US control of Venezuela oil risks debt restructuring showdown with China
Source: Reuters
Analysis-US control of Venezuela oil risks debt restructuring showdown with China
By Libby George and Trevor Hunnicutt
Fri, January 23, 2026 at 1:06 AM EST·5 min read
LONDON/WASHINGTON, Jan 23 (Reuters) - U.S. control of Venezuela's oil exports has ensnared barrels that had been servicing debt to China, lining up another potential showdown between the two superpowers that could further complicate the South American country's path out of default.
Around a tenth of Venezuela's $150 billion foreign debt pile is estimated to be loans from China that the OPEC member was paying in oil cargoes - until the U.S. seized Venezuelan President Nicolas Maduro earlier this month.
Debt experts said the ramifications of China's claim on the cargoes and any clash with the United States could make it tougher for Venezuela to restructure its debt after a 2017 default and put at risk Beijing's cooperation in restructuring deals for other developing nations.
"Even under the best circumstances, this was going to be very messy - trying to disentangle where all these creditors stand in the credit hierarchy," said Christopher Hodge, chief economist with Natixis and a former U.S. Treasury official.
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