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Rosneft Hands Venezuelan Oil Business to Russian State Firm

Associated Press

   MOSCOW - Russia's Rosneft oil company said Saturday that it's halting
   operations in Venezuela and selling its assets there to a company fully
   owned by the Russian government, a move apparently intended to protect
   Russia's largest oil producer from U.S. sanctions while Moscow
   continues supporting Venezuelan President Nicolas Maduro.

   The sale follows the U.S. imposition of sanctions on two Rosneft
   subsidiaries in an effort to cut a critical lifeline 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 meant 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 a company
   100% owned by the government of the 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.

   The sale could help shield Rosneft by handing over control of the
   Venezuelan operations to a fully state-owned venture that unlike the
   state-controlled Rosneft isn't answerable to private investors.

   U.S. pressure

   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.

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