Russia Claims Ownership of Oil Assets It’s Developing in Venezuela

Russia on Tuesday asserted ownership of all oil assets a state Russian company is developing in Venezuela, following the claims of U.S. President Donald Trump that major American and Western oil firms would help revive Venezuela’s oil industry.

Russia’s Roszarubezhneft, a state-owned firm that took over Rosneft assets in 2020 following U.S. sanctions on Rosneft’s Venezuelan oil trade, said on Tuesday that “all assets of Roszarubezhneft in Venezuela are owned by the Russian state,” as they have been bought at market prices and conditions.

Roszarubezhneft, owned by a unit of the Russian Ministry of Economic Development, was incorporated in 2020. After the U.S. sanctioned two units of Rosneft for trading Venezuelan oil, Roszarubezhneft bought the Venezuelan assets of the Russian state-controlled oil giant Rosneft.

“All assets of Roszarubezhneft JSC in Venezuela are the property of the Russian state, having been acquired by the Russian side under market conditions, in full compliance with the legislation of the Bolivarian Republic of Venezuela, international law, and interstate agreements between Russia and Venezuela,” the Russian company said in a statement carried by Russia’s news  agency TASS.

Roszarubezhneft has five oil-producing joint ventures with Venezuelan state oil firm PDVSA in Venezuela.

Roszarubezhneft plans to further develop its assets in Venezuela, the company said.

“The company will continue to strictly honor its obligations in close coordination with its international partners, focusing on the sustainable development of joint oil production projects, infrastructure, and an effective response to emerging challenges,” the Russian state-owned firm added.

Since the beginning of the year, the U.S. has captured Nicolas Maduro and flown him to New York to stand trial on drug-trafficking charges. The U.S. has also seized a Russia-flagged tanker in the North Atlantic after a dramatic pursuit that began near Venezuelan waters in late December.

Russian President Vladimir Putin has not commented in public on the shock arrest of Maduro, but the Russian Foreign Ministry “strongly urged the American leadership” to release Maduro and his wife immediately after their extraction from Venezuela.

By Josh Owens for Oilprice.com