Companies

Rosneft Terminates Venezuelan Operations

By Mahati K L
March 29, 2020
a minute read
Moscow Spasskaya Tower St. Basil's Cathedral

Russian state-controlled oil company PJSC Rosneft Oil Co. has announced that it has terminated its operations in Venezuela and sold all of its assets in the country to an unnamed company wholly-owned by the Russian government. As a result, all of Rosneft’s assets and trading operations in Venezuela will be disposed of, terminated or liquidated.

The transaction will result in Rosneft receiving as a settlement payment a 9.6% share of Rosneft’s equity capital currently held by the Russian government, which will be held by a 100% subsidiary of Rosneft and accounted for as treasury stock.

Earlier this year, the U.S. Government had imposed new sanctions on two Rosneft oil trading subsidiaries, after the company was accused by the Trump administration of supporting the regime of Venezuelan President Nicolás Maduro.

Rosneft’s Venezuelan assets include interests upstream joint ventures Petromonagas, Petroperija, Boqueron, Petromiranda and Petrovictoria, as well as oil-field services companies, commercial and trading operations.

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