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Russia's Rosneft Lowers Risks of US Sanctions by Selling Venezuelan Assets - Moody's

Sputnik News

15:50 GMT 31.03.2020

MOSCOW (Sputnik) - By selling its assets in Venezuela, Russia's Rosneft oil company considerably lowers the risk of further US sanctions, Moody's Investors Service rating company said on Tuesday.

"The agreement is credit positive for Rosneft because it significantly reduces the risk of further sanctions without materially affecting the company's asset base and credit metrics ... Rosneft's continuing operations in Venezuela and trading the locally produced oil risked triggering more broad sanctions against the company, potentially undermining its own international sales", the company said in a statement.

On 28 March, the company announced ceasing its activities in Venezuela and selling all of its assets in the country. The company's spokesman Mikhail Leontyev told Sputnik that it now has the right to expect the US regulators to lift sanctions on its subsidiaries.

In February, the United States introduced sanctions against Rosneft subsidiary Rosneft Trading and accused it of supplying Venezuelan oil to foreign markets, thus supporting the country's current authorities, not recognised by the US as legitimate. On 12 March, Washington also sanctioned another subsidiary, TNK Trading, claiming it was moving oil instead of the previously sanctioned Rosneft Trading.

Sputnik



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