Venezuela’s PDVSA fails to use US sanctions to own advantage in Delaware court

Venezuela’s beleaguered oil company PDVSA tried to use US sanctions to its own advantage recently — a bold move that ultimately failed. This played out in a US legal dispute over a Canadian gold miner seeking to recoup assets seized by the Venezuelan government. A US district court judge in Delaware ruled August 9 that PDVSA is essentially an “alter ego” of the Venezuelan government, allowing Canadian miner Crystallex to go after the oil company’s shares in profitable US refiner Citgo, even though PDVSA had nothing to do with nationalizing the gold mine. The victory allows Crystallex to collect on a $1.2 billion judgment against Venezuela that it secured in an earlier US court case — although whether the miner will ever get anything from Citgo given the droves of other companies demanding repayment from Venezuela remains a huge question mark. PDVSA’s argument about US sanctions came into play when the company argued that its shares of PDV Holding, the parent company of Citgo, are “effectively frozen” by an executive order signed by US President Donald Trump in August 2017 as part of broader sanctions meant to pressure Venezuelan President Nicolas Maduro’s regime. “What the executive order says is you… continue reading

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Source: CTRM Center

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