Venezuela on the Brink of Losing Citgo, Its Last Big Foreign Asset

Venezuela is close to losing Citgo, its most valuable company outside the country, after years of unpaid debts and international lawsuits.

Citgo runs three oil refineries in the United States, processing over 800,000 barrels of oil each day, and has long been a key source of cash for Venezuela. The country’s debt has reached $150 billion.

Already, Venezuela has lost other assets in Europe and Asia to creditors. Now, a U.S. court has ordered the sale of Citgo’s parent company, PDV Holding, to pay nearly $19 billion owed to more than a dozen creditors.

This legal process started after Venezuela’s government seized foreign companies’ assets, leading to lawsuits and court judgments against it. In June, a court official chose Gold Reserve, a Canadian mining company, as the top bidder in an auction for Citgo’s parent company.

Gold Reserve’s $7.38 billion bid covers claims for 11 of the 15 main creditors, including its own $1.18 billion claim. Other companies, like Black Lion Capital Advisors and Vitol, also made offers, but only Gold Reserve’s met all court requirements.

The sale still needs final approval from the judge in August and from the U.S. Treasury, which oversees sanctions on Venezuela. If Venezuela cannot keep any part of Citgo, it will lose its last major foreign asset.

Since 2019, Citgo has operated separately from Venezuela’s state oil company because of U.S. sanctions. This has made it harder for Venezuela to sell its oil, while Citgo has had to buy crude from other suppliers.

Citgo’s Decline Highlights Venezuela’s Debt Crisis

Citgo’s profits have also dropped, from $2 billion in 2023 to $305 million in 2024, and the company lost $82 million in early 2025. Not all creditors will be paid in full.

Citgo was once valued at up to $13 billion, but all auction bids were under $11 billion, and the total claims are almost $19 billion. Some creditors have tried to seize other Venezuelan assets in different countries.

However, many have failed or dropped out due to high legal costs and low chances of recovery. The Citgo case shows what can happen when a country cannot pay its debts and loses in court.

Creditors can use the legal system to take valuable property, even outside the country. For Venezuela, losing Citgo would mean losing its last big asset abroad and another blow to its struggling economy.

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