Senators Warn Mnuchin of National Security Implications of Russia CITGO Takeover

PJ Media ^ | 4/11/2017 | Bridget Johnson

[RightGeek]

Senators are alarmed about the national security implications of Russia acquiring a significant ownership share in an oil company whose terminals span 20 states across the nation.

In a letter to Treasury Secretary Steve Mnuchin, who is chairman of the inter-agency Committee on Foreign Investment in the United States, Sens. Bob Menendez (D-N.J.), Marco Rubio (R-Fla.), John Cornyn (R-Texas), Dick Durbin (D-Ill.), Bill Cassidy (R-La.) and Ted Cruz (R-Texas) say he needs to be prepared to protect U.S. energy infrastructure should Rosneft carry through with seizing control of CITGO Petroleum Corporation’s Venezuelan parent company, state-owned Petroleos de Venezuela S.A.

Oil giant Rosneft is owned by the Russian government and its chairman, Igor Sechin, is a former deputy prime minister under President Vladimir Putin and a close ally. Both the company and Sechin are currently covered under U.S. sanctions.

Amid economic turmoil in Venezuela and the stress of low oil prices, in December PDVSA leveraged 49.9 of its shares in CITGO as collateral for a $1.5 billion loan from Rosneft. With the situation in Venezuela further deteriorating, making default more likely.

The senators wrote that the "series of international transactions" could "have significant national security implications for critical energy infrastructure in the United States." CITGO has three refineries in Texas, Louisiana and Illinois, several pipelines, and 48 terminals in 20 states.

"A number of respected international market analysts predict that due to the ongoing economic crisis in Venezuela, PdVSA could default on its debt in the very near future. In the case of default, Rosneft would then acquire at least a 49.9 ownership share in PdVSA and its subsidiary CITGO. This could leave Rosneft, a Russian company controlled by oligarchs with close ties to Vladimir Putin, in control of critical energy infrastructure in the United States,"...

[RightGeek]

There are a few CITGO gas stations left too.

[proust]

And check under your bed for Reds.

[alloysteel]

I have not bought gasoline from a CITGO station for years, since it was revealed as a marketing arm of the Venezuelan state-owned petroleum monopoly. Valero is part of the same marketing scheme, even though it is a separate entity.

[Cowboy Bob]

Why isn't ownership by Venezuela considered a security threat?

[WakeUpAndVote]

And they have how much of our uranium? At this point, what difference does it make?

[riverdawg]

“Valero is part of the same marketing scheme, even though it is a separate entity.”

I don’t think Valero is (or ever has been) connected to CITGO.

[SaveFerris]

Yeah, I haven’t been to one in about 15 years.

[AppyPappy]

If we were going to invade anyone, it should be Venezuela. Those people need rescuing before a famine breaks out.

[JoSixChip]

Those people need rescuing before a famine breaks out.

Those people made their own bed. They were convince that their utopia would be different.

[thinden]

but no outrage over Russia buying URANIUM ONE controlling 20% of US uranium deposits.

[VietVet876]

Ever notice how many gas stations are staffed by arabs? And do a real estate tax record search and the station is owned by Marwan and Mohammad? I would sure rather have some nice Caucasian Russian guys waiting on me than a bunch of 9/11 look-alike ragheads.

[headstamp 2]

We have a few “Lukoil” stations in my area.

[Tudorfly]

I concur. I believe Valero is an American owned and run company, producing and selling Amercan oil. CITGO is a Venezuelan owned company, producing and selling Venezuelan oil in America. I do my best to not buy gas from CITGO branded gas stations, as I do not seek to support the socialist and failing government of Venezuela (which, before the rampant socialism took effect, was once a prosperous South American country). Socialism, like communism, ruins everything with which it comes into contact.

[Political Junkie Too]

This is similar to when the China National Offshore Oil Company (CNOOC) made a bid to buy Unocal. Congress was making rumblings about stepping in, and eventually Chevron made a successful offer for Unocal.

-PJ

[drpix]

I like any other truly patriotic American have always believed a hostile nation owning not only gas stations but oil refineries in the US has very serious “national security implications.”

But why only now, when Russia may take over ownership of Citgo, is this all of a sudden an issue - when for years Anti-American and Communist Venezuela's ownership of Citgo (and mortgaging it to Russia for the purchase of advanced Russian weapons) WAS NEVER AN ISSUE?

Could it just be that the Anti-Trump media, Democrats and RINOs are only now using their false concern for “national security” to fan their flame of false Russia hysteria?

[muleskinner]

Valero was created on January 1, 1980,[4] as a spinoff of Coastal States Gas Corporation. At the time, it was the largest corporate spinoff in U.S. history. Valero took over the natural gas operations of the LoVaca Gathering Company, a defunct subsidiary of Coastal States Gas. The name Valero comes from Misión San Antonio de Valero. Valero acquired a small oil refinery in Corpus Christi, Texas in 1981, and began refining operations in 1984.

In 1997, Valero spun off its refinery and retail divisions into a separate company, which kept the Valero name. At the same time, the remaining divisions, which consisted primarily of natural gas operations, were acquired by the Pacific Gas and Electric Company. Later that year, the firm acquired Basis Petroleum, which left it with four refineries in Texas and Louisiana. In 1998, it then acquired a Paulsboro, New Jersey, refinery, the company’s first outside of the Gulf Coast area - wikipedia

[Rashputin]

I don't see how their majority ownership is as great a threat to the US as six major democrat fascist scumbags owning almost all the major media in this country.

If we're going to worry about any foreigner owning something, start with making the SOB who owns the NYT lose big bucks by divesting himself of shares until he only owns 25% of the company.

Then get the major TV and radio cabals broken up to the point that no one, corporation or individual, owns more than ten percent.

Otherwise, don't preach free traitor BS except when it threatens someone who wants CITGO but doesn't have the money at the moment or thinks the price should be lower with missing their chance to take it over.

Oh, and anti-trust or not, go after Soros for bribery and criminal conspiracy for buying up the shares of coal companies, some of which have always been largely privately held and off the market, until Barry Obama deliberately set out to destroy the whole coal industry in order to drive the price down to what Soros wanted to pay. That was so clearly Soros and Barry working hand in glove that it's no one can even pretend it had anything to do with a free market.

JMHo