Facing US Sanctions, Venezuela offers suppliers' payment in Chinese Yuan


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Facing US Sanctions, Venezuela offers suppliers' payment in Chinese Yuan

Amid a sweeping US sanction on Venezuelan government-backed oil company, PDVSA, aimed at ousting the Venezuelan armed-forces backed socialist President Nicolas Maduro, the government of Venezuela alongside its oil company, PDVSA, which had been the cornerstone of sanction-hit Venezuelan economy for decades, was contemplating an option to pay PDVSA’s suppliers alongside contractors in to its account in China in Chinese Yuan, as a number of major European lenders alongside US financial entities had declined to process payments for the state-run oil giant over frets of US sanction, at least five people familiar with the subject-matter had unveiled on Thursday, the 28th of November 2019, on condition of anonymity as the sources were not authorized to speak over the issue on public.

In point of fact, Caracas, a founding member of OPEC (Organization of Petroleum Exporting Countries), a 14-nation pact of oil exporters, had mulled many options to process payments of its oil firm, PDVSA, over the recent past after Washington had inclined a sweeping ban on its crude oil, cutting off the countries access from major global payment systems, while in the wake of a such withering backdrop, Venezuela had made verbal proposal to at least four of its suppliers and contractors, said Venezuelan sources including two of the government officials alongside three other sources from the nation’s oil sector.