Traders are rebranding Venezuelan oil as Brazilian to bypass US sanctions, with China being the main buyer. The rebranding involves altering documentation and signals to disguise the origin of the oil. This practice allows Chinese refiners to import Venezuelan oil without it affecting government import quotas.
Key Points
Traders are illicitly rebranding Venezuelan oil as Brazilian to ship it directly to China
The rebranding involves altering documentation and signals to disguise the origin of the oil
Chinese refiners are benefiting by importing Venezuelan oil without it counting towards government import quotas
Pros
Allows Venezuelan oil to be sold and exported despite US sanctions
Enables Chinese refiners to access Venezuelan oil without affecting import quotas
Cons
Involves deceptive practices and misrepresentation of oil origin