CARACAS.- The regime of Nicolas Maduro announced that it will take judicial action against any entity or person participating in the forced sale of Citgothe subsidiary of the state oil company Petroleos de Venezuela (PDVSA) in United States. This announcement comes in the midst of a complex litigation in which international creditors seek to recover more than $20 billion owed by the Caribbean nation, through the sale of Citgo assets.
Delcy Rodríguez, vice president of the Maduro regime, stated that they do not and will not recognize the sale of Citgo, describing the process as a violation of economic guarantees and due legal process. Additionally, she noted that they are willing to take legal action against those who purchase, facilitate the purchase or deal in Citgo assets.
Citgo’s situation became complicated when a US court authorized its sale to satisfy creditors’ demands. However, a US government order has temporarily suspended the operation, preventing bondholders from taking control of 50.1% of Citgo shares until at least August.
Maduro blames opposition leaders, particularly Juan Guaidó, for the possible loss of Citgo. Guaidó was recognized by the United States as interim president of Venezuela between 2019 and 2023, after ignoring Maduro’s re-election.
Despite having lost control of Citgo, the Maduro regime issued PDVSA bonds in 2020 that offered 50.1% of the subsidiary’s shares as collateral.
Some creditors argue that PDVSA is an “alter ego” of the Venezuelan state, which would allow its assets to be used to pay national debts. The $20 billion claimed includes bond debts and compensation for expropriations of oil and mining assets in Venezuela.
The Venezuelan regime alleges that both PDVSA and Venezuela have been excluded from the judicial process and prevented from defending their rights in US courts, further aggravating the situation.
Source: With information from AFP
