Russia Uses Its Oil Giant, Rosneft, as a Foreign Policy Tool
- 7 years ago
Russia Uses Its Oil Giant, Rosneft, as a Foreign Policy Tool
President Nicolás Maduro of Venezuela was all smiles this month on a visit to Moscow seeking fresh
financial backing, thanking Vladimir V. Putin “for your support, both political and diplomatic.”
Moscow, through the state oil giant Rosneft, is trying to build influence in places where the United States has stumbled or power is up for grabs.
Last year, Rosneft took a 49.9 percent stake in Citgo, the Venezuelan state oil company’s refining
subsidiary in the United States, as collateral for a $1.5 billion loan to the Venezuelan company.
Over the past three years, Russia and Rosneft have provided Caracas with $10 billion in financial assistance,
helping Venezuela stave off default at least twice under the weight of as much as $150 billion in debt.
“They really give the Russian government unbelievable leverage on questions of importance to the United States.”
The new push by Rosneft follows a clampdown on Russia.
Rosneft is negotiating with the Venezuelan state oil company to trade its collateral in Citgo for stakes in oil fields, as a way to gain more reserves at bargain basement prices
and avert any sanctions or other legal issues with Washington.
In April, Rosneft went further, providing a $1 billion advance payment for crude oil produced by
the state oil company, crucial aid for it to make nearly $3 billion in payments to bondholders.
President Nicolás Maduro of Venezuela was all smiles this month on a visit to Moscow seeking fresh
financial backing, thanking Vladimir V. Putin “for your support, both political and diplomatic.”
Moscow, through the state oil giant Rosneft, is trying to build influence in places where the United States has stumbled or power is up for grabs.
Last year, Rosneft took a 49.9 percent stake in Citgo, the Venezuelan state oil company’s refining
subsidiary in the United States, as collateral for a $1.5 billion loan to the Venezuelan company.
Over the past three years, Russia and Rosneft have provided Caracas with $10 billion in financial assistance,
helping Venezuela stave off default at least twice under the weight of as much as $150 billion in debt.
“They really give the Russian government unbelievable leverage on questions of importance to the United States.”
The new push by Rosneft follows a clampdown on Russia.
Rosneft is negotiating with the Venezuelan state oil company to trade its collateral in Citgo for stakes in oil fields, as a way to gain more reserves at bargain basement prices
and avert any sanctions or other legal issues with Washington.
In April, Rosneft went further, providing a $1 billion advance payment for crude oil produced by
the state oil company, crucial aid for it to make nearly $3 billion in payments to bondholders.