Russia, Venezuela discuss Citgo collateral deal to avoid U.S. sanctions - sources

[Eugene]

Source: Reuters

#WORLD NEWS
JULY 20, 2017 / 4:41 PM / AN HOUR AGO

Exclusive: Russia, Venezuela discuss Citgo collateral deal to avoid U.S. sanctions - sources

Alexandra Ulmer and Marianna Parraga

CARACAS/HOUSTON (Reuters) - Russia's top oil producer Rosneft is negotiating to swap its collateral in Venezuelan-owned, U.S.-based refiner Citgo for oilfield stakes and a fuel supply deal - a move to avoid complications from U.S. sanctions, two sources with knowledge of the negotiations told Reuters.

State-owned Rosneft holds a 49.9 percent stake in Citgo as collateral for a loan last year of about $1.5 billion to the OPEC nation, which is reeling from low oil prices and a severe recession.

The arrangement with Venezuela's state-owned oil firm, PDVSA, has drawn fire from U.S. senators who do not want Russia in a position to own a substantial stake of U.S.-based energy assets in potential violation of existing economic sanctions.

The negotiations took on more urgency this week, one of the sources told Reuters, when U.S. President Donald Trump threatened to impose "strong economic actions" on Venezuela unless embattled leftist President Nicolas Maduro aborts plans to establish a new legislature with powers to rewrite the nation's constitution.

-snip-

Read more: http://www.reuters.com/article/us-oil-rosneft-citgo-exclusive-idUSKBN1A52RN

[GatoGordo]

1. Rosneft, et alli, are in full panic mode

If the US decides to embargo any company or nation doing business with the dictator Maduro, it will in the short term benefit the illiterate puppet (as is his perpetual excuse, the vile United States). Maduro is no leader. He is only doing the bidding of the people behind the curtain who desire another Cuban style dictatorship in the Western Hemisphere.

However, if Venezuelan oil is purchased not with dollars, but with food and medicine (of which there is very little in Venezuela), the tables will turn on Maduro.

Additionally, if any "deals" are to be made between Maduro and Uncle Sam, they will be required to pass muster at the National Assembly first. Which is how it is supposed to be... not that Maduro and his sycophants keep them from throwing the people of Venezuela under the bus.

The ball is in Maduro's court.