Eximbank Cancels $800 Million Credit for Mexican Oil Company Pemex Over Oil Shipments to Cuba
October 6, XX: The United States credit agency, Eximbank, has sanctioned the Mexican oil company, Pemex, by canceling a credit of $800 million due to their export of free oil to Cuba. The decision comes as a result of the trade embargo imposed by the United States on the island nation. Reports suggest that Eximbank’s action is in response to recent donations made by Pemex to Cuba, which were allegedly concealed by the Mexican government in order to avoid sanctions.
According to international media outlet Milenio, Pemex donated over one million barrels of crude oil to Cuba in June and July. The cancellation of the credit was initially intended to be kept private at the request of Pemex to prevent a potential financial and diplomatic scandal. However, the information was leaked to local press organizations.
It is important to note that while Eximbank’s financial penalty solely targets the state-owned Pemex, it does not extend to the entire Mexican government. As a result, the North American entity will continue to support US investors in their operations throughout Mexico, with the exception of the oil sector.
Mexico has been a significant supplier of oil to Cuba this year. According to a report from the Energy Institute of the University of Texas, Mexico has sent approximately $200 million worth of oil to the crisis-ridden island. This is crucial for Cuba, as it heavily relies on hydrocarbon imports from allied nations such as Russia and Venezuela to sustain its energy system.
In total, Petróleos Mexicanos (Pemex) has provided Cuba with 2.81 million barrels of crude oil and derivatives since March. The most recent recorded shipment occurred on September 16 when the Vilma ship, flying the Cuban flag, arrived at the port of Cienfuegos with 350,000 barrels of crude oil worth $29.4 million from Mexico’s Pajaritos in Veracruz.
The cancellation of the $800 million credit by Eximbank is likely to have significant implications for both Pemex and Mexico’s relationship with Cuba. As international media outlets continue to report on this matter, the extent of the consequences on all relevant parties remains uncertain.