Russia replaces US as Venezuela’s key naphtha partner

Washington’s sanctions on Venezuela have effectively cleared the way for Moscow to become the primary supplier of naphtha to the South American country, fully displacing the United States from this market, according to data from the Kpler analytics agency, cited by Russian media.

Venezuela produces heavy crude oil, which cannot be transported through pipelines without first being liquefied — a process that relies on naphtha. 

Historically, the United States had been the nearly exclusive supplier of this product to Caracas, using the opportunity to offload surplus light oil products from its refineries.

Following the imposition of U.S. trade restrictions, Venezuela sought alternative sources of naphtha, initially attempting to procure supplies from China and Iran. Ultimately, Russia emerged as the country’s main provider.

Analysts report that in 2024, the average daily supply of American naphtha to Venezuela was 57.6 thousand barrels per day. In contrast, total annual exports from Russia are projected to reach between 2.5 and 2.8 million tons, highlighting Moscow’s growing role in the Venezuelan energy sector.

Earlier this month, reports indicated that Taiwan has become the world’s largest importer of Russian naphtha. Since February 2022, Taiwan has purchased 6.8 million tons of Russian naphtha, valued at $4.9 billion, accounting for roughly 20% of total Russian exports of this petroleum product.

By Tamilla Hasanova