You're reading: Reuters: Russia, Venezuela discuss Citgo collateral deal to avoid U.S. sanctions

Reuters: Russia, Venezuela discuss Citgo collateral deal to avoid U.S. sanctions

Published July 21, 2017 at 11:48 am

The company logo of Russia's state oil giant Rosneft is seen at a petrol station in Moscow on June 28, 2017.A wave of cyberattacks hit Russia and Ukraine before spreading to western Europe and North America on June 27, in the second global outbreak of so-called ransomware in less than two months. Russian state oil giant Rosneft was among the victims along with a string of multinational companies. / AFP PHOTO / Yuri KADOBNOV

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Russia’s top oil producer Rosneft is negotiating to swap its collateral in Venezuelan-owned, U.S.-based refiner Citgo for oilfield stakes and a fuel supply deal – a move to avoid complications from U.S. sanctions, two sources with knowledge of the negotiations told Reuters.

State-owned Rosneft holds a 49.9 percent stake in Citgo as collateral for a loan last year of about $1.5 billion to the OPEC nation, which is reeling from low oil prices and a severe recession.