Rosneft In Talks With PDVSA To Swap Citgo Stake For Fuel Supply: Reuters

By Myra P. Saefong Markets MarketWatch Pulse

Russia's state-owned Rosneft is in talks with Petroleos de Venezuela SA to swap Rosneft's collateral stake in U.S.-based Citgo, which is owned by the Venezuelan oil and gas firm, for a fuel-supply deal and stakes in Venezuela-based oil and natural-gas fields, Reuters reported Thursday, citing people familiar with the negotiations. Rosneft received 49.9% of the equity in PDVSA subsidiary Citgo Petroleum Corp. late last year as collateral for a $1.5 billion loan to PDVSA. Reuters reported that two sources with knowledge of the negotiations said the move would avoid complications from U.S. sanctions.

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