Two Chinese-flagged supertankers that were headed to Venezuela to collect crude under long-standing oil-for-debt agreements have abruptly changed direction and are now sailing back toward Asia, according to shipping data referenced by news agency Reuters. The move follows recent US action against a Russian-flagged tanker tied to Venezuela and highlights growing pressure on the country’s oil trade.
The very large crude carriers Xingye and Thousand Sunny had been idling in the Atlantic for several weeks, awaiting authorisation to dock at Venezuelan terminals. Their planned cargoes were intended to service loans extended by Beijing to Caracas, which are repaid through oil deliveries rather than cash. Data from LSEG cited by Reuters indicates both ships reversed course amid heightened uncertainty caused by the US embargo on Venezuelan oil and escalating political tensions after Washington seized a tanker linked to Venezuela.
Oil exports are central to Venezuela’s economy, accounting for roughly 95% of export revenues, with China representing its most important destination. Research group Beyond The Horizon estimates that Venezuela has already paid back over $50 billion in debt using crude shipments, though around $12 billion remains unpaid. The vessels’ retreat comes shortly after US forces intercepted and confiscated a Russian-flagged tanker, formerly known as Bella 1 and later renamed Marinera, in international waters. The seizure intensified diplomatic strains between the United States and Russia and underscored Washington’s hardline enforcement of sanctions.
As part of the embargo, Venezuelan waters are effectively closed to sanctioned tankers, blocking both inbound and outbound oil traffic. In parallel, the US Treasury’s Office of Foreign Assets Control has expanded its sanctions list to include four Chinese companies connected to Venezuela’s energy sector: Corniola Ltd., Aries Global Investment Ltd., Krape Myrtle Co, and Winky International Ltd.
Four tankers associated with those firms, Della, Nord Star, Rosalind, and Valiant, have also been blacklisted. While the US has previously sanctioned numerous entities involved in Venezuelan oil exports, the inclusion of Chinese firms is widely viewed as a warning to Beijing to steer clear of the dispute between Washington and Caracas.
