The Trump administration escalated pressure on Venezuela’s oil exports, sanctioning companies based in Hong Kong and mainland China, along with associated oil tankers, for allegedly circumventing existing restrictions.
New Sanctions Target Key Players
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On Wednesday, December 31, the Treasury Department’s Office of Foreign Assets Control added four companies with ties to the Venezuelan oil industry to the Specially Designated Nationals and Blocked Persons List (SDN). These include Corniola, based in Zhejiang, and the Hong Kong-based firms Aries Global Investment, Krape Myrtle, and Winky International. Additionally, the U.S. sanctioned four vessels—Della, Nord Star, Rosalind, and Valiant—linked to these companies.
While the United States has previously sanctioned ships and companies connected to Venezuelan crude trade, targeting Chinese entities is unusual and may signal Beijing’s desire to distance itself from the escalating clash between the Trump administration and the Nicolás Maduro regime. China currently accounts for 95% of Venezuela’s oil revenue.
“These ships, some of which are part of the shadow fleet serving Venezuela, continue to provide financial resources that fuel the illegitimate narco-terrorist regime of Maduro,” stated the US Treasury Department. “The Maduro regime is increasingly dependent on a global shadow fleet of ships that generate revenue for its destabilizing operations.”
Of the sanctioned vessels, the Rosalind has recently been observed near Venezuela, frequently undertaking short-distance voyages. However, it’s possible the others have been operating without transmitting transponder data.
Pressure Mounts on Maduro Regime
These sanctions represent the latest step in President Donald Trump’s campaign to pressure Maduro, citing alleged drug trafficking operations. On December 30, the Treasury Department imposed sanctions on 10 companies based in Iran and Venezuela for their purported involvement in arms trafficking.
In recent weeks, U.S. forces have intercepted two cargo ships, and a third vessel fled Venezuela after being pursued by American forces. Furthermore, the U.S. launched attacks against suspected drug trafficking vessels off Venezuela’s coast, resulting in casualties, and implemented a blockade of sanctioned oil tankers to disrupt the country’s energy exports.
China Voices Opposition
China has criticized the U.S. blockade of Venezuelan ports as “unilateral bullying” and asserted that the ship seizures constitute a violation of international law. Chinese private refiners, known as “teapots,” which account for up to a fifth of the country’s total refining capacity, have been purchasing Venezuelan crude for years, despite U.S. sanctions.
Beijing officially halted Venezuelan crude imports following U.S. sanctions in 2019, but resumed them in February 2024. However, through unofficial channels, the world’s top oil importer has continued its acquisitions, often disguising Venezuelan oil as a bitumen mix, according to Bloomberg.
On December 29, Trump confirmed that the United States had struck a facility within Venezuela, targeting loading docks used by suspected drug trafficking vessels, marking a significant escalation of the military campaign. The president has repeatedly threatened to expand ground attacks to target additional suspected facilities.
Orinoco Belt Oil Production Declines
As U.S. forces restrict exports and the threat of ground attacks intensifies pressure on Maduro’s regime, oil production from Venezuela’s richest oil deposit area is rapidly declining.
Data from the state oil company Petróleos de Venezuela (Pdvsa), cited by Bloomberg, indicates that oil production in the Orinoco Belt fell to 498,131 barrels per day on December 29—a 25% decrease compared to two weeks prior. The company has begun closing wells in some fields due to limited storage capacity and an inability to export quickly enough. The Orinoco Belt, which produces extra-heavy and heavy crude oil, traditionally accounts for nearly two-thirds of the country’s total production.
