Polish state-owned energy company Orlen lost at least $424m over a deal to buy Venezuelan oil involving cryptocurrency payments, according to a Financial Times investigation.
In November 2023, Orlen’s Swiss subsidiary, Orlen Trading Switzerland (OTS), signed a $345 million contract with Dubai-based Hannon International for about six million barrels of Merey 16 crude.
OTS paid Hannon a $230 million advance and expected to make a profit of between $25 million and $30 million.
Venezuela accepted payment only in USDT, a cryptocurrency pegged to the US dollar. Hannon transferred the funds to Dubai-based intermediaries for conversion, but part of the money did not reach the seller, the FT reports.
The oil was not delivered, and three supertankers chartered by Orlen remained for weeks near the Jose terminal.
Orlen later received about 500,000 barrels of fuel oil before terminating the original contract on 28 March. The company estimates that transport costs related to its dealings with Hannon reached $72 million.
Orlen is seeking to recover the $230 million advance through arbitration.
The Warsaw prosecutor’s office is also investigating former Orlen executives over alleged inadequate oversight of OTS funds.
The Polish government estimates that the company’s total losses were at least 1.6bn zlotys ($424 million), including transport, legal and other costs.
The FT described the affair as one of the biggest corporate scandals in Poland’s history.
By Aghakazim Guliyev
