Oil company exits Venezuela

Russian firm aims to escape U.S. sanctions, transfers assets

MOSCOW — Russia’s Rosneft has transferred its assets in Venezuela to a company fully owned by Vladimir Putin’s government, a move apparently intended to shield Russia’s largest oil producer from U.S. sanctions while Moscow continues showing support for Venezuelan President Nicolás Maduro in the wake of a U.S. narcotics indictment.

The sale, announced Saturday, follows the recent sanctioning of two Rosneft subsidiaries in an effort to cut a critical lifeline that Russia extended to Maduro after the U.S. government made it illegal for Americans to buy crude from Venezuela.

Rosneft, led by Russian President Vladimir Putin’s longtime associate Igor Sechin, said that its move means that “all assets and trading operations of Rosneft in Venezuela and/or connected with Venezuela will be disposed of, terminated or liquidated.”

It said in a statement that it “concluded an agreement with the company 100% owned by the government of Russian Federation, to sell all of its interest and cease participation in its Venezuelan businesses, ” including multiple joint ventures, oil-field services companies and other activities.

Maduro said later Saturday during a call to a state television program that Putin had assured him of Moscow’s “comprehensive, strategic support” to Venezuela “in all areas.” He said the message was relayed by Russia’s ambassador to Caracas.

In February, the U.S. Treasury Department imposed sanctions on the Rosneft subsidiary based in Geneva that sells crude to European customers. U.S. authorities vowed to keep applying pressure and hit a second Rosneft subsidiary with sanctions earlier this month.

Rosneft spokesman Mikhail Leontyev said the company’s decision was aimed at “protecting the interests of our shareholders.” He added in remarks carried by Russia’s Tass news agency that Rosneft expects the U.S. to now waive sanctions against its subsidiaries.

“We really have the right to expect American regulators to fulfill their public promises,” he said.

Konstantin Kosachev, the Kremlin-connected head of the foreign affairs committee in the upper house of Russian parliament, said Russia’s view is that “unilateral U.S. sanctions against Venezuela are unlawful and inhumane.”

“Moscow and Caracas will remain partners amid the U.S. sanctions against Venezuela,” he told the Interfax news agency.

The U.S. was first among nearly 60 nations to recognize opposition leader Juan Guaidó a year ago as Venezuela’s rightful leader. The international coalition considers Maduro illegitimate after 2018 elections deemed fraudulent.