Washington Ready to Block Potential Russian Takeover of U.S. Oil Firm

The Trump administration is ready to block a Russian state-owned oil giant from gaining control of critical energy assets in the U.S. owned by Venezuela. senior American officials say. a move that likely would feed tensions between Washington and Moscow. the Wall Street Journal reported.
 Petroleos de Venezuela SA offered Russia’s Rosneft nearly half of the shares of its U.S.-based subsidiary Citgo Petroleum Corp. as collateral for U.S. $1.5 billion in loans the Russian firm made in 2016 to help prop up cash-starved PdVSA and its owner. the Venezuelan government.
 The planned move comes after some U.S. lawmakers. worried the Russian oil company could gain a controlling interest in a company that represents roughly 5% of U.S. crude-oil refining capacity. urged the Trump administration in June to use powers granted under national security laws to prevent the deal from happening.
 Besides arranging interests in major oil-producing operations in Venezuela. President Nicolas Maduro’s government has also promised future crude deliveries as collateral and interest payments. the two people said.

About core

Check Also

Global Oil Production could Plunge 30% this Decade

Saudi Arabia said global oil production could drop 30 per cent by the end of …

Leave a Reply

Your email address will not be published. Required fields are marked *