(CNN Spanish) – The Venezuelan government condemned this Tuesday as “a vulgar plunder” the decision of the Supreme Court of the United States, which on Monday refused to review a decision that authorized the auction of the shares of the PDV holding company in the United States Parent company of Citgo Petroleum Corporation. That is, the entire refining and sales subsidiary of Petróleos de Venezuela in the North American country.
In addition, the Delaware court hearing a lawsuit against Citgo Petroleum also on Monday authorized another group of creditors to participate in the auction of all Citgo shares, which they have until January 12 to come together and to take part in the auction.
Citgo's situation arises from a lawsuit brought by Canadian mining company Crystallex Corp. filed in the United States against the Venezuelan state after the government of Hugo Chávez expropriated a gold mine in Las Cristinas, Bolívar state, southern Venezuela. Crystallex's lawsuit set a precedent by linking Citgo as an asset with the aim of recovering the money demanded by Venezuela. That is, it is a strategy of the American company that uses a legal entity called “Alter Ego”, which establishes that Citgo, as a subsidiary of PDVSA, is the face of Venezuela before the law of the United States.
Other creditors, due to cases of expropriation or bonds owed, will assert the claim against the Venezuelan refinery in the United States under the above-mentioned figure of the “alter ego” through an auction of shares in the Venezuelan oil company.
In its statement, the Venezuelan government blamed what happened to the representatives of the National Assembly elected in 2015, who control the asset and are responsible for its defense, even though the legislative session ended in 2021. This defense is in charge of the Council Management and Asset Protection of the group of former legislators headed by Gustavo Marcano. When contacted by CNN, this group assured that they are considering speaking out.
The 2015 elected assembly, which was controlled by the opposition, is recognized by the United States as the sole legitimate authority after it ignored the May 2018 presidential election, believing it was not fair, competitive and transparent. However, as both governments have publicly acknowledged, there are ongoing discussions between Washington and Caracas, a dynamic that includes an agreement on an election outcome in 2024, a prisoner exchange and the release of US companies' involvement in oil deals in Venezuela. In this context, the government of Nicolás Maduro points out that this parliament has tried to “take over the institutions and representation of the Republic abroad”. CNN asked the opposition for a response to these allegations but has not yet received a response.
In the statement from the Caracas Executive, they assert that they were not allowed to take the necessary measures to effectively protect Citgo, based in Houston, and consider that in this way the agreements signed in Barbados were “flagrantly violated”. CNN contacted the Venezuelan government to explain details of these legal actions but has not yet received a response. This refers to the agreements signed on October 17 last year by the majority of the opposition and a delegation from the Maduro government on matters of the so-called vital interests of the nation, as well as political and electoral matters, looking ahead to the 2024 presidential elections.
One of the documents signed in Barbados includes the Partial Agreement for the Protection of the Vital Interests of the Nation, which states in its third point: “Defend the assets and property of Citgo Petroleum Corporation in order to preserve the vital interests and heritage. “of the Venezuelan people” without providing any further details as to what this point is about. CNN contacted the parties involved in the negotiations, government and opposition, to obtain details about what this point of the agreement implies, but at the moment we have not received any further information.
The Venezuelan government assures that it will use all political, diplomatic and legal measures at its disposal “to prevent the implementation of the definitive expropriation of the Citgo company”. At the same time, they warn against punishing those they consider responsible.