Poland’s state-controlled oil refiner Orlen is in the news for all the wrong reasons.
Reports from the Financial Times reveal that the Polish oil company paid a substantial amount in advance for Venezuelan oil, but the promised oil never materialized, resulting in a loss of hundreds of millions of dollars.
The Role of Dubai-based Intermediaries
Orlen operates through subsidiaries like Orlen Trading Switzerland. In late 2023 and early 2024, the subsidiary was in the process of purchasing Venezuelan crude oil. Taking advantage of a temporary relaxation in U.S. sanctions on Venezuelan oil transactions, Orlen Trading Switzerland engaged with two Dubai-based intermediaries for the purchase.
Transactions were facilitated through the conversion of funds into USDT and intermediaries based in Dubai.
The Impact of USDT Payments
Over $132 million in USDT was reportedly transferred through physical USB drives. A conversion of $135 million resulted in only $85 million, with a $50 million shortfall locked in a UAE court. Additionally, around $72 million was spent on shipping costs for tankers that never received the promised oil.
Hannon International Middle East DMCC received approximately $230 million, while Horizon Global received around $100 million. Unfortunately, these payments were made in advance of the oil deliveries that never materialized.
The Influence of U.S. Sanctions
Venezuela’s oil industry has been heavily impacted by U.S. sanctions. While there was a temporary easing of restrictions in October 2023, sanctions were tightened again in April 2024. Orlen had already made payments to Dubai-based intermediaries by this time, leading to a significant loss.
In response to the situation, Polish prosecutors indicted three former Orlen managers in August 2026 for negligent supervision.
Continued Dominance of USDT
Despite the challenges faced in this transaction, Venezuela’s USDT trading on Binance P2P saw a record of $1.4 billion between mid-June and mid-July 2026, with an average daily volume of $44 million. USDT remains a leader in the stablecoin market in terms of transaction volume.
Key Takeaways
- Orlen suffered significant financial losses due to payments made for undelivered crude oil.
- The temporary easing of U.S. sanctions on Venezuelan oil transactions played a role in Orlen’s dealings.