A very important story not covered by most media, at LAHT:
US Senate Joins House in Call for Review of Venezuela PDVSA Deal with Russia’s Rosneft over Citgo (emphasis added)
In December LAHT discovered and publicized that PdVSA had mortgaged 49.9% of CITGO as collateral for a loan it took last year from Rosneft. Rosneft could also hold other PdVSA debt that would give it a majority stake in CITGO.
Rosneft, a majority Russian government-owned oil company run by a former deputy of Russian President Vladimir Putin, loaned Venezuela $1.5 billion for the 49.9% share of Citgo in the U.S. (just under the majority change of control that would have to be reported).
Venezuela’s current economic crisis is undermining PdVSA’s financial stability, increasing the possibility of default.
CITGO operates a notable portion of the nation’s energy infrastructure with 48 petroleum product terminals in 20 states, three refineries in Texas, Louisiana and Illinois, three fully-owned Texas pipelines, and six partially-owned pipelines.
In response to this,
Six prominent Senate leaders have now joined House Foreign Affairs leaders in calling upon U.S. Treasury Secretary Stephen Mnuchin — as head of the Committee on Foreign Investment in the United States (CFIUS), a panel comprised of cabinet-level officials charged with assessing such transactions for threats to national security — to review the review the Russian government controlled Rosneft’s transaction for half of Citgo in the U.S.A.
LAHT has the documents at the above link.
Related, also at LAHT:
US Court Upholds $1.4 Billion Judgment Against Venezuela for Crystallex Expropriation. In the documents, something bondholders should be aware of,
“Crystallex is preparing to file a motion seeking an order … that Crystallex may seek to attach assets to aid in the execution of its judgment. Once that happens, Crystallex intends to seek an order directing the shares of PDVH held by Venezuela’s alter ego, PDVSA, be sold to satisfy Crystallex’s judgment.”
Venezuela: Crystallex Sues Russia’s Rosneft & PDVSA Bondholders Over CITGO
Venezuela Admits Mortgaging Citgo in the USA to Russia, Goes on Attack