China Rebuffs U.S. Criticism of its Venezuela Ties

Posted by Joseph Keefe
Monday, February 5, 2018
China's support for Venezuela has benefited ordinary people and been broadly welcomed, the foreign ministry said on Monday after the U.S. Treasury accused China of aiding Venezuelan President Nicolas Maduro's government with murky oil-for-loan investments.
In a Friday speech at the Center for Strategic and International Studies, the U.S. Treasury's top economic diplomat, David Malpass, said China's focus on commodities and opaque financing deals had hurt, not helped, countries in the region.
His attack on China's role in aiding the Venezuelan government came a day after U.S. Secretary of State Rex Tillerson, ahead of a five-day tour of Latin America, raised the prospect of a military coup in the oil-rich country.
Speaking in Beijing, Chinese Foreign Ministry spokesman Geng Shuang said financial cooperation between the two countries was set by companies and financial bodies in both nations on commercial, win-win principles.
Loans were totally in accordance with international standards and benefited local people, he added.
"What the United States said is baseless and extremely irresponsible," Geng said.
Cooperation between China and Venezuela had supported the building of more than 10,000 low-cost houses, electricity generation and the cost of household appliances for three million Venezuelan homes on low incomes, he added.
"China-Venezuela cooperation has favourably promoted Venezuela's socio-economic development and has been welcomed and supported by all levels of society," Geng said.
"A stable Venezuela accords with the interests of all sides."
China last week said the United States was disrespecting Latin America after Tillerson warned countries in the region against excessive reliance on economic ties with China.
The Trump administration has imposed individual and economic sanctions on Venezuela's government for rights abuses and corruption. Maduro has accused Washington of seeking to oust him to improve access to the OPEC nation's oil wealth.
China and Venezuela have a close diplomatic and business relationship, especially in energy. China has repeatedly brushed off widespread condemnation from the United States, Europe and others about the situation in the country.
China has said it is confident in Venezuela's ability to properly handle its debts. Venezuela has borrowed billions of dollars from Russia and China, primarily through oil-for-loan deals that have crimped the country's hard currency revenue by requiring oil shipments to be used to service those loans.

Since 2007, China has loaned more than $50 billion to Venezuela through an oil-for-loans arrangement that helped Caracas reduce reliance on U.S. energy markets. But the flow of funds from Beijing has slowed since 2014, when abundant crude oil led to a crash in oil markets and made China less interested in maintaining its alliance with Venezuela. (Reporting by Ben Blanchard 

Categories: Contracts Energy Finance Government Update

Related Stories

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Wood JV Gets EPC Job for Shell off Brunei

CNOOC Starts Production at Offshore Field in South China Sea

MODEC, Carbon Clean to Advance FPSO-Mounted Carbon Capture Tech

Woodside to Shed Some Trinidad and Tobago Assets for $206M

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

Current News

Santos and QatarEnergy Agree Mid-Term LNG Supply

PTTEP Hires Energy Drilling’s Rig for Southeast Asia Offshore Job

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com