Venezuela holds onto prized US refineries amid legal battle
CARACAS, Venezuela — Venezuela will hold onto its U.S.-based Citgo refineries, settling a long-standing dispute that threw ownership of the crisis-wracked country’s prized assets into peril as its massive debt mounts.
Venezuela on Friday began paying off $1.4 billion that an arbitration panel said was owed to the Canadian mining firm Crystallex, following a disputed takeover of the company nearly a decade ago by the late-President Hugo Chavez. The initial payment of $425 million enables it to hold onto the refineries.
Russ Dallen, a broker at Miami-based Caracas Capital Markets, said Monday that the payment shows Venezuela’s changing tactics — from fighting creditors to striking deals.
But it’s unclear whether Venezuela can continue making good on the debt owed to Crystallex and a long list of others who are now lining up to collect.