Page 4 - LatAmOil Week 18 2021

LatAmOil COMMENTARY LatAmOil

Rosneft chief Igor Sechin (left, standing), pictured during a visit to Caracas in 2013 (Photo:

Is Russian interest in

Venezuelan oil reviving?

Concerns about US sanctions appear to have convinced Rosneft to maintain a low profile

RUSSIAN investment in Venezuelan oil assets order to evade the consequences of US sanctions
has – technically, at least – ramped down over on Venezuela. And certainly, there have been
WHAT: the last year. The decline began in March 2020, reports that Russian companies and traders are
Russia and Venezuela when state-owned Rosneft, which had long playing a prominent role in helping Caracas
recently discussed been one of the most active partners of Vene- send part of its oil production to the world mar-
expanding co-operation. zuela’s national oil company (NOC) PdVSA, ket, despite the US sanctions regime.
announced plans to discontinue its operations Even so, Rosneft is no longer playing as much
WHY: in the South American country. In May 2020, of an active role in Venezuela as it did before.
Rosneft does not have just two months later, Rosneft said that it had The prospect of falling foul of US sanctions does
compelling reasons to completed the process of withdrawal. appear to have deterred the company – and its
return to Venezuela. There has been some speculation that Ros- parent organisation, the Russian government
neft did not exactly quit Venezuela. Instead, – from co-operating openly with Venezuela.
WHAT NEXT: some observers alleged last year that the Rus- (Indeed, it is worth noting that the Russian giant
The status quo is likely sian major had shuffled its Venezuelan assets announced plans to ramp down operations in
to stand, absent major
policy changes in the US around, moving them first to a state-controlled that country after US authorities expanded trade
or Russia. shell company and then to a little-known private restrictions in early 2020 to cover two of its sub-
security firm with which it already had ties in sidiaries, Rosneft Trading and TNK Trading.)

P4 www. NEWSBASE .com Week 18 06•May•2021