UPDATE 1-U.S. Treasury extends protection for Citgo from PDVSA creditors

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(Recasts to lead on U.S. protecting Citgo from creditors)

WASHINGTON, April 10 (Reuters) – The U.S. Treasury on Friday extended a measure preventing creditors of Venezuelan state oil company Petroleos de Venezuela (PDVSA) from seizing shares in the parent company of U.S. refiner Citgo, a PDVSA subsidiary, through July.

PDVSA pledged a majority stake in Citgo’s parent company as collateral for its 2020 bond, which is now in default. But the refinery is now under the control of Venezuela’s U.S.-aligned opposition, which has pushed Washington to prevent creditors from seizing the refinery to collect on the debt.

The administration of U.S. President Donald Trump has recognized Juan Guaido, the leader of the opposition-held National Assembly, as Venezuela’s rightful leader, and imposed sanctions on socialist President Nicolas Maduro’s government. Maduro, however, remains in power and in charge of PDVSA’s operations within Venezuela.

A previous measure protecting Citgo from seizure was set to expire on April 22.

Maduro calls U.S. sanctions illegal and accuses the opposition of trying to “steal” Citgo. (Reporting by Lisa Lambert and Luc Cohen Editing by Leslie Adler and Rosalba O’Brien)

This post was originally posted on Reuters: Company News – View Original Article

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About the Author

Have lived and invested in Venezuela full time for the last eight years and visited for each of twelve years prior to that. Studied and closely followed developments in Venezuela since 1996.