The Convenient Loop of Sanctions: Venezuela's Oil, US Hands, & China's Wallet
When the US government imposes 'crippling sanctions' on a nation's primary export, the stated goal is often to isolate and disrupt that regime's finances. But as this Bloomberg piece inadvertently highlights, the practical outcome is often a reshuffling of profits and control, rather than genuine isolation. China, a major energy consumer, often finds itself at the receiving end of these displaced
commodities, sometimes in ways that make you question who is really being sanctioned. CASE A: The Venezuela 'Crisis' & US-Approved Sales The US has maintained stringent sanctions against Venezuelan state oil company PDVSA since 2019, explicitly aiming to cut off funding to the Maduro government. Yet, waivers have frequently been granted to American and European companies to 'clear debts' or
'exchange for humanitarian aid,' effectively allowing a controlled flow of Venezuelan crude back into the global market, just with different gatekeepers. The Bloomberg article states, 'China has bought some Venezuelan oil that was purchased earlier by the US, according to Energy Secretary Chris Wright.' This isn't a direct sale from Venezuela to China, which would be in violation of sanctions;
it's a resale after the US has taken its cut, managing the flow. CASE B: The Iran Sanctions & The Parallel Market Curiously, a similar pattern emerged with Iran's oil. After the US re-imposed sanctions in 2018, Iran's official oil exports plummeted. However, reports from organizations like TankerTrackers.com (2021) consistently showed significant volumes of Iranian crude making their way to China,