China’s Sinopec Sues Venezuela’s PDVSA Over Unpaid Debts

8 Dec 2017   China, Venezuela

One of China’s biggest state-held companies, Sinopec, is suing Venezuela’s debt-ridden oil firm PDVSA in a U.S. court over unpaid bills, in a sign that China may be losing patience with its Latin American ally and is changing tone and tactics. The U.S. unit of Sinopec filed the lawsuit at the Texas Southern District Court in Houston on November 27, and the nature of the suit is “other fraud”. The language of the complaint suggests that the Venezuela-China bromance may be over, the Financial Times reports, citing the court documents it has seen. In the lawsuit, Sinopec is suing PDVSA for $23.7 million plus punitive damages, alleging that PDVSA has only paid half of the bill in a contract from 2012 to purchase steel rebar—which is used in oil rigs—for $43.5 million from the Chinese firm. In the complaint, Sinopec accuses PDVSA of having used “an undercapitalised shell with […]

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