Left Menu
Development News Edition

Judge approves sale of Venezuela's prized US-refineries

PTI | Caracas | Updated: 23-05-2020 07:00 IST | Created: 23-05-2020 07:00 IST
Judge approves sale of Venezuela's prized US-refineries

A US judge on Friday approved moving forward with the sale of Venezuela's prized US-based CITGO refineries, allowing a Canadian mining company to collect USD 1.4 billion it lost in a decade-old takeover in the South American nation by the late socialist President Hugo Chávez. The ruling strikes a blow to Venezuela's opposition led by Juan Guaidó, which was banking on profits from the Houston-based company to finance the crisis-torn nation's recovery — if they were ever able to force President Nicolás Maduro from power.

The order by Chief Judge Leonard P Stark of US District Court in Delaware follows a decision by the US Supreme Court on Monday that upheld an earlier ruling by Stark authorizing CITGO's liquidation. Before moving ahead with CITGO's sale, the bankrupt Canadian mining company Crystallex must first get a license from US Treasury officials, which had temporarily shielded Venezuela's opposition from losing CITGO.

Crystallex and attorneys for Venezuela also have to agree on how it will sell CITGO, Stark's latest ruling said. Chavez took over the gold mining firm's Venezuela concession and the local operations of other international companies as part of his Bolivarian revolution that has left Venezuela spiralling into deepening economic and political turmoil.

Crystallex, which went bankrupt, sued Venezuela to recover its lost investment in Venezuela. The case is unique, because the court allowed Crystallex to attach assets of CITGO's parent company, the Venezuelan state-run oil firm PDVSA, finding that Venezuela had erased the lines between the government and its oil firm. Venezuela has owned CITGO since the 1980s as part of PDVSA. It has three refineries in Louisiana, Texas and Illinois in addition to a network of pipelines crisscrossing 23 states. It provides between 5% and 10% of US gasoline.

Guaidó, the head of Venezuela's opposition-led National Assembly, claimed presidential powers in early 2019, vowing to end Maduro's rule and two decades of socialist leadership. After the Trump administration recognized Guaidó as Venezuela's legitimate leader, US courts granted approval to a board appointed by the opposition to take control of CITGO, valued at an estimated USD 8 billion. However, more than a year later, Maduro remains in power, with firm military support at home and backing from key international allies including Russia, China and Iran.


TRENDING

OPINION / BLOG / INTERVIEW

Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Videos

Latest News

Trump questions render Trudeau speechless for 21 seconds

Canadian Prime Minister Justin Trudeau said Tuesday that Canadians are watching whats unfolding in the United States with horror and consternation and he paused for 21 seconds when asked about US President Donald Trump and the use of tear g...

U.S. CDC reports total of 1.8 million coronavirus cases

The U.S. Centers for Disease Control and Prevention CDC on Tuesday reported a total of 1,802,470 cases of the new coronavirus, an increase of 14,790 cases from its previous count, and said that the number of deaths had risen by 761 to 105,1...

Senate Democrats ready bill condemning Trump on protesters

Senate Democrats on Tuesday readied a measure condemning President Donald Trump for the tear-gassing of peaceful protesters at the White House, while one Republican voiced outright criticism of the presidents behavior.Senate Democrats said ...

On the streets of Washington, pleas for change met with batons and rubber bullets

They had come out by the hundreds on the streets of the U.S. capital to protest racism and police brutality. With a curfew fast approaching, they had only a few hours to make their voices heard. Pressed against metal barriers a block from t...

Give Feedback