Italian oil company Eni SpA and Spain’s Repsol SA could start shipping Venezuelan oil to Europe as soon as next month, Reuters reported on Monday.
Washington believes Caracas will not benefit financially from these cashless transactions, and that the money will be used to pay Venezuela's debt, according to the report.
ping that the crude from the sanctioned nation can help Europe become less dependent on Russia, reports RT.
The volume of oil that Eni and Repsol will receive will not be large, Reuters said quoting its sources, which means the impact on global oil prices will be modest.
The shipments will be allowed under a condition that the oil received “must go to Europe. It cannot be resold elsewhere,” Reuters said.
Eni and Repsol, which have joint ventures with Venezuela’s state oil company PDVSA, can count crude shipments on unpaid debts and overdue dividends, according to the agency. The deal would resume the oil-for-debt swaps halted two years ago.
Caracas has been under US sanctions for over 15 years. The latest round of restrictions, imposed in 2019 following allegations of election fraud, has seen all Venezuelan government assets frozen in the US and any dealings with US citizens and companies barred.