China pulls out from Venezuela contracts

American Thinker: As they say in the news industry, follow the money.

And the money in Venezuela, like a lot of Venezuelans, is fleeing.

Here’s a new one from Reuters:

SINGAPORE (Reuters) – PetroChina Co plans to drop Petroleos de Venezuela SA (PDVSA) as a partner in a planned $10 billion oil refinery and petrochemical project in southern China, said three sources familiar with the matter this week.The company’s decision adds to state-owned PDVSA’s woes after the United States imposed sanctions on the company on Jan. 28 to undermine the rule of Venezuelan President Nicolas Maduro. However, dropping the company was not a reaction to the U.S. sanctions but follows the deteriorating financial status of PDVSA over the past few years, said two of the sources, both executives with China National Petroleum Corp, the parent of PetroChina.“There will be no role of PDVSA as an equity partner. At least we don’t see that possibility in the near future given the situation the country has been through in recent years,” said one of the executives, asking to remain unidentified because he is not authorized to speak to the media.

The Reuters sources say it’s nothing to do with U.S. sanctions. But that, in the context of what the pullout means, is irrelevant: The Maduro dictatorship still loses the use of the money, or the oil earnings the money can bring. And the Chinese reasons are just as damning as if the whole thing had been about U.S. sanctions: Chavista fiscal practices, which have almost literally run Venezuela’s once-vast oil industry back into the ground. The story signals that the Chinese have decided that right about now’s a good time to finally cut their losses.

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