This isn’t the first time, and likely not
the last, that the Maduro regime in Venezuela has hocked national assets to
Russia in exchange for much-needed cash.
Reuters reports that Rosneft has lent PdVSA between $4 billion and $5
billion, in return for stakes in, or liens against, Venezuelan oil assets. Speaking
to CNBC, Steve Hanke, director of the Troubled Currencies Project at the Cato
Institute said, “If anything goes off the rails, the Russians will call the
tune and pick up the pieces. The Russians are very smart and know how to
structure air-tight deals in cases like this.” No matter how airtight the
contract between government-controlled Russian oil company and the
government-controlled Venezuelan one is, Citgo’s assets are located in the US.
A Trump administration attempting to deflect rumors that it is too cozy with
Moscow may take a hardline approach to any attempts by Rosneft to collect on
its collateral. More…
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