Russian Companies Face No Issues, Losses in Venezuela - Moscow

MOSCOW (Sputnik) – The Russian government, which is supporting incumbent Venezuelan President Nicolas Maduro, has received no information on any problems or economic losses faced by Russian companies in the crisis-torn Latin American country, Russian Energy Minister Alexander Novak said on Tuesday.

"Our companies represented there [in Venezuela] are very closely following the situation, monitoring it. They have relevant legal and commercial services. Today we have no information that some of them are facing problems and losses", Novak said in an interview for the Gazeta.ru media outlet.

In March 2018, Rosneft’s Vice President for Refining, Petrochemicals, Commerce and Logistics Didier Casimiro said that Rosneft had issued $6.5 billion, in loans to be repaid in future crude deliveries, to Venezuelan state oil company PDVSA.

READ MORE: Venezuela's PDVSA Refutes Reports of Gazprombank Freeze on Company Accounts

Venezuela repaid $2.3 billion of advance payments received from Rosneft in 2018, and another $2.3 billion remains to be repaid, according to a presentation by the Russian company for the IFRS report, issued in early February, for the first nine months of this year.

Venezuelan oil projects with Rosneft's participation are Petromonagas (with Russian the company's share at 40 percent) Petromiranda (32 percent), Petroperija (40 percent), Boqueron (26.67 percent) and PetroVictoria (40 percent).

Rosneft also owns 100 percent in the gas project to develop the Mejillones and Patao offshore fields with export rights and conditional resources of 85 billion cubic meters. In addition, the Russian company owns 100 percent in the oilfield services company Precision Drilling and 51 percent in another oilfield service company, Perforosven.

On 28 January, the United States, which is supporting self-proclaimed Venezuelan president Juan Guaido, introduced sanctions against the Venezuelan state oil company PDVSA, having blocked its assets and interests, worth of $7 billion, amid the crisis in Venezuela. Washington also prohibited any deal with the Venezuelan oil giant.

READ MORE: Oil Market to Lose Almost Third of Venezuelan Crude due to US Sanctions — Report

Guaido declared himself "interim president" on 23 January and was immediately recognized by the United States and about 50 other states. Russia, China, Cuba, Bolivia and a number of other states have, in the meantime, voiced their support for the legitimate government of constitutionally elected Maduro.

Mexico and Uruguay have refused to recognize Guaido, declaring themselves neutral and promoting crisis settlement via dialogue.