Russia could soon take over a chunk of U.S. oil infrastructure
https://news.vice.com/story/russia-oil-rosneft-infrastructure
Rosneft, Russias state-controlled oil company, could end up with a majority stake in Texas-based Citgo after the entity that owns Citgo, Venezuelas state-owned oil and natural gas company PDVSA, used almost half of Citgos shares as collateral for a loan from Rosneft.
In the midst of Venezuelas ongoing economic crisis, PDVSA is reportedly in danger of defaulting on that loan. That means Rosneft, a company specifically named in U.S. sanctions levied against Russia after its 2014 annexation of Crimea, is poised to become one of the biggest foreign owners of American oil refining capacity.
Rosneft is headed by Igor Sechin, a powerful crony of Russian President Vladimir Putin, and is often seen as a proxy for the Kremlins energy policies.
PDVSA put up as collateral about 49.9 percent of Citgo shares in exchange for a $1.5 billion loan from Rosneft in December. It had used the other half of Citgo as collateral for a bond deal two months before that. Should PDVSA default on its Russian loan, the Russians could relatively easily end up with a majority stake in Citgo by acquiring more PDVSA bonds on the open market.
While the exact details and time-frame of the Rosneft loan remain murky, PDVSA successfully made $2.2 billion in payments on notes that matured April 12, sending ripples of relief through financial markets.