VENEZUELA HANDING UNPRECEDENTED CONTROL OF ITS STATE-OWNED OIL ASSETS TO RUSSIA

Winchester, VA – The Stream is reporting that in an attempt to secure some sort of financial security for his struggling nation, Venezuela’s President Nicholas Maduro is handing unprecedented control of its state-owned oil assets to Russia. The Associated Press reports that Venezuela has $6 billion in debt payments coming due this year and only has $10 billion in cash. An ownership stake in up to 9 Venezuelan oil projects has been offered to Russia, and President Vladimir Putin may be able to use this offer to his advantage as a way to get around recent sanctions placed upon Russia for their meddling in the 2016 elections. Since early this year, the state-owned Petroleos de Venezuela has been negotiating with Russia’s largest state-owned oil company, Rosnef, which already owns a 49.9% stake in Venezuelan-owned, U.S.-based Citgo. Rosnef has been guaranteed to receive future oil shipments from Venezuela in exchange for $1 billion. Elias Matta, vice president of the energy commission at Venezuela’s elected National Assembly said to Reuters, “Rosneft is definitely taking advantage of the situation. They now this is a weak government; that it’s desperate for cash—and they’re sharks.” Rosneft cannot sell Venezuelan oil to American firms, but is selling the oil to intermediaries, who then go on to sell to the American refiners. Rosneft has agreed to relinquish its stake in Citgo in exchange for three additional Petroleos de Venezuela oil fields, two natural gas fields, and a fuel supply contract. It is estimated that Venezuelan oil shipments to Rosneft will be worth about $3.6 billion annually.