Venezuela: China’s Sinopec sues oil company PDVSA over unpaid bills

Venezuela's crisis taking a toll on its children

China is actually turning up the heat on Venezuela.

One of its biggest state-owned companies has filed a lawsuit against Venezuela’s oil company, PDVSA, in a U.S. court, claiming millions of dollars the idea says the idea is actually owed.

Chinese oil as well as gas company Sinopec is actually suing PDVSA for $23.7 million plus interest as well as damages, accusing the Venezuelan company of breach of contract as well as conspiracy to defraud.

Related: Venezuela: We can’t pay our debts anymore

According to court documents filed on Nov. 27 in Houston, Texas, Sinopec USA claims which PDVSA has failed to pay for half of a $43.5 million order for steel products. The lawsuit was first reported by the Financial Times on Wednesday.

The disputed amount is actually smaller when compared to the massive debts Venezuela is actually struggling to repay.

Venezuela as well as PDVSA owe more than $60 billion just to bondholders. In total, the country owes $196 billion, according to a paper published by the Harvard Law Roundtable.

China’s state banks loaned $60 billion to Venezuela between 2007 as well as 2016, as well as the lawsuit is actually just the latest sign which Beijing is actually growing impatient with the embattled South American country.

Sinopec doesn’t hold back in its complaint, slamming PDVSA for its “disingenuous nature [as well as] feigned promises to make full payment.”

the idea alleges PDVSA “hid behind a complicated series of subsidiaries as well as affiliates,” detailing how various PDVSA-affiliated companies “were acting in concert to defraud Sinopec.”

PDVSA could not be reached for comment outside of business hours.

Related: The chaos in Venezuela could get much worse

Paying Sinopec’s bill is actually far via the most pressing matter facing Venezuela.

The country is actually suffering a massive humanitarian crisis. There is actually a severe shortage of food as well as medicine. Many Venezuelans can’t buy basic items because prices are skyrocketing. The country’s currency, the bolivar, is actually worth less than a tenth of a U.S. penny, as well as the central bank has less than $10 billion left in reserves.

PDVSA made a $1.1 billion debt payment last month. Shortly after, Venezuelan President Nicolas Maduro said which Venezuela as well as PDVSA might seek to restructure their debt payments.

CNNMoney (Hong Kong) First published December 7, 2017: 6:02 AM ET

Source : Venezuela: China’s Sinopec sues oil company PDVSA over unpaid bills