Venezuelan authorities close deal to swap crude oil for food – media

Venezuela last year signed an agreement with Supraquimic CA to exchange crude oil for food supplies to the country. About it writes Reuters citing sources.

According to the documentation, the state-owned PDSVA from December 2020 was supposed to supply the company with up to 6 million barrels of oil per month. In exchange for nearly $ 260 million, Supraquimic pledged to provide food for the government program.

From late December to February 10, 2021, PDSVA delivered 6.2 million barrels of oil worth $ 257.8 million, the agency writes. Despite this, the deal with Supraquimic ultimately fell through when oil-based PDSVA accused two of the company’s executives of embezzling proceeds. Caracas authorities have issued arrest warrants for Supraquimic President Oscar Garcia and another food firm owner, Jose Llamosas.

Llamosas’s companies agreed to supply $ 80 million worth of products, but after receiving money for the first batch of $ 8 million, supplies were stopped. Supraquimic failed to fulfill its obligations to Venezuela, Reuters notes. Both businessmen were accused of embezzlement, collusion between an official and a contractor, and illegal cooperation.

An agreement between Supraquimic and PDVSA helped improve oil exports despite US sanctions imposed in 2019. Washington then banned American companies to buy Venezuelan oil and threatened businesses with sanctions for cooperation with Caracas. Bloomberg wrotethat due to restrictions, oil production in Venezuela fell to the level of 1945. The authorities have previously used raw materials to pay off debts and buy gasoline and diesel fuel. President Nicholas Maduro has also offered to buy the coronavirus vaccines for oil.