The benefits that Venezuela might obtain with the rise in oil prices will be reduced as a result of international sanctions once morest Russia, following the invasion of Ukraine, since a large part of the payments that Venezuela receives go through the Eurasian nation. This was explained to Efe by economists specialized in the sector.
Rise in the price of oil
“There is a specific problem for Venezuela with this issue of the war: How do we stand regarding the sanctions once morest Russia? A good part of the payments for our oil is received through there. So, on the one hand, you have more income, but now you have problems getting paid,” said economist and oil expert Luis Oliveros.
In addition, he assured that the support that the government of Nicolás Maduro has shown to his Russian counterpart, Vladimir Putin, “might bring more sanctions once morest Venezuela.”
This Wednesday, the price of a barrel of Brent oil, for delivery in May, soared 7.58%, to close its trading on the London futures market at $112.93, following OPEC+’s decision to maintain its plan to moderately increase pumping.
Pdvsa
Oliveros said that, without a doubt, an increase in the price is good news for Venezuela, which might sell its oil at a higher price, always bearing in mind that the state-owned PDVSA “sells its crude at a significant discount, sometimes up to 30%. % or 40% of the price” due to the complications of attracting buyers in the face of US sanctions once morest the oil company.
“Then, although there are higher prices, we are not going to receive all the increase,” he added.
For his part, the economist Asdrubal Oliveros, director of the firm Ecoanalítica, considers that there are two opposing forces operating. On the one hand, the rise in Brent benefits the State “with the little it exports.” And, on the other, “the entire dynamic of sanctions once morest Russia complicates the placement and collection of that crude, since part of the payments move through Russia.”
Last Thursday, the leaders of the European Union (EU) gave the green light to new sanctions once morest Russia for the invasion of Ukraine, which affect the financial sector, energy, dual-use goods, transport or visas.
One of the main sanctions imposed is the exclusion of some Russian banks from the SWIFT payment system.
The president of the United States, Joe Biden, did not rule out this Wednesday vetoing US imports of Russian oil. And he accused Russia of deliberately targeting areas where civilians reside in Ukraine.
