CBS News: How Russian oil giant Rosneft could claim U.S. oil
How Russian oil giant Rosneft could claim U.S. oil
Rosneft, an oil corporation majority-owned by the Russian government, says it has the right to claim an ownership stake in U.S. oil company Citgo Petroleum if Citgo’s cash-strapped parent company defaults on billions in loans, according to a lien Rosneft recently filed in Delaware. If that claim succeeds, Rosneft, which is run by one of President Vladimir Putin’s closest allies, would own a sizable chunk of a company that is among the 10 largest petroleum refiners in America.
Russian ownership of a large portion of a U.S.-based oil company would be unprecedented, according to experts contacted by CBS News. Those experts also emphasize that the White House has the power to block the deal -- either on national security grounds or simply by leaving in place Obama administration sanctions against Russia.
Citgo’s parent company, the Venezuela state-owned PDVSA, pledged a 49.9 percent stake in Citgo to Rosneft as collateral for a $1.5 billion loan signed on Nov. 30. That same day, attorneys for Rosneft filed the lien with the Delaware Department of State, asserting that Rosneft — whose CEO, Igor Sechin, has long been considered Putin’s right-hand man — would claim the collateralized 49.9 percent if the struggling Venezuelan debtor defaults or folds.
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