.

 

CASH STILL LACKING

Indian refineries could absorb a large portion of those barrels, but it is still unclear how cash sales would be effected without using the U.S. or European bank systems after April 28, the deadline set by the U.S. Treasury.

 

Venezuela also is open to barter arrangements with India using oil as payment, its oil minister said, though Quevedo did not explain how such a system would work.

 

Quevedo's willingness to barter goods for oil suggests the turn may not soon resolve the country's need for cash-paying customers to replace U.S. buyers.

 

About 9 million barrels were stuck last week in tankers waiting for payment or discharge instructions, according to Eikon data. Most are anchored in the U.S. Gulf Coast as Venezuelan opposition leader and self-proclaimed president Juan Guaido moves to set up escrow accounts to receive proceeds.

 

(Reporting by Collin Eaton in Houston, Marianna Parraga in Mexico City, Olga Yagova in Moscow; additional reporting by Nidhi Verma in New Delhi, Gleb Gorodyankin in Moscow, and Henning Gloystein in Singapore; editing by Gary McWilliams and Marguerita Choy)

 

-- © Copyright Reuters 2019-02-13

[Bluespunk]

6 hours ago, webfact said:

The South American nation is turning its focus to cash-paying buyers, especially in India, its second-largest customer after the United States, amid U.S. sanctions designed to undercut financial support for Venezuelan President Nicolas Maduro. Sanctions are designed to bar Maduro's access to oil revenue that has helped his government remain in power.

Venezuela's ruling party only has itself to blame, if they'd ordered billions of dollars of US arms, then they could have avoided sanctions...

 

{Sarcasm alert}

[radiochaser]

On 2/13/2019 at 5:15 AM, Bluespunk said:

Venezuela's ruling party only has itself to blame, if they'd ordered billions of dollars of US arms, then they could have avoided sanctions...

 

{Sarcasm alert}

Yep.  The Maduro family could have done that with money from their own bank accounts and had billions of  dollars left over afterwards.  

They probably did not think about that.   ????

[Prissana Pescud]

I feel sorry for the poor. They are hostages to US/Russia/China politics.

And foreign aid being denied to them.

I have yet to see ship and aircraft loads of aid arriving from India, China or Russia.

But it is not about the poor is it.

The smug smiles on the overly well fed Venezuela oil representatives shows the 1% of a countries wealth.

All the others are struggling to scratch a living.

[leeneeds]

One wonders how , why the military are yet to fold and back the new elected president,

entrenched corruption that will take years to reconcile, 

patience will be sorely tested by the main stream.

[GinBoy2]

Being of latin american heritage, and a cousin who now lives in Columbia, I've watched with dismay the implosion of Venezuela.

Chavez ran a smoke a mirrors economy, funded during the $100+ oil days.

He collapsed the domestic food production market by subsidized imports, the results of which, now they have no money for imports is driving people into Columbia just for something to eat.

 

I watched some idiotic British guy on TV the other day (I think he used to be mayor of London, can't remember his name) claiming that US sanctions had caused all this.

 

Trouble is there were no US sanctions until last month.

The Venezuelan regime, created all this by themselves

[GinBoy2]

There were NO US sanctions against them until last month. You can try to spin it, but the facts don't support you. 

This is a very simply case of communist regime that just failed

[carbine1125]

13 hours ago, GinBoy2 said:

Being of latin american heritage, and a cousin who now lives in Columbia, I've watched with dismay the implosion of Venezuela.

Chavez ran a smoke a mirrors economy, funded during the $100+ oil days.

He collapsed the domestic food production market by subsidized imports, the results of which, now they have no money for imports is driving people into Columbia just for something to eat.

 

I watched some idiotic British guy on TV the other day (I think he used to be mayor of London, can't remember his name) claiming that US sanctions had caused all this.

 

Trouble is there were no US sanctions until last month.

The Venezuelan regime, created all this by themselves

Not true, sanctions have been in place since Chavez upset the yanks with his rhetoric.

[GinBoy2]

7 minutes ago, carbine1125 said:

Not true, sanctions have been in place since Chavez upset the yanks with his rhetoric.

Prior to last month there have never been economic sanctions imposed by the US to restrict oil trade, or any other trade.

It is true to say that the US restricted arms sales and imposed travel restrictions on individuals....so you're saying that caused economic collapse???

[billd766]

1 hour ago, Prissana Pescud said:

Who has liked your post. BS does not always baffle brains 

I liked his post.

 

A large part of the problem is that the USA as usual wants a regime change to somebody whom they favour.

 

For some reason that I cannot understand the USA thinks that it is the master of the world and every country in the world MUST dance to their tune or they will face both internal and external pressure for a regime change.

[GinBoy2]

2 hours ago, billd766 said:

I liked his post.

 

A large part of the problem is that the USA as usual wants a regime change to somebody whom they favour.

 

For some reason that I cannot understand the USA thinks that it is the master of the world and every country in the world MUST dance to their tune or they will face both internal and external pressure for a regime change.

Well the US I must agree has an at best checkered history in meddling in Central & South America.

But this is one that all of their own making. Past administrations have actually taken a rather agnostic position, just sat back and watched the carnage unfold

 

From your spelling I'm assuming you may be a Brit. If that's true, you guys have a whole lot more experience in 'meddling' in other countries than we ever do!

[Prissana Pescud]

2 hours ago, billd766 said:

I liked his post.

 

A large part of the problem is that the USA as usual wants a regime change to somebody whom they favour.

 

For some reason that I cannot understand the USA thinks that it is the master of the world and every country in the world MUST dance to their tune or they will face both internal and external pressure for a regime change.

Well you would like his post. I am not a supporter of US aggression and a check of my posts will support this.

However, Maduro is systematically denying basic human rights, the correct use of the rule of law on his own countrymen.

He is a scumbag at best and a maggot at worst.

And maggots feed on dead flesh. He is killing his own countrymen. And denying food aid condemns him further.

Brunei and Kuwait citizens are not in turmoil. But they have resources and population/land mass similar to Venezuela.

Because the powers that be dish out some goodies to the general population in these countries.

Not so Maduro. He and his corrupt money grabbing scumbags are raping the natural wealth of the country.

QED

[metisdead]

A post in which the quoted content had been altered has been removed as well as the replies. 

 

A post in violation of fair use policy has been removed. 

 

 

[billd766]

1 hour ago, GinBoy2 said:

Well the US I must agree has an at best checkered history in meddling in Central & South America.

But this is one that all of their own making. Past administrations have actually taken a rather agnostic position, just sat back and watched the carnage unfold

 

From your spelling I'm assuming you may be a Brit. If that's true, you guys have a whole lot more experience in 'meddling' in other countries than we ever do!

You are right, I am a Brit.

 

I doubt that we have more experience though you could be correct over 3 or 4 centuries.

 

The USA has acquired their experience over the last hundred years or so.

 

Between the 2 countries we have screwed up some but left others in a far better state than we found them.

[billd766]

1 hour ago, Prissana Pescud said:

Well you would like his post. I am not a supporter of US aggression and a check of my posts will support this.

However, Maduro is systematically denying basic human rights, the correct use of the rule of law on his own countrymen.

He is a scumbag at best and a maggot at worst.

And maggots feed on dead flesh. He is killing his own countrymen. And denying food aid condemns him further.

Brunei and Kuwait citizens are not in turmoil. But they have resources and population/land mass similar to Venezuela.

Because the powers that be dish out some goodies to the general population in these countries.

Not so Maduro. He and his corrupt money grabbing scumbags are raping the natural wealth of the country.

QED

But it IS their country and not part of the USA.

[GinBoy2]

1 minute ago, billd766 said:

But it IS their country and not part of the USA.

Yep you're right, it is their country to screw up, and they did it. 

Once again, the US had no economic sanctions against them until January 19, so unless imposing an arms embargo and denying travel privileges to the US for the regime leaders destroyed them, I just don't get what US interference has done to create this.

The pictures of Maduro blockading the freeway from Columbia to stop food and medicine aid getting in tells you a lot. 

This is all very reminiscent of the old communist Eastern Europe

 

https://www.nytimes.com/2019/02/07/world/americas/venezuela-aid.html

[GinBoy2]

14 minutes ago, billd766 said:

You are right, I am a Brit.

 

I doubt that we have more experience though you could be correct over 3 or 4 centuries.

 

The USA has acquired their experience over the last hundred years or so.

 

Between the 2 countries we have screwed up some but left others in a far better state than we found them.

Some of your ex colonies might dispute that.

South Africa was left with Apartheid

Uganda, Idi Amin and expulsion of Asians

Rhodesia, aka Zimbabwe, I really don't need to say more

Egyptians to this day, resent British occupation and the Suez 'incident'

 

And shall we not forget the shameful exit and partition India, 14M people displaced....how many people died?   Estimates range up to 2M

 

[Prissana Pescud]

57 minutes ago, billd766 said:

But it IS their country and not part of the USA.

But, but. 

Maduro and his scumbag policies and actions against his own people result in a dead head in US wanting to build walls.

So it becomes US interest in wanting refugees from Sth America to not exist.

If Maduro stopped syphoning off all the money from the country of Venezuela into the elite pockets this refugee problem would not exist.

Us has not done anything so far other than to offer aid and threats.

Russia which has provided millions to Venezuela infrastructure to buy cheap oil has not offered food aid.

Nor has India or China, before sanctions the biggest importers of oil from Venezuela.

Your posts are so simple. But, but. And take no notice of realism.

If you do not believe that this part of America is not in US sphere of interest, I say respectfully that you are naive. 

 

[Solinvictus]

18 hours ago, GinBoy2 said:

There were NO US sanctions against them until last month. You can try to spin it, but the facts don't support you. 

This is a very simply case of communist regime that just failed

Your comment that claimed there were no sanctions on Venezuela prior to last month is flat out wrong.  Also, they aren’t communist.

5 hours ago, GinBoy2 said:

Prior to last month there have never been economic sanctions imposed by the US to restrict oil trade, or any other trade.

It is true to say that the US restricted arms sales and imposed travel restrictions on individuals....so you're saying that caused economic collapse???

Wrong again. Please get your facts straight. Also, as the article in the thread talked about increased sales to India we can see that the economy is not collapsed.

Look. Venezuela has been the victim in what has been years of efforts to destroy it’s economy and overthrow its democratically elected president. What efforts? Sanctions that in fact restricts trade and most importantly here, debt restructure.  Venezuela has been prevented doing so as financial institutions have been prohibited from accepting their bonds. So yes, they are reasons for the current situation.

1 hour ago, GinBoy2 said:

Yep you're right, it is their country to screw up, and they did it. 

Once again, the US had no economic sanctions against them until January 19, so unless imposing an arms embargo and denying travel privileges to the US for the regime leaders destroyed them, I just don't get what US interference has done to create this.

The pictures of Maduro blockading the freeway from Columbia to stop food and medicine aid getting in tells you a lot. 

This is all very reminiscent of the old communist Eastern Europe

 

https://www.nytimes.com/2019/02/07/world/americas/venezuela-aid.html

@GinBoy2 Once again, wrong again!  There were in fact economic sanctions prior to January 19^th.

 

I do have a question for you? Where do you get your news? From a dumpster fire? Lol ????

"Venezuelan Human Rights and Democracy Protection Act" Was passed by House on May 28, 2014.

 

[Prissana Pescud]

1 hour ago, billd766 said:

You are right, I am a Brit.

 

I doubt that we have more experience though you could be correct over 3 or 4 centuries.

 

The USA has acquired their experience over the last hundred years or so.

 

Between the 2 countries we have screwed up some but left others in a far better state than we found them.

Mostly. For the Brits. All the African states. Zimbabwe, Nigeria, Kenya Sth Africa et al.

Pakistan, Iraq, Egypt.

Where do you want me to stop.

Because I could go on.

You are a hang over from colonialism.

You want good news. Hong Kong?

For the Yanks. Philippines, 

no, I just don;t want to go there or any of their other stuffups. 

[Cryingdick]

Was watching the news and some guy in a green uniform with a bunch of stars and decorations came on. He said Maduro should leave right now and go live in Cuba or Russia where ever will have him. If I am in Maduro's shoes I would heed that advice. I can't imagine what is going on in his head that makes him think this will end well for him? Why not leave now with all of your ill gotten gains?

[JAG]

8 hours ago, billd766 said:

But it IS their country and not part of the USA.

Perhaps more accurately it is the Venezuelan people's country, and not Maduro's and his gangs'?

 

I recall they rather rejected him in Parliamentary elections - didn't he get round that by creating his own alternative parliament?

 

The solution is for the Venezuelan people to take back control.

[rott]

10 hours ago, GinBoy2 said:

Some of your ex colonies might dispute that.

South Africa was left with Apartheid

Uganda, Idi Amin and expulsion of Asians

Rhodesia, aka Zimbabwe, I really don't need to say more

Egyptians to this day, resent British occupation and the Suez 'incident'

 

And shall we not forget the shameful exit and partition India, 14M people displaced....how many people died?   Estimates range up to 2M

 

Apartheid was introduced in South Africa after independence.

 

The disaster of Zimbabwe started after independence.

 

Uganda's 'Amin created' problems occurred after independence.

 

Europe was almost devastated by WWII but people have got on with it, so I do not understand how Egypt as a nation have such strong feelings after Suez. Vietnam as a nation is not a hotbed of anti-Americanism or Francophobes.

 

India/Pakistan, I am not familiar with the details.

[billd766]

14 hours ago, GinBoy2 said:

Some of your ex colonies might dispute that.

South Africa was left with Apartheid

Uganda, Idi Amin and expulsion of Asians

Rhodesia, aka Zimbabwe, I really don't need to say more

Egyptians to this day, resent British occupation and the Suez 'incident'

 

And shall we not forget the shameful exit and partition India, 14M people displaced....how many people died?   Estimates range up to 2M

 

Yet ALL of them wanted their independence from the UK.

 

In the end we gave it to them and they screwed it up themselves.

 

When we left Rhodesia it was the bread basket of Africa. Mugabe ran it into the ground.

 

Uganda worked very well until Amin ran it into the ground.

 

South Africa already had Apartheid and when the White South Africans let the black S Africans run the country the ahd a good run under Mandela and after him it was run into the ground.

 

Egypt was never a colony and look at the state it is now. All their own work.

[Solinvictus]

13 hours ago, Cryingdick said:

Was watching the news and some guy in a green uniform with a bunch of stars and decorations came on. He said Maduro should leave right now and go live in Cuba or Russia where ever will have him. If I am in Maduro's shoes I would heed that advice. I can't imagine what is going on in his head that makes him think this will end well for him? Why not leave now with all of your ill gotten gains?

I’m not defending the guy. But he was legitimately elected president. Ill gotten? There were outside observers too. Former President Jimmy Carter spoke on the integrity of the elections.  Did you know Venezuelan oil was being sold in the U.S.  So who else participated in such ill-gotten gain if that statement is true?

 

The guy you saw was probably a paid “pawn” from the CIA/States. What do you think will happen?

 

After reading up on the topic, hell, Venezuelans voting system seems to be better than in the states!