(Bloomberg) — US Representative Maria Elvira Salazar is pressing the Trump administration to block the forced sale of Venezuela’s largest foreign asset, warning the move could undercut efforts to rebuild the nation when President Nicolas Maduro’s regime eventually ends.
At the center of the dispute is Citgo Petroleum Corp., a network of US-based refineries, lubricant plants and pipelines managed by Venezuela’s opposition. Its parent company, PDV Holding — a subsidiary of Venezuela’s state-owned oil firm — is being auctioned off in a federal court in Delaware to satisfy more than $20 billion in claims by creditors including Crystallex and ConocoPhillips.
In a letter addressed to State Secretary Marco Rubio, the Florida Republican accused the Biden administration of weakening the opposition by allowing creditors to target assets through US courts.
“Citgo needs to remain in hands of the opposition in order to be able to reconstruct Venezuela after the regime falls,” she wrote.
The sale has entered its final stages, with Red Tree Investments LLC submitting a base bid of $3.7 billion. Other interested buyers include oil trader Vitol and miner Gold Reserve, according to court filings. Special Master Robert B. Pincus said more unnamed bidders have also expressed interest.
Citgo is technically protected by US sanctions, but the Justice Department has said it won’t take enforcement actions against entities participating in the sale — effectively greenlighting the process.
Salazar, a vocal advocate for regime change in Venezuela, is urging the State Department to step in and pursue a settlement with creditors. She made a similar push last year in a letter to Treasury Secretary Janet Yellen, which received bipartisan backing.
In 2019, the US government gave the reins of the refiner to the opposition-led National Assembly, then presided by Juan Guaido, whom the US and other governments formerly recognized as the country’s legitimate leader as opposed to Maduro.
“The Venezuelan opposition desperately trying to restore freedom to their country shouldn’t have to pay the debts of Maduro and his cronies,” she wrote.
Also Read: Venezuela Opposition Presses US Officials to Halt Citgo Sale
More stories like this are available on bloomberg.com