Author: https://www.facebook.com/benjkew/
Description: One of China's largest state-owned companies has filed a lawsuit against the Venezuelan state-run oil firm Petroleum of Venezuela (PDSVA).
Keywords: China, PDSVA, Sinopec, Venezuela,Economics, National Security,Venezuela
Date: 2017-12-08T17:05:28-08:00

# Chinese Company Sues Venezuela over Failure to Pay Debt

AFP/File Greg Baker

by Ben Kew 8 Dec 2017 0

8 Dec, 2017 8 Dec, 2017

## One of China’s largest state-owned companies has filed a lawsuit against the Venezuelan state-run oil firm Petroleum of Venezuela (PDSVA) over their failure to pay their debt, the Financial Times first reported.

The oil and gas company Sinopec filed a lawsuit on November 27 in a Houston, Texas, federal court for $23.7 million plus interest and damages over Venezuela’s failure to pay half of a $43.5 million order for steel products, accusing the PDSVA of a “disingenuous nature [and] feigned promises to make full payment.”

advertisement

It also alleges PDVSA “hid behind a complicated series of subsidiaries and affiliates,” adding that some PDVSA-affiliated companies “were acting in concert to defraud Sinopec.”

The disputed amount is only a fraction of Venezuela’s total debt burden, which according to a recent paper published by the Harvard Law Roundtable amounts to $190 billion, with the troubled country recently entering default on a number of its piling debts.

The lawsuit comes weeks after Chinese officials said they would not offer a debt relief package to Venezuela for the billions of dollars that it has borrowed, expressing confidence that would successfully meet their deadlines.

For years, China has provided their socialist ally with bank loans totaling up to $60 billion in exchange for large oil exports, although Venezuela’s oil production is now at its lowest point since 2004.

However, Chinese state media outlet Global Times said that claims of financial aid “reflect an erroneous and biased understanding of [both country’s] relationship,” which they said is mainly about fulfilling China’s energy needs.

“While oil-for-loans granted by China may have helped Venezuela’s cash-strapped government, the deals have also addressed China’s demand for energy,” the outlet wrote. “While there have been reports about the increasingly poor quality of crude oil from PDVSA this year, the fact that Venezuela is a key source of heavy crude supplies should not be overlooked.”

The lawsuit will exert further pressure on the PDSVA, which amidst its financial woes has recently been taken over by military leaders as socialist dictator Nicolás Maduro seeks to tighten his grip on the industry and the country as a whole.

To facilitate the takeover, Maduro has arrested two key officials on alleged corruption charges, and appointed government loyalist Major General Manuel Quevedo to the company’s most senior position, despite him having no prior experience in oil operations. Around 65 lower-level executives have also been arrested, as employees claim that he plans to “militarize” the company in key areas.

Another issue putting significant pressure on the company is the recent economic sanctions imposed by both the U.S. as well as the European, which in America’s case prohibit American citizens from dealing with the company in any capacity.

Unlike China, another of Venezuela’s leading creditors Russia last month agreed to offer a debt restructuring package on the $3 billion debt owed to them, as analysts fear that Vladimir Putin seeks to exert greater influence in the region.

Follow Ben Kew on Facebook, on Twitter at @ben_kew, or email him at bkew@breitbart.com.

Comment count on this article reflects comments made on Breitbart.com and Facebook. Visit Breitbart's Facebook Page.

BREITBART CONNECT

## MOST POPULAR

- Steve Bannon to Campaign with Roy Moore Election Eve in Dothan, Alabama 0 comments - 6 hours ago
- Bombshell: Roy Moore Accuser Beverly Nelson Admits She Forged Yearbook 0 comments - 1 day ago
- Judge Releases 19-Year-Old Charged in Facebook Video Torture of Disabled Chicago Teen 0 comments - 8 hours ago
- EXCLUSIVE – Handwriting Expert Touted by Washington Post Turns on Gloria Allred: Calls for Activist Attorney to Release Yearbook 0 comments - 20 hours ago
- Donald Trump: CNN ‘Least Trusted Name in News’0 comments - 7 hours ago
- Nolte: Media Close 2017 Proving Trump 100 Percent Correct About Fake News 0 comments - 5 hours ago
- Facebook Informs Breitbart Gloria Allred Yearbook Forgery is Fake News 0 comments - 22 hours ago
- Nolte — Flashback: WaPo Document Expert Said Forged Roy Moore Yearbook ‘Consistent with One Writer’0 comments - 1 day ago
- Forgery 101: Beverly Young Nelson and Gloria Allred Both Presented ‘Notes’ as Roy Moore’s Own Writing 0 comments - 23 hours ago
- Nolte — Pragmatism v. Cake Baking: Christians Can Vote for Roy Moore in Good Conscience 0 comments - 9 hours ago

I'm not Racist
Kevin Myers
Rep. Hudson: Now is the Time for National Reciprocity

## FROM THE HOMEPAGE

- Nolte: Media Close 2017 Proving Trump 100 Percent Correct About Fake News
  Comments
- Klein: Doug Jones is a George Soros-Tied Radical Leftist Rebranding Himself as Moderate
  Comments
- Alabama ‘Vote or Die’ Campaign Offering ‘$1-$50’ Payments for Participation
  Comments
- Tom Cotton Backs Up Roy Moore: ‘We Shouldn’t Have Trial by Newspaper’
  Comments
- Steve Bannon to Campaign with Roy Moore Election Eve in Dothan, Alabama
  Comments
- Democrats Ask Jared Kushner If He Sought Help Abroad for Family’s Business Debt
  Comments
- Howard Dean, Seth Rogen Attack SiriusXM over Bannon; Center-Left Hosts Defend Satellite Radio Platform
  Comments
- Judge Releases 19-Year-Old Charged in Facebook Video Torture of Disabled Chicago Teen
  Comments
- Disney Suspends Executive Jon Heely After Felony Child Sex Abuse Charges
  Comments
- Forgery 101: Beverly Young Nelson and Gloria Allred Both Presented ‘Notes’ as Roy Moore’s Own Writing
  Comments
- Nolte — Pragmatism v. Cake Baking: Christians Can Vote for Roy Moore in Good Conscience
  Comments
- Trump Touts Economic Improvement, Rebuilding Military and Roy Moore at Pensacola, FL Event
  Comments