U.S. OIL ASSETS COULD FALL INTO RUSSIAN HANDS IF VENEZUELA DEFAULTS | WHAT REALLY HAPPENED


U.S. OIL ASSETS COULD FALL INTO RUSSIAN HANDS IF VENEZUELA DEFAULTS

If Venezuela defaults on its debt obligations, it could result in Russia taking control over U.S. refining assets, leading to more Russian “control over oil and gas prices worldwide,” which would “inhibit U.S. energy security, and undermine broader U.S. geopolitical efforts.”

That is the warning from two members of Congress, Reps. Jeff Duncan (R-SC) and Albio Sires (D-NJ). The two Congressmen sent a joint letter to the U.S. Secretary of Treasury Steven Mnuchin, requesting his attention on the matter. A bipartisan group of six U.S. Senators also requested a response from Secretary Mnuchin on the matter.

They cite the fact that Russia’s government-backed oil company, Rosneft, gave Venezuela’s state-owned oil company, PDVSA, a $1.5 billion loan. As collateral, PDVSA offered up 49.9 percent of Citgo, a subsidiary of the Venezuelan oil company. Citgo owns three refineries in the U.S., along with pipelines and retail gas stations.

The Congressmen are worried that if PDVSA defaults, Rosneft will seize the U.S.-based refineries. “The Russian government could readily become the second-largest foreign owner of U.S. domestic refinery capacity,” which would be “to the detriment of U.S. interests,” the Congressmen wrote. “[W]e remain deeply concerned over the implications for U.S. national security.”

Webmaster's Commentary: 

So, what do these Congressmen suggest, as Venezuela melts down politically, economically, and socially?!?

An invasion and occupation, perhaps, to keep these assets from falling into Russian hands, just at the point where the Venezuelan military can no longer control the anger of the Venezuelan people, who see themselves as thoroughly betrayed by their government?!?

Yes, such action would be officially horrible; but the US government has got to look at its own complicity in insuring that the Venezuelan government would ultimately fall, before it whines and complains about this possible outcome from that complicity.

Venezuela sanctioned by the US for trading with Iran, 2011

Venezuela declared a national security threat, 2015

This is yet another example of the US government having a pathological inability to think anything through to its logical conclusion.

If the US government wanted Maduro's "Bolivar Republic" to fail, they should have known that this default was going to become one of the downsides of that economic/social failure.

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