Trump Advances More Than $27 Billion in Saudi and Israeli Arms Deals
The U.S. State Department approved a $24.3 billion sale of 48 F-35 fighter jets to Saudi Arabia, including engines and support equipment. Separately, Poland's state-controlled refiner PKN Orlen reported a $230 million immediate loss after wiring an advance for a Venezuelan crude deal that collapsed amid sanctions, opaque payment flows and empty tankers.
Why It Matters
The F-35 approval marks a significant escalation in U.S. arms sales to Riyadh with implications for regional military balance and U.S.-Middle East policy. The Orlen episode highlights the operational and legal risks state firms face when circumventing sanctions and using unconventional payment channels for large commodity trades.
Key Facts
- U.S. State Department approval: $24.3 billion sale of 48 F-35s to Saudi Arabia
- Included with sale: 49 engines and support equipment
- Orlen contract date: November 29, 2023
- Orlen contract value: $345 million for six million barrels of Venezuelan crude
- Advance payment: $230 million wired within five days
The U.S. State Department approved a $24.3 billion foreign military sale of 48 F-35 aircraft to Saudi Arabia, together with 49 engines and associated support equipment, according to reporting. The approval makes Riyadh a major new customer for the fifth-generation fighters and represents one of the largest single-line U.S. weapons sales in recent years.
In a separate development, Poland's state-controlled refiner PKN Orlen suffered substantial losses tied to an attempted purchase of Venezuelan crude. Orlen's Swiss trading arm entered a $345 million contract on November 29, 2023, to buy six million barrels from Dubai-based Hannon International and transferred a $230 million advance within five days. The Swiss-unit chief, Samer Awad, had met Hannon's 25-year-old founder during the 2023 Abu Dhabi Formula 1 weekend, the reporting says.
U.S. sanctions had impeded dollar banking for Venezuela’s state oil company PDVSA, and brokers in Caracas reportedly received the advance as Tether stored on USB drives delivered in installments. One reported conversion of $135 million yielded $85 million in cash; the missing $50 million is subject to legal proceedings in the United Arab Emirates. Six chartered tankers that had been positioned off Venezuela remained empty and eventually departed, generating roughly $72 million in lost shipping costs. PDVSA maintains it did not load oil because it was never paid.
Polish prosecutors have tallied broader losses connected to the matter at 1.6 billion zloty (about $424 million) and on August 7 indicted three former Orlen executives in relation to roughly $378 million of those losses; the charges carry potential prison terms of up to 25 years. Prime Minister Donald Tusk publicly criticized the reporting as "a disgrace in front of the entire world."
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