China reaffirms Venezuelan relationship

China today rejected US warnings to halt business with Venezuela, calling sanctions Washington expanded this week a severe violation of "basic norms."

China's cooperation with Venezuela would continue and the US should support talks between Venezuelan president Nicolas Maduro and the western-backed National Assembly leader Juan Guaido.

"Facts have proven time and time again that sanctions will never help resolve the Venezuelan issue," the foreign ministry said today. "Instead, they will only increase the risk of the situation getting out of control."

Chinese state-controlled oil companies operate joint ventures with Venezuelan state-owned PdV, including the 165,000 b/d Sinovensa blending operation in Anzoategui state. Oil shipments from Venezuela pay back the $60bn China has loaned Venezuela, with roughly $16bn still outstanding as of July.

"We advise the US to draw lessons from history and give up sowing discord immediately," the ministry said.

National security adviser John Bolton told a Venezuelan rebuilding conference in Peru yesterday that China and Russia must halt their support for Maduro's regime. The US early this week blocked the sale or transfer of any Venezuelan assets in the US, prohibiting creditors from seizing Venezuelan-controlled US refiner Citgo to satisfy billions of dollars in debts.

Washington late last month granted a last-minute extension to Chevron to business in Venezuela, including the Petropiar upgrader that PdV plans to operate as a blending facility.

"To China, which is already desperate to recoup its financial losses, the quickest route to getting repaid is to support a new, legitimate government," Bolton said.