U.S. Extends Protection Over Venezuela’s Citgo for One Year
- Ban on all transactions remains in effect until Jan. 20, 2023
- PDVSA bond that matured in 2020 is backed by Citgo’s shares
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The U.S. Treasury Department banned transactions of a key bond issued by Venezuela’s state-owned oil company for one year, the longest since it first stepped in to shield its U.S.-based refining arm from creditors, amid its economic downfall and political crisis.
U.S. administrations under Donald Trump and now Joe Biden, had previously extended the ban for shorter periods -- 90 days each -- consecutively, as claims from bondholders and creditors over Petroleos de Venezuela SA’s main asset in the U.S., Citgo Petroleum Corp., piled up in courts.