Rosneft Pulls Out of Venezuela Following U.S Sanctions

U.S sanctions against Venezuela seem to be hitting hard and harder on the nation situated on the northern coast of South America. The latest casualty of these sanctions is Russian integrated energy company Rosneft Oil Company (ROSN).

The largest Russia based oil company has announce that it will be ceasing operations in Venezuela with immediate effect further selling all the assets to a company which it failed to disclose. Direct sources however revealed the company purchasing these assets is linked to the Russian government.

This timely announcement comes at a time when global oil prices have plunged to $25 per barrel. Rosneft was in a joint venture with Venezuelan state oil company Petroleos de Venezuela. The company declined to give a response on the matter when contacted.

President’s Trump administration has been on the neck of Venezuelan President Nicolas Maduro’s government. Of late the U.S seems to be shifting the war against Russia indirectly.

Earlier last month U.S government imposed sanctions on two Rosneft units – Rosneft Trading and TNK Trading International. Both firms are Swiss based, the U.S claimed by acting as intermediaries for PDVSA’s crude oil, they provided financial lifeline to the company to keep on keeping on.

With this change of ownership, experts claim U.S will be directly targeting Russia if it imposes any sanctions on Russian-controlled oil operations in Venezuela in the future.

Speaking on the matter, Rosneft’s spokesman Mikhail Leontiyev, said the move to change ownership was aimed at protecting shareholder’s interests at the company.

We defended the interests of our shareholders and did it in an effective way, and to whom the risks go is not an issue for us. The main thing is that the risks are leaving us,” said the spokesperson.

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