• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 13 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 8 days What fool thought this was a good idea...
  • 11 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 6 days A question...
  • 11 days They pay YOU to TAKE Natural Gas
  • 17 days The United States produced more crude oil than any nation, at any time.

U.S. Treasury: Citgo Assets Won’t Be Claimed

The U.S. Department of Treasury has blocked any attempts by PDVSA compensation claimants and creditors to get their hands on the Venezuelan company’s U.S. subsidiary, banning all moves to “transfer or otherwise alter or affect property.”

Reuters quoted the Treasury as saying that exceptions would be made only for parties with a special license. This pretty much pours cold water on the plans of at least one company to get what the court awarded it in one of several nationalization lawsuits against Venezuela’s government.

Canadian miner Crystallex was awarded $1.4 billion in compensation for the nationalization of its Venezuelan assets and has repeatedly tried to seize PDVSA assets to enforce the court’s decision, but without any luck.

The most attractive among these assets is, of course, Citgo, but the company is incorporated in the United States and its assets now seem to be at the disposal of the Venezuelan opposition with Washington’s blessing as it increases the pressure on PDVSA and the Maduro government by freezing its assets in the United States and setting up a new account for Venezuelan crude import payments.

At the same time, however, PDVSA had pledged half of Citgo as collateral for a loan Rosneft extended to the troubled Venezuelan state company. This fact raised hackles in Washington at the time the deal was struck, but the worry that a Russian company could become owner of Citgo soon dissipated thanks to a number of mechanisms to prevent that from happening.

The other half of Citgo’s shares are also unavailable to compensation claimants: these were put up as collateral for a bond that matures next year. The Venezuelan government has been unable to make the latest payment on this bond because of U.S. sanctions and U.S.-backed Guaido does not have the funds to make such a payment.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News