Venezuela turns to crypto for oil trades under renewed US sanctions: Reuters
Share this article
Venezuela’s state-owned oil company, Petróleos de Venezuela S.A. (PDVSA), is turning to crypto for its oil trades in response to renewed US sanctions that target the nation’s oil and gas industry, Reuters reported on Tuesday.
As noted, PDVSA has been utilizing the stablecoin Tether (USDT) for oil exports since the previous year. By the end of the first quarter of 2024, the company had successfully transitioned many of its spot transactions to contracts that require prepayment in USDT, and it now mandates that new customers make payments through a digital wallet.
“USDT transactions, as PDVSA is demanding them to be, don’t pass any trader’s compliance department, so the only way to make it work is working with an intermediary,” a trader explained.
This strategic move comes on the heels of the Biden administration’s decision to reimpose sanctions on Venezuela’s oil and gas industry last week. The sanctions were reintroduced after President Nicolás Maduro’s government failed to adhere to the terms of an agreement signed in Barbados in October 2023, which was intended to set Venezuela on a course to hold a competitive presidential election in 2024.
The Maduro administration has intensified its crackdown on political adversaries, including the disqualification of prominent opposition candidate María Corina Machado.
The US initially imposed severe sanctions on Venezuela’s oil sector following President Maduro’s 2018 re-election, which was recognized as illegitimate by the US and several other Western nations.
However, the Biden administration relaxed these sanctions in October last year following a deal between the Venezuelan government and opposition parties regarding the 2024 election.
During the six-month period when sanctions were lifted, Venezuela managed to boost its oil exports to nearly 900,000 barrels per day, with the majority going to China and a significant portion to the US.
USDT has become one of the most popular methods to skirt sanctions. According to a recent report from the US Department of Treasury, Russia has increasingly shifted to alternative payment methods, including USDT, to evade sanctions.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight – and oversight – of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
