US Tightens Financial Blockade Against CITGO and PDVSA

The United States government, through its Treasury Department, has undertaken another measure of economic and financial pressure against Venezuela, after the hijacking of CITGO, by imposing restrictions on bond holders or creditors to access the return of their investments untrusted to the PDVSA 2020 Bond.

Hence, although the Venezuelan State maintains its commitment to investors, the White House is preventing bondholders from making any type of claim on CITGO shares. In this way, the hijacking of CITGO, the multi-million dollar subsidiary of the Venezuelan oil industry in US territory, is continued by the Joe Biden administration.

As expected, the US Treasury bans transactions involving the PDVSA 2020 bond for another year. In essence this is a measure stopping bondholders from claiming CITGO shares since the oil subsidiary was pledged as collateral and Venezuela stopped servicing debt because of sanctions https://t.co/6zhllTT3mB
— Venezuelanalysis (@venanalysis) January 20, 2022

According to information published by Reuters, “the US Treasury, via OFAC, issues a general license authorizing certain transactions related to PDVSA’s 8.5% bond on or after January 20, 2023.”

Venezuelan news outlet Venezuelanalysis.com put it in simple terms: “As expected, the US Treasury bans transactions involving the PDVSA 2020 bond for another year. In essence this is a measure stopping bondholders from claiming CITGO shares since the oil subsidiary was pledged as collateral and Venezuela stopped servicing debt because of sanctions.”

In other words, the US government has ratified the blocking of any financial or commercial operation from the offer of the aforementioned bond for a period of one year, starting from today, thus eliminating any possibility for PDVSA to repay that debt and opening the door for liquidation of CITGO that seems to be the main goal of the Washington regime.

What is the Treasury Department looking for?
In the last two years, countless complaints were raised by the Venezuelan government regarding the illegal sanctions imposed by the United States authorities. With these sanctions, the US Treasury Department is appropriating resources belonging to the people of Venezuela.

In addition, it is through the Treasury Department that the Washington administration delivers to former deputy Juan Guaidó’s gang the money that they have illegitimately appropriated through the alleged “interim government.”

For its part, Venezuela has ratified the defense of State assets, such as the company CITGO, as well as the Venezuelan resources abroad that governments allied with the White House stole, like Monómeros in Colombia. The government of Venezuela has also asserted that it will guarantee the economic security of those who invest in Venezuela’s investment options such as the PDVSA bonds.

Featured image: CITGO logo in one of its refineries in the United States. File photo.

(RedRadioVE) by José Manuel Blanco Díaz, with Orinoco Tribune content

Translation: Orinoco Tribune

OT/JRE/SC