AlwaysFree: European Lenders Exit Ecuadorian Oil Exports

ING, Credit Suisse, and BNP Paribas have decided to stop financing Ecuadorian oil exports after pressure from environmentalists and indigenous people to protect the Amazon rainforest. Previously, advocacy groups Amazon Watch and Stand.earth released a report showing that six European lenders were major financiers of oil trade from Ecuador to the US. Native tribes are battling to prevent further fossil fuel exploration in their territory.

According to the report, the three banks, along with Natixis, UBS, and Rabobank, are the main financial backers of Ecuadorian oil worth about $10 billion to the US over the last ten years. A representative welcomed the banks’ commitment to exit Ecuador’s oil industry. Climate campaigners have accused the lenders of using double standards for publishing climate pledges while continuing support to the oil sector.

Ecuador is a mid-sized oil producer with a production capacity of around 0.5 million bpd. Most of its oil revenues are used to pay the country’s debt to China. The banks’ departure will likely force oil traders to find other lenders to back their transactions.

Tags: AlwaysFree,Americas,Crude Oil,English,Latin America