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- Report: Under US sanctions, Iran and Venezuela strike oil export deal
Report: Under US sanctions, Iran and Venezuela strike oil export deal
The swap arrangement has been on the radar screens of US government, officials say
Venezuela has agreed to a key contract to exchange petroleum products with Iran, with the first cargoes due this week, Reuters reported on Saturday, citing sources "close to the deal."
The arrangement likely represents a breach of US sanctions on both nations, and would see Venezuela swapping its heavy oil for Iranian condensate that it can use to improve the quality of its tar-like crude.
As the South American country seeks to boost its flagging oil exports in the face of US sanctions, according to the sources, the deal between state-run firms Petroleos de Venezuela (PDVSA) and National Iranian Oil Company (NIOC) deepens the cooperation between two of Washington's foes.
The oil ministries of Venezuela and Iran, and state-run PDVSA and NIOC did not reply to requests for comment
In Washington, a source familiar with the matter said the swap arrangement between Venezuela and Iran has been on the radar screens of US government officials as a likely sanctions violation in recent months and they want to see how far it will go in practical terms.
US officials are concerned, the source said, that Iranian diluent shipments could help provide President Nicolas Maduro with more of a financial lifeline as he negotiates with the Venezuelan opposition towards elections.
In a meeting at the UN General Assembly in New York on Wednesday, the foreign ministers of Venezuela and Iran publicly stated their commitment to stronger bilateral trade, despite US attempts to block it.