Sign in to follow this  
Followers 0
EL-FLIPPO

How Russian Oil Giant Rosneft Could Claim U.S. Oil

8 posts in this topic

Rosneft, an oil corporation majority-owned by the Russian government, says it has the right to claim an ownership stake in U.S. oil company Citgo Petroleum if Citgo’s cash-strapped parent company defaults on billions in loans, according to a lien Rosneft recently filed in Delaware. If that claim succeeds, Rosneft, which is run by one of President Vladimir Putin’s closest allies, would own a sizable chunk of a company that is among the 10 largest petroleum refiners in America.

Russian ownership of a large portion of a U.S.-based oil company would be unprecedented, according to experts contacted by CBS News. Those experts also emphasize that the White House has the power to block the deal -- either on national security grounds or simply by leaving in place Obama administration sanctions against Russia.

Share this post


Link to post
Share on other sites

First, it must be some monumental mismanagement if a oil company goes broke.

On the other, if a group loans you money and you don't pay it back.  Don't they usually take over?

Share this post


Link to post
Share on other sites

First, it must be some monumental mismanagement if a oil company goes broke.

On the other, if a group loans you money and you don't pay it back.  Don't they usually take over?

 

You are correct on both counts.

Share this post


Link to post
Share on other sites

Russia nationalized its oil some time ago. Many don't know that Rosneft is the result. So it's pretty big and works hand in glove with the state as necessary- sort of like Rex Tillerson as sec of state here.  

Edited by zenwalk

Share this post


Link to post
Share on other sites

First, it must be some monumental mismanagement if a oil company goes broke.

On the other, if a group loans you money and you don't pay it back.  Don't they usually take over?

 

To answer your first statement, Citgo's parent company is basically the Venezuelan government.  Chavez and his successors definitely mismanaged that country.

Share this post


Link to post
Share on other sites

To answer your first statement, Citgo's parent company is basically the Venezuelan government.  Chavez and his successors definitely mismanaged that country.

Good example of globalization coming home to roost.

Share this post


Link to post
Share on other sites

Russian ownership of a large portion of a U.S.-based oil company would be unprecedented, according to experts contacted by CBS News. Those experts also emphasize that the White House has the power to block the deal -- either on national security grounds or simply by leaving in place Obama administration sanctions against Russia.

 

We're only talking about a 1.5 billion dollar loan.  If preventing a Russian state owned company from taking over a Venezuelan state owned company is a national emergency, surely we the taxpayers can pony up the dough.

Share this post


Link to post
Share on other sites

Rosneft, an oil corporation majority-owned by the Russian government, says it has the right to claim an ownership stake in U.S. oil company Citgo Petroleum if Citgo’s cash-strapped parent company defaults on billions in loans, according to a lien Rosneft recently filed in Delaware. If that claim succeeds, Rosneft, which is run by one of President Vladimir Putin’s closest allies, would own a sizable chunk of a company that is among the 10 largest petroleum refiners in America.

 

Russian ownership of a large portion of a U.S.-based oil company would be unprecedented, according to experts contacted by CBS News. Those experts also emphasize that the White House has the power to block the deal -- either on national security grounds or simply by leaving in place Obama administration sanctions against Russia.

Given the current climate, I doubt even Donny would be stupid enough to lift the sanctions on Russia.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0