The U.S. Treasury extended its protection of Citgo Petroleum from creditors until early July, amid ongoing legal matters regarding its ownership and finances. This follows the Trump administration’s actions affecting Chevron’s operations, as the Venezuelan opposition pushes for the safeguard of Citgo as a vital asset.
The U.S. Treasury Department has announced an extension of the license protecting Citgo Petroleum, which is owned by Venezuela, from creditors until early July. This extension is noted in a recent notice on the Treasury’s website and follows the Trump administration’s cessation of a significant license that allowed Chevron to operate in Venezuela.
Venezuela’s opposition has urged the U.S. to continue safeguarding Citgo, a critical asset abroad for the Venezuelan government, amid ongoing court proceedings concerning the auction of its parent company’s shares to settle creditor claims. The Treasury’s Office of Foreign Assets Control will need to approve any new ownership once the auction concludes, determining who will manage Citgo’s operations.
In light of these developments, opposition leaders have also requested the Trump administration to halt any financial support for President Nicolas Maduro, whose elections the U.S. does not recognize. This prompted the cancellation of a past authorization allowing Chevron to export Venezuelan oil since 2022.
The newly issued license replaces an earlier one from November and suspends all transactions linked to an outstanding bond from Citgo’s parent, PDVSA, until July 3. This bond has been in default, forcing creditors to pursue claims against Citgo and associated U.S.-based companies in court.
Maduro’s administration has accused the U.S. of attempting to seize Citgo, especially since the U.S. has not acknowledged his electoral victories since 2018, which has resulted in oil sanctions affecting Venezuela over the last six years.
The U.S. has extended protection for Citgo Petroleum from creditors amid ongoing legal proceedings related to its ownership and past debts. With the new license in place, all transactions concerning a significant bond are halted until early July, while the Venezuelan opposition continues to push for safeguarding this key asset. These developments occur within a broader context of U.S. sanctions and diplomatic tensions with the Maduro government.
Original Source: www.tradingview.com
