Venezuela Denounces US Court Ruling on Citgo Sale

Post by : Mina Rahman

Venezuelan Vice President and Petroleum Minister Delcy Rodríguez lambasted a US court’s ruling that allows the sale of Citgo, deeming it “fraudulent” and “forced.” The transaction, involving the parent company of Citgo being sold to Amber Energy, linked to Elliott Investment Management, is valued at $5.9 billion.

Citgo, headquartered in Houston and a subsidiary of Venezuela’s state-owned PDVSA, is battling creditor claims surpassing $20 billion. Among the creditors is the Canadian company Crystallex, which secured a $1.2 billion judgment in a 2019 case tied to the Las Cristinas mine's nationalization.

This sale comes in light of Venezuelan President Nicolás Maduro's accusations against the US for utilizing military means in the Caribbean to undermine Venezuela’s oil wealth. Although Venezuela boasts the world's largest proven oil reserves, it has exported a mere $4.05 billion in crude oil in 2023 due to persistent sanctions.

Maduro has urged OPEC nations to resist what he characterizes as increasing US threats, yet analysts remain skeptical about the level of support he will obtain. Venezuela's oil exports have increasingly pivoted from the US to countries such as China, India, and Cuba due to trade barriers and sanctions.

PDVSA continues to face challenges related to underinvestment, declining infrastructure, poor management, and the long-standing impact of global sanctions.