Moscow Will Do “Whatever It Takes” To Defend Its Interests In Venezuela

Venezuela’s President Nicolas Maduro (C), holds a replica of Venezuela’s national hero Simon Bolivar’s sword as Head of Russian state oil firm Rosneft Igor Sechin (R) and Venezuela’s Oil Minister and President of the Venezuelan state oil company PDVSA Eulogio del Pino look on during an agreement between Rosneft and PDVSA in Caracas, Venezuela July 28, 2016. Miraflores Palace/Handout via REUTERS ATTENTION EDITORS – THIS PICTURE WAS PROVIDED BY A THIRD PARTY. EDITORIAL USE ONLY. – RTSK63F 

Russian Insider.com    By Tyler Durden          Thurs., Jan. 31, 2019

After decrying US sanctions against Venezuela’s state-run oil company PDVSA as “illegal” and enforcing “unfair competition”, a Kremlin spokesman has reiterated that Russia is prepared to use “all mechanisms available to us” to defend its economic interests in Venezuela – interests that are closely tied to the Maduro regime.

According to RT, Russia has extended billions of dollars of loans to PDVSA, mostly via oil firm Rosneft. The company has extended $6 billion of loans which must be repaid in crude by the end of the year. Data from S&P Global Platts shows that as of November 2018, Venezuela had a $3.1 billion outstanding loan to repay to Rosneft.

Rosneft also has five joint upstream projects with PDVSA in Venezuela. Peskov said that Russia is still assessing the potential impact of the PDVSA sanctions for Moscow.

According to analysts briefed by Platts, whatever becomes of Maduro, Rosneft likely won’t be cut off from Venezuelan oil because the country has abundant reserves, and oil is practically the only ‘hard currency’ it can access. An analyst at a Western bank estimated that Rosneft assets in Venezuela are equivalent to some $2.5 billion, plus another $2.5 billion in crude supplies owed for the loans.

“The worst-case scenario – which is unlikely to materialize – under which Rosneft loses all the money it invested in Venezuela, would be biting but not critical for the company, with quarterly free cash flow at over $4 billion,” the analyst told Platts.
Meanwhile, the US has warned that the “path to relief” for PDVSA is via the “expeditious transfer of control” to opposition leader Juan Guaido, which the US insists should be followed by Democratic elections.

Though the Kremlin has denied the reports, rumors about the presence of 400 Kremlin affiliated mercenaries in Venezuela make more sense given how much money is at stake.

Source: https://russia-insider.com/en/moscow-will-do-whatever-it-takes-defend-its-interests-venezuela/ri26110       Via: ZeroHedge

About ron abbass

Because of my last name, there are some who might think I'm a Muslim. I'm an older student of the bible and I regard myself as Christian-other. That is, I was baptized in a Torah-keeping assembly. I'm one who tries his best to follow Yayshua, the Messiah (Christ) by keeping the commandments, the dietary laws, the weekly Sabbath and the annual Sabbaths (Holy Days) instituted and ordained by the great I AM, the Creator-God of Israel. I reject the holidays and festivals invented by the Roman church. Truth-seeking is my present passion. Presently, I do a lot of research into the World Wars, the mass media, the Holocaust, Zionism, Health Issues, 9/11 and the power brokers who are behind the New World Order that is gradually being established mainly in the Western Nations. Many prognosticators (prophets) both secular and religious are warning us that we are living "On the Eve of Destruction" - the last days. There's a very good chance a nuclear tsunami will eventually visit many nations. Peace and blessings to all who love the truth and hate the lies.
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