US’ Rubio says China profited from Venezuela’s collapse through cut-price oil
US secretary tells senators Beijing received discounted crude via opaque debt deals, saying Maduro’s removal was key to curbing influence
US Secretary of State Marco Rubio accused China of profiting from Venezuela’s long-running economic collapse by securing discounted oil, telling senators that removing Nicolas Maduro was necessary to end energy arrangements that he said “favoured Beijing at the expense of the Venezuelan people”.
During a hearing of the US Senate Foreign Affairs Committee on Wednesday, Rubio portrayed China as a central beneficiary of the Maduro government, arguing that Beijing had taken advantage of sanctions and economic isolation to secure access to heavily discounted crude while expanding its influence in the western hemisphere.
“China was receiving oil at about a US$20 a barrel discount, and they weren’t even paying money for it,” Rubio said.
“It was being used to pay down debt that they were owed. This is the oil of the people of Venezuela, and it was being given to the Chinese as barter at a US$20 discount per barrel in some cases.”
Oil that should have supported domestic recovery, he argued, was instead diverted to service debts to China through opaque arrangements.
What does Maduro’s removal mean for Chinese investments in Venezuela?
Chinese refiners were able to obtain supplies at prices unavailable elsewhere, Rubio told senators, while Venezuela’s economy continued to deteriorate.