The U.S. Treasury has extended protection for Citgo Petroleum until early July to prevent creditor actions amid ongoing legal proceedings. This decision follows the revocation of a license for Chevron and reflects the U.S. stance on Venezuelan leadership and asset management.

The U.S. Treasury Department has announced an extension until early July of the license that safeguards Venezuela-owned Citgo Petroleum from creditors. This announcement occurred after the Trump administration revoked a critical license previously permitting Chevron to operate in Venezuela.

The Venezuelan opposition has requested that the U.S. maintain Citgo’s protection, considering it a vital asset as a U.S. court moves forward with an auction of shares belonging to Citgo’s parent company in order to satisfy creditor claims.

The Treasury’s Office of Foreign Assets Control will need to approve any new owners of the shares post-auction, with those owners taking over the operation of Citgo’s facilities. Furthermore, opposition leaders have urged the Trump administration to cease any financial support for President Nicolas Maduro due to unrecognized electoral victories, leading to Chevron’s operational authorizations being terminated this month.

The new license, which replaces one from early November, halts all transactions related to Citgo’s bonds maturing in 2020 until July 3. The Venezuelan state oil company PDVSA, Citgo’s parent, defaulted on its bonds, resulting in numerous creditors seeking restitution through U.S. courts against Citgo and its U.S. subsidiaries.

Maduro and his government have accused the U.S. of attempting to illegally acquire Citgo amidst ongoing sanctions imposed since 2018, following the lack of recognition of his electoral legitimacy by Washington.

The U.S. Treasury Department has taken significant steps to extend protections for Citgo, a crucial asset for Venezuela, in light of ongoing legal and political ramifications. This extension will provide temporary relief from creditor actions as the Venezuelan opposition continues to navigate the complex landscape involving President Maduro’s administration. The strategic approach by the U.S. highlights its broader stance towards Venezuela’s political situation and the management of its natural resources.

Original Source: www.tradingview.com

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