Venezuela Restructuring Heightens Rosneft's $6 Billion Risk
- Russian giant is one of largest creditors of state-run PDVSA
- Analysts split over whether Rosneft will get its money back
Venezuela Leaves Markets Confused on Restructuring News
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The risks associated with Rosneft PJSC’s $6 billion advance to Venezuela’s oil company for future crude shipments have deepened after the Latin American nation announced plans to restructure crushing debts.
Venezuela’s President Nicolas Maduro said on Thursday he would seek restructuring of sovereign debt, but his government will still transfer funds for a $1.1 billion principal payment on bonds from Petroleos de Venezuela SA, the state-run oil producer. While this means there may not be an immediate impact on PDVSA’s obligation to repay Rosneft with oil deliveries, the move increases doubts about the arrangement, said Alexander Burgansky, an oil analyst at Renaissance Capital.