Orlen loses $424 million in failed Venezuelan oil deal with USDT

Polish state oil company Orlen is estimated to have lost $424 million as a result of a failed oil deal with Venezuela. The transactions were conducted through its Swiss trading arm OTS and involved the use of USDT payments. The Financial Times reported on the case, which has now led to Polish criminal proceedings and charges against former Orlen executives.

In brief:

• Orlen paid more than $230 million in advance through OTS for 6 million barrels of Venezuelan crude oil, most of which was never delivered.
• The failed deal led to high shipping costs, a criminal investigation in Poland and charges against former executives.
• USDT was used as a means of payment in the transactions.

Advance payment of $230 million produced no oil

Through its Swiss trading arm OTS, Orlen paid approximately $230 million in advance for 6 million barrels of Merey 16 crude oil from Venezuela. The majority of that oil was never delivered. As a result, costs rose further because of substantial shipping costs that were incurred in vain.

The total loss therefore amounts to an estimated $424 million. Orlen is a state-owned company, meaning that ultimately it is the Polish government and taxpayer that bear the consequences.

USDT plays a role in oil deal that leads to criminal investigation

A striking aspect of the case is the use of USDT, Tether’s stablecoin, as part of the payment structure. Stablecoins are increasingly used in international commodities trading where traditional banking channels are difficult to access, for example with countries such as Venezuela that are subject to international sanctions.

The Polish authorities have now launched a criminal investigation. Charges have also been filed against former Orlen executives. The Financial Times published the details of the case, which offers a rare insight into how state energy companies work with stablecoins on risky deals in sanctioned regions.