They are being referred to as ‘zombie tankers’, Chinese-recruited vessels that reportedly conduct surreptitious transactions with Beijing that ‘cock a snook’ at the sanctions imposed by America’s on-the-way-out President Donald Trump to ship oil to China and provide a welcome measure of financial relief for a beleaguered Venezuelan economy.
The welcome Chinese outlet has been by far the biggest factor in the creation of a significant oil export surge for Venezuela in November, where nearly all of the oil exported by South American Republic, reportedly totalling in excess of more than half a million barrels a day, ended up. The country’s overall crude output reportedly stood at 484,000 barrels per day, though meager by the accustomed Venezuelan standards, is actually an increase of what previously, had reportedly been close to 400,000 barrels. Even the end of November figure represented a 48% year-on-year drop.
Washington’s response was swift. It moved to impose sanctions on the Chinese firm National Electronics Import & Export Corporation, a state-owned firm that represents the country’s defence production industries in overseas sales, focussing primarily on defensive electronics. Washington accused National Electronics of supporting the incumbent administration in Caracas and by extension, undermining democracy.
Whereas the Trump administration’s sanctions threats appear to have intimidated several countries and international shipping companies, Beijing, known for its ‘hardball’ foreign policy posture has persisted with its oil purchases from the Venezuelan state-run oil company, PDVSA, with tankers laden with oil destined for China employing various surreptitious methods including turning off their satellite-signalling devices and disguising their identity to avoid detection.
Over time the menace of the Trump sanctions had also frightened off many of Venezuela’s traditional buyers including Repsol SA, and Reliance Industries Ltd. However, a number of lesser-known companies have taken advantage of the absence of the ‘big names’ to duck under the sanctions radar.
This month, in its most high-profile show of defiance for the Trump sanctions, Washington’s arch enemy, Iran, reportedly dispatched its biggest fleet yet, believed to number about ten tankers to Venezuela, to help Venezuela through what, reportedly, is a crippling fuel shortage. Reports indicate that some of the flotilla will also be pressed into service to help export Venezuelan crude.
Back in August Washington reported that it had collaborated with foreign partners to seize a multi-million dollar Iranian fuel shipment bound for Venezuela which it described as the largest ever of its kind.
