Rosneft Loans To Venezuela: Default Would Involve Citgo In U.S. 04/05/17 •lweb.es/f2757 •bit.ly/2oKx3Z9
Venezuela’s economy is in slow collapse, accelerated by the fall in oil prices; oil service companies such as Schlumberger are cutting back activities because they are not being paid; and Russia has become the leading foreign oil investor. Russia is also the country’s key financier. Venezuela has pledged half the shares of its subsidiary Citgo – an important US refiner and fuel-retailer – as collateral for the loans from Russia’s Rosneft. If Venezuela were to default, the prospect of the Russian state firm owning American refineries would be political dynamite in Washington.