Venezuelan Government Condemns US Court Decision to Allow Auction of Citgo Shares
(CNN Spanish) — The Venezuelan government has strongly condemned the decision of the Supreme Court of Justice of the United States to refuse to review a ruling authorizing the auction of the shares of PDV holding, the parent company of Citgo Petroleum Corporation. This decision has been labeled as “a vulgar plunder” by the Venezuelan government, which is the parent company of Citgo Petroleum Corporation, the entire refining and distribution subsidiary of Petróleos de Venezuela in the United States.
Furthermore, the Delaware Court, where a lawsuit against Citgo Petroleum is being judged, authorized another group of creditors to join the auction of Citgo shares in its entirety by January 12, 2024.
The situation of Citgo’s shares in the United States stems from a lawsuit filed by the Canadian mining company Crystallex Corp against the Venezuelan State following the expropriation of a gold mine in Las Cristinas, Venezuela. This lawsuit set a precedent by linking Citgo as an asset in order to recover the money claimed from the Venezuelan government. This legal strategy uses the “alter ego” figure, which determines that Citgo, as a subsidiary of PDVSA, represents Venezuela before the law of the United States.
The Venezuelan Government holds the representatives of the National Assembly elected in 2015 responsible for protecting Citgo, even though the legislative period ended in 2021. The defense of Citgo is led by the Council Administration and Asset Protection of the group of former legislators, headed by Gustavo Marcano. The Assembly elected in 2015 is recognized by the United States as the only legitimate authority after ignoring the presidential elections of May 2018.
Despite ongoing talks between the US and Venezuela, including agreements on an electoral exit in 2024, an exchange of prisoners, and unblocking of the participation of US companies in oil businesses in Venezuela, the Venezuelan Government accuses the 2015 parliament of attempting to “usurp the institutions and representation of the Republic abroad.”
The Venezuelan Government claims they were not allowed to take necessary actions for the effective protection of Citgo, and considers the US court decision a violation of the agreements signed in Barbados last year.
The government asserts that they will adopt all political, diplomatic, and legal measures at their disposal to avoid the dispossession of Citgo and will punish those they deem responsible for the situation.
While the parties involved in the negotiation, the Government and the opposition, have not provided further details about the situation, the Venezuelan Government remains firm in their stance to protect the national interests and the heritage of the Venezuelan people.