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Russia Could Soon Take Control of US Energy Company Citgo

Image: Russia Could Soon Take Control of US Energy Company Citgo
(AP)

By    |   Monday, 10 April 2017 10:43 PM

Russia could soon control an American energy company, CNN reports.

If Venezuela's state-run oil company Petroleos de Venezuela doesn't pay Russia back on a loan it took out in December, Citgo, an oil company which runs pipelines and refineries across the U.S., could be taken control of by Russia's state-owned oil company Rosneft.

Petroleos de Venezuela has owned Citgo since the 1980s. In exchange for a loan from Rosneft, it put up 49.9 percent in Citgo as collateral. Rosneft would only need to purchase a few more of Petroleos de Venezuela's bonds to take more than 50 percent ownership.

It wouldn't be a direct take-over, but it's a cause for concern for some lawmakers as a takeover by Rosneft would make Russia "the second-largest foreign owner of U.S. domestic refinery capacity," giving the country more control "over oil and gas prices worldwide," House Committee on Foreign Affairs members Jeff Duncan and Albio Sires wrote to U.S. Treasury Secretary Steve Mnuchin.

Six senators, led by Marco Rubio and Bob Menendez, also expressed concern to Mnuchin:

"We are extremely concerned that Rosneft's control of a major US energy supplier could pose a grave threat to American energy security, impact the flow and price of gasoline for American consumers, and expose critical US infrastructure to national security threats."

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Russia could soon control an American energy company, CNN reports.
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2017-43-10
Monday, 10 April 2017 10:43 PM
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