Iran, Venezuela strike oil embargo under US sanctions – sources

Venezuela has agreed to a key agreement to exchange heavy fuel for an Iranian container, with five people close to the event saying they have seized the first shipments this week.

According to sources, the agreement between the state-owned companies Petroleum de Venezuela (PDVSA) and the Iranian National Petroleum Corporation (NIOC) will strengthen cooperation between the two countries. Washington’s enemies.

One of the men said that the first phase of the agreement was expected to last six months, but could be extended. Reuters could not immediately determine other details about the mwpact.

The oil ministers of Venezuela and Iran, as well as the government-led PDVSA and NIOC, did not respond to requests for comment.

The Treasury Department’s email told Reuters that the deal could be a violation of US government sanctions.

U.S. sanctions not only bar Americans from doing business with Iran and Venezuela’s oil sectors, but also threaten to impose “secondary sanctions” on any non-American or entity that trades with both oil companies.

Secondary sanctions may impose a variety of penalties on targets, including access to the U.S. financial system, fines, or freezing U.S. assets.

In response to a request for comment on the agreement, the Treasury Department responded: “Venezuela’s economy has the power to impose sanctions on anyone determined to work in the oil sector,” he said, but did not specify whether the current agreement would violate sanctions.

Venezuelan troops cross the Aruka River on the border between Colombia and Colombia, March 28, 2021 (Credit REUTERS / LUISA GONZALEZ / FILE PHOTO)

US sanctions are often enforced by the administration. Former United States President Donald Trump’s government seized Iranian cargo during a voyage to Venezuela last year under sanctions, but his successor, Joe Biden, did not take similar action.

A source familiar with the matter in Washington said that the exchange of information between Venezuela and Iran on US government radar could be a breach of sanctions in recent months and that they would like to see how far it could go.

A source close to US officials has said that the deployment of Iranian diplomats could help President Nicolas Maduro negotiate with the Venezuelan opposition.

Sanctions in both countries have in recent years overshadowed oil sales by encouraging NOOOS to export to Asia, including shipping services and fuel exchanges.

At a meeting of the UN General Assembly in New York on Wednesday, the foreign ministers of Venezuela and Iran reaffirmed their commitment to strengthening strong bilateral trade despite US attempts to block it.

Trump’s tightening of sanctions has reduced Venezuela’s oil exports – the backbone of the economy – to its lowest level in 77 years and sources of oil imports.

A U.S. Treasury Department spokesman was not immediately available for comment.

“We will continue to impose sanctions on Iran and Venezuela,” the spokesman said. The treasury is on the blacklist of those who support efforts to evade US sanctions on Iran and “further incite instability around the world,” the official said.

He said the exchange contract would provide PDVSA with a steady supply of condensate, which would further weaken oil production from Oranoko Belt, the largest producer. Asphalt requires mixing before the raw material is transported and exported.

In response, he said, Iran would have access to Venezuela’s heavy oil shipments in Asia.

Load this week

A.D. In 2019, the U.S. Treasury Department banned the company from using the US dollar, and PDVSA has increased oil exchanges to reduce cash payments. Washington has banned foreign companies from receiving or exporting Venezuelan oil.

Since last year, PDASS has imported two containers of Iranian container into one of the cargo deals to meet the special needs of the dead, and has traded Venezuelan jet fuel for Iranian gasoline.

The new agreement will allow PDVSA to have its own lubricating oil refinery in Venezuela to produce the most important engine fuel, and to provide a converter source to ensure the export of oregano crude mixtures.

The first 1.9 million barrels of Venezuela’s merry-gourd ship sailed from the port of PDVSA Jose earlier this week to the Iranian National Tanker Coalition (NITC) and the VLCC Felicity. Three people and a monitoring service TankerTrackers.com.

NITC, part of the NIOC, did not respond to a request for comment.

The ship is not included in PDVSA’s monthly port plans for September, which lists planned imports and exports. However, TankerTrackers.com identified him during Jose’s visit this month.

One of the three sources and PDVSA’s port plans is the partial payment of Venezuela’s raw material for the 2 million barrels of Iranian container shipment that arrived in Venezuela on Thursday.

A little execution

Last year, the former Trump administration seized 1 million barrels of Iranian oil from Venezuela as part of a “high pressure” strategy and listed five top naval captains, but the United States has not interrupted Iran’s latest supplies to Venezuela.

The State Department declined to comment on the deal. A spokesman for the Treasury told Reuters:

US officials do not intend to impose sanctions on Venezuela unless Maduro takes concrete steps to hold free and fair elections.

Trump’s embargo on PDVSA’s business dealings has led to the socialist-dominated country switching to Iran and other countries as a series of unsolicited transactions.

PDVSA’s new customers and exchanges After zigzag by 2020, it has allowed around 650,000 barrels (bpd) to stabilize exports this year.

However, a severe shortage of fertilizer has recently restricted oil exports and put Oronoko belt production in “emergency”, according to PDVSA documents assessed by Reuters.

P.D.S.A.E.E.E.E. A.A. AMS plans to improve the status quo that has been struggling to export when suppliers stop efficient shipping due to sanctions.

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