Traders have rebranded over $1 million worth of Venezuelan oil exports as Brazilian to circumvent U.S. sanctions, Reuters reported on Monday.
Citing two tanker tracking firms, documents and traders, the outlet said the move helps buyers cut logistical costs as well. Independent refiners in China are the main buyers of the oil and use Malaysia as a hub to receive the product. However, rebranding the oil allows the ships to travel directly to China, shortening the trip.
It is one of the many ways in which the South American country seeks to evade sanctions. Bloomberg reported in March that despite renewed measures shipments were expected to hit its highest level since June 2023.
The outlet had already anticipated Beijing planned to import Venezuelan crude through intermediary firms that use concealed shipping methods, such as spoofing vessel locations and falsifying documents, to avoid detection.
Unless Beijing explicitly directs refiners to halt imports, Chinese buyers, particularly independent refiners known as "teapots," were always expected to find alternative ways to procure the crude. Reuters also noted that a longstanding oil-for-debt agreement between China and Venezuela remains active.
The Biden administration had previously allowed limited U.S. engagement with Venezuela's oil sector, including a secret deal that permitted Chevron to make payments to the Venezuelan government. Trump's recent moves mark a return to stricter policies, with the revocation of Chevron's license forcing the company to wind down operations in Venezuela by May 27.
Originally published on Latin Times
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