The U.S. Treasury has extended protections for Venezuela-owned Citgo until July. This decision follows actions against Chevron’s operations in Venezuela, as opposition leaders urge continued safeguarding of this key asset amid bankruptcy claims. The administration’s stance on President Maduro’s financing has also evolved, resulting in further restrictions on crude exports.
The U.S. Treasury Department has extended the license that protects Citgo Petroleum, a refinery owned by Venezuela, from creditors until early July. This decision follows the revocation of a significant license for Chevron to operate in Venezuela by the Trump administration. As U.S. courts convene this year to auction shares of Citgo’s parent company to satisfy creditor claims, the opposition in Venezuela has urged the U.S. to continue safeguarding Citgo, which is considered a vital asset abroad.
The new license, which modifies an earlier authorization from November, halts all transactions related to a bond issued by Citgo’s parent company PDVSA, which matured in 2020, until July 3. PDVSA has defaulted on this and several other bonds, leading creditors to enforce claims in U.S. courts against Citgo and its affiliated entities based in the United States.
Additionally, Venezuelan opposition leaders have requested that the U.S. cease any financial support to President Nicolas Maduro, whose legitimacy has been disputed by Washington since his re-elections, resulting in sanctions. This led to the recent cancellation of an authorization allowing Chevron to export Venezuelan oil since 2022. Maduro’s government has accused the U.S. of attempting to seize Citgo amid ongoing tensions and sanctions against the country post-2018.
The U.S. Treasury has extended protections for Citgo Petroleum amidst ongoing economic pressure on Venezuela. This move is part of broader measures impacting Venezuelan oil production and opposition to President Maduro’s government. As U.S. courts move forward, the future of Citgo remains uncertain, particularly with rising creditor claims and legal proceedings.
Original Source: www.tradingview.com
