Tuesday, 24 May, 2022

US extends protection of Venezuelan oil unit Citgo

US extends protection of Venezuelan oil unit Citgo

The US Treasury on Thursday extended by one year a rule that shields Citgo, a US-based unit of Venezuela's state-owned oil company PDVSA.

The Houston-based company has been controlled by parties since early 2019.

Citgo had been used by the government as collateral in various loans. It was also designated as an asset to offset defaults in cases decided in international and US courts.

Now, as part of the sanctions against PDVSA, the Treasury has extended by a year a decree which bars Citgo from being sold off to creditors.

Oil-rich Venezuela's economy is crumbling under the rule of leftist President Nicolas Maduro and millions have fled the country. The US has imposed punishing sanctions on the government to choke off access to cash from oil exports.