The U.S. Treasury Department has extended a license protecting Venezuelan-owned Citgo Petroleum from creditors until early July. This action follows changes in the U.S. stance towards oil operations in Venezuela, particularly regarding Chevron. The extension aims to aid the Venezuelan opposition while complications arise from PDVSA’s defaults on bonds and ongoing legal claims in U.S. courts.
The U.S. Treasury Department has announced the extension of a license that safeguards Citgo Petroleum, a Venezuelan-owned refinery, from creditors until early July. This decision follows the termination of a vital operating license for Chevron by the administration of President Donald Trump. In this context, the Venezuelan opposition has urged the U.S. to continue offering protection for Citgo, recognizing it as a significant asset of Venezuela during the ongoing legal proceedings concerning the auction of its parent company’s shares in U.S. courts.
To proceed with the auction, any potential new owners of Citgo’s shares must receive approval from the Treasury’s Office of Foreign Assets Control. Opposition leaders have also advocated for the Trump administration to cease any financial support for President Nicolás Maduro, a move that has resulted in the withdrawal of Chevron’s authorization to export Venezuelan crude oil, which was granted in 2022.
The newly issued license effectively puts all transactions concerning a bond that was due in 2020 and issued by Citgo’s parent company, PDVSA, on hold until July 3. PDVSA had defaulted on this bond, prompting numerous creditors to seek compensation through U.S. courts by targeting Citgo and its related entities. President Maduro’s administration has accused the United States of attempting to confiscate Citgo, while the U.S. has not recognized the legitimacy of his re-elections since 2018 and has imposed oil sanctions on Venezuela over the past six years.
The U.S. has taken steps to protect Citgo Petroleum from creditors, extending a crucial license that prevents the auction of its shares amid ongoing financial disputes. This move aligns with the U.S. government’s strategic interests in maintaining leverage over the Venezuelan government and responding to the opposition’s requests. The implications of this protection may significantly influence the future management of Citgo as well as the broader U.S.-Venezuela relations.
Original Source: www.tradingview.com
