New Venezuela Sanctions Protect Citgo, Encourage Debt Talks

Venezuela’s opposition on Tuesday celebrated a sweeping U.S. sanctions order against the government of President Nicolas Maduro, saying the measure would protect Venezuela-owned U.S.-based refiner Citgo from seizure by creditors, Reuters reported. Three allies of opposition leader Juan Guaido also said the measure allowed for restructuring negotiations with bondholders, which had been prohibited under previous sanctions. That could be key to protecting Citgo, since half of state oil company PDVSA’s shares in the refiner were put up as collateral for its 2020 bond. Washington on Monday announced a freeze on all Venezuelan government assets in the United States, escalating an economic and diplomatic pressure campaign aimed at removing the socialist president. Read more

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