Ships Falsifying Cargo Documents to Ship Venezuelan Oil, Report Says

At least three vessels, including a Chinese-owned ship, have illegally exported Venezuelan oil and falsified cargo documents to conceal the oil’s origin, Reuters reported Nov. 30. The ships include the Chinese-owned supertanker Young Yong, sanctioned by the U.S. in November (see 2211030036), which loaded oil in Venezuela last year before sailing to the Chinese port of Qingdao with cargo documents that stated the oil was from Malaysia, the report said.

The use of false documents to conceal cargo origin from sanctioned countries has increased compliance risks for oil and trading firms, experts told Reuters. "It's now becoming clear you cannot trust certificates of origin even when they come with official government documentation," said Cari Stinebower, a Winston & Strawn sanctions lawyer. Stinebower, a former official at the Office of Foreign Assets Control, told Reuters Iran had started the use of false cargo documents for its oil to avoid U.S. sanctions, but that it appears oil from Venezuela is now being transported under the adopted technique.