US expresses concern about Iran-Venezuela fuel trade
18 May 2020
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A senior Pentagon commander said today that growing energy ties between Tehran and Caracas pose a challenge to the US but downplayed the possibility of intercepting Iranian fuel shipments to Venezuela.
"You have to ask yourself what interest Iran has in Venezuela, where we have seen recent indications of Iranian military and state support," US southern command chief, Admiral Craig Faller, said at an event hosted by the Florida International University. "It is to gain a positional advantage in our neighborhood as a way to counter US interests."
Five fuel tankers loaded in Iran are currently heading out of the Mediterranean toward Venezuela, shipping data indicate. The first tanker, the Iranian-flagged Fortune, is due to arrive at a Venezuelan port early next week.
The shipments follow a bevy of Iranian flights ferrying catalyst and Chinese equipment into Venezuela to help restart state-owned PdV's 635,000 b/d Amuay and 305,000 b/d Cardon refineries.
The refinery work and new gasoline supplies would help Venezuela claw out of a severe fuel shortage. Both Iran and Venezuela are targets of US sanctions.
Faller, who commands the US military forces in South America, declined to comment directly on the fuel shipments, while adding that the US views Iranian activity in Venezuela "with concern."
The shipments lay bare that Venezuelan president Nicolas Maduro and his late predecessor Hugo Chavez "wrecked the oil industry and ruined the once prosperous country," Faller said.
In recent days, Iran has warned the US against trying to disrupt the shipments to Venezuela. "The delivery of these tankers carrying gasoline was ordered by the Venezuelan government, and it relies on the free will of countries to engage in traditional international exchanges. We want to ensure the safety of these cargoes from the risk of marine robbery/piracy by the US, which it has engaged in in the past," Iranian government spokesman Ali Rabiei said today.
"Although it is still to early to comment on what Iran's response would be to a possible theft by the US, if they make such a mistake, we will leave all options open and take the appropriate action to protect maritime freedom and increase the price of breaking the law," he added.
The shipments come against the backdrop of a recent build-up of US naval assets in the Caribbean and enhanced cooperation between the Pentagon and Venezuela's neighboring states, led by Colombia.
The enhanced naval forces are focused on combating transnational criminal organizations and drug trafficking, Faller said. "This is all about getting after a persistent threat that has begun before the current Covid crisis."
President Donald Trump in March ordered the US military to step up counter-trafficking efforts, a move that was coupled with criminal indictments against Maduro and other Venezuelan officials over alleged involvement in drug trafficking.
Faller downplayed the possibility of military conflict in the Caribbean. "With respect to Venezuela, our focus has been to share intelligence, trying to figure out what Maduro and his cronies are up to." The Pentagon is also helping plan for the "day after" democracy is restored in Venezuela, he said.
Faller said the US has not changed its policy of achieving a government transition in Venezuela by means of economic and diplomatic pressure, and denied involvement in a recent incursion with participation by former Venezuelan soldiers and two retired US special forces personnel. "The US southern command and the US government have no connection to that botched event, zero," Faller said.
Statements on Venezuela from US military commanders have tended to be less confrontational than remarks by Trump's national security officials.
Washington has few available tools to thwart Iranian energy cooperation with Venezuela, as nearly all Iranian and Venezuelan oil industry entities are already on the US sanctions list. The US has also threatened to penalize shippers and port authorities that knowingly assist any tanker carrying Iranian oil and crude products.
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