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China’s Sinopec Sues Venezuela in Sign of Fraying Relations

Sinopec USA, a subsidiary of the Chinese oil and gas conglomerate, has sued Venezuela’s state oil company PDVSA in a U.S. court, claiming it never received full payment for an order of steel rebar.

The lawsuit asks for $23.7 million for breach of contract and conspiracy to defraud. The legal action signals a split with another of Venezuela’s biggest backers as the cash-strapped country seeks to restructure some $60 billion in debt in a landscape of low oil prices and production.

The complaint suggests “patience is getting really thin at this point,” said Mark Weidemaier, law professor at the University of North …read more