The U.S. Treasury Department has extended the protective license for Citgo Petroleum, owned by Venezuela, until early July. This action aims to protect the refiner from creditors while ongoing legal proceedings unfold regarding its parent company’s shares. The move is part of broader efforts to counteract the Venezuelan government under President Maduro.
The U.S. Treasury Department has extended the protective license for Venezuela-owned Citgo Petroleum until early July. This extension aims to shelter the refiner from creditors amidst legal proceedings regarding auctioning its parent company’s shares. The decision was announced via a notice on the Treasury’s website on Thursday.
This action by the U.S. follows the termination of a critical license for Chevron to operate in Venezuela, which was previously facilitated by the Trump administration. Venezuela’s opposition has been urging the U.S. to ensure Citgo remains protected, as it is a significant asset for the country, particularly during ongoing court processes to address creditors’ claims.
The Treasury’s Office of Foreign Assets Control is tasked with approving any new ownership of Citgo’s shares following the auction. Opposition leaders have also requested the U.S. halt any financial support to President Nicolas Maduro, whose elections are unrecognized by Washington. Consequently, this led to the cancellation of an authorization permitting Chevron to export Venezuelan crude starting this month.
The recently issued license, which replaces an authorization from early November, suspends all transactions related to a 2020 bond issued by Citgo’s parent company, PDVSA, until July 3. PDVSA had defaulted on that and other bonds, prompting bondholders to seek compensation through U.S. courts by targeting Citgo and its associated entities.
Maduro’s government has claimed that the U.S. is attempting to seize Citgo. The U.S. has not recognized his election victories since 2018, resulting in a series of oil sanctions that have affected Venezuela for the past six years.
In summary, the U.S. has extended the protective license for Citgo Petroleum amidst ongoing legal challenges related to creditor claims. This extension reflects the geopolitical complexities surrounding Venezuela’s leadership and its substantial foreign assets. The situation remains fluid as U.S. authorities work to navigate the implications of these protections and the broader sanctions against Maduro’s government.
Original Source: www.tradingview.com
