The U.S. Treasury has extended a license protecting Citgo Petroleum from creditors until July. This decision follows the revocation of a Chevron license and underlines pressures from Venezuela’s opposition leaders to stop financial support for President Maduro. The new license freezes transactions related to a 2020 bond until July 3, amid ongoing creditor claims against Citgo and PDVSA.
The U.S. Treasury Department has extended a license that protects Citgo Petroleum, owned by Venezuela, from creditors until early July. This decision was announced via a notice on the Treasury’s website, indicating a shift in policy in light of recent developments in the region. The extension follows the Trump administration’s cancellation of a key license that permitted Chevron to operate in Venezuela.
Venezuela’s opposition groups have urged the U.S. to maintain Citgo’s protections, especially as a U.S. court prepares to auction its parent company’s shares to compensate creditors. Following the auction, any new stakeholders will require approval from the Treasury’s Office of Foreign Assets Control to operate Citgo.
Additionally, Venezuelan opposition leaders have requested the Trump administration to cease any financial support to President Nicolás Maduro, whose re-elections have not been recognized by Washington. Consequently, this has led to the revocation of an authorization that allowed Chevron to export Venezuelan crude oil since 2022.
The newly issued license, which replaces one provided in November, temporarily halts transactions related to a 2020 bond issued by Citgo’s parent company, PDVSA, until July 3. PDVSA’s default on this and other bonds has resulted in legal actions from bondholders seeking compensation through U.S. courts, targeting Citgo and its associated U.S. companies.
In summary, the U.S. Treasury’s extension of protection for Citgo aims to shield the Venezuelan refiner from creditor actions amidst ongoing legal proceedings. The situation highlights the broader implications of U.S.-Venezuelan relations, particularly concerning sanctions and financial support to the Maduro administration. The future management of Citgo will heavily depend on the outcomes of upcoming legal auctions and governmental approvals.
Original Source: www.tradingview.com
