US authorizes European oil companies to load oil from Venezuela, report claims

Italian oil company Eni and Spain-based energy company Repsol could start shipping Venezuelan oil to Europe as soon as July five people familiar with the matter told Reuters,

The move would see the resumption of oil-for-debt swaps, which stopped two years ago when the US intensified sanctions on Venezuela.

The US State Department was reported to have given the two companies written approval to resume shipments.

A resumption in the supply of Venezuelan crude, without the US appearing to relax its sanctions on the country, was seen as a way in which Europe could reduce its dependence on Russian energy. It would also serve to redirect some of Venezuela’s cargoes from China.

One of the sources told Reuters that the oil received “has to go to Europe. It cannot be resold elsewhere.”

Washington has not made similar authorizations for the US oil company Chevron Corp, India’s Oil and Natural Gas Corp and France’s Maurely Prom, which also pressured the US State Department and the US Treasury Department to obtain oil in exchange for billions. of dollars in debts accumulated by Venezuela.

Venezuela’s PDVSA has not scheduled Eni and Repsol to take any shipments this month, according to a June 3rd preliminary company plan seen by Reuters.