Thursday,22 July 2021 (YJC) _ A Chinese logistics firm has emerged as a central player in the supply of sanctioned oil from Iran and Venezuela.
A Chinese logistics firm has emerged as a central player in the supply of sanctioned oil from Iran and Venezuela, even after it was blacklisted by Washington two years ago for handling Iranian crude, seven sources with knowledge of the deals told Reuters.
The more prominent role of China Concord Petroleum Co, also known as CCPC, and its expansion into trading with Venezuela, have not previously been reported and highlight the limitations of Washington's system of restrictions, analysts say.
The details of the deals were described to Reuters by a range of individuals including one China-based source familiar with CCPC's operations, Iranian officials and a source at Venezuela's state-owned oil company PDVSA.
CCPC got involved in the Venezuelan oil trade this year through deals with small independent Chinese refineries known as teapots, according to monthly loading schedules, export schedules and invoices from April and May this year from PDVSA, as well as tanker tracking data and the PDVSA source.
Many refineries worldwide, including state-run players in China, stopped buying crude from Iran and Venezuela after the U.S. imposed sanctions, cutting millions of barrels per day from exports and billions of dollars from their income.
In the past year, CCPC has acquired at least 14 tankers to transport oil from Iran or Venezuela to China, two of the sources said.
A person reached by Reuters on CCPC’s registered phone number said she was unaware of any business activities of CCPC. She declined to be named. An email sent to an address for the company listed on the U.S. Treasury's website did not get a response.
PDVSA and Venezuela's oil ministry did not respond to a request for comment. Iran's oil ministry also declined to comment.
"China maintains normal, legitimate trades with Iran and Venezuela under the framework of international law that shall deserve respect and protection," a spokesman for China's foreign ministry said in response to questions about the role of Chinese companies in the trading of sanctioned oil.
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