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Citgo defends debt deal after Venezuela's Maduro called it 'illegal'

Published 04/25/2019, 04:25 PM
Updated 04/25/2019, 04:30 PM
© Reuters. The Citgo Petroleum Corporation headquarters are pictured in Houston

(Reuters) - U.S. refiner Citgo, a subsidiary of Venezuelan state-owned oil company PDVSA, said in a statement that a March debt deal was "carried out in compliance with all applicable U.S. laws" after Venezuelan President Nicolas Maduro called it "illegal."

In a Tuesday television address, Maduro referred to a "$1.3 billion robbery and embezzlement," without specifying which deal he was referring to.

In its statement, Citgo - now controlled by a board named by opposition leader Juan Guaido - said a $1.2 billion term loan issued on March 28 was "marketed through an open and competitive process" and was also in compliance with "U.S. Government sanctions."

Guaido, the leader of the opposition-controlled National Assembly, invoked the country's constitution to assume an interim presidency in January, arguing Maduro's 2018 re-election was illegitimate. He has been recognized as Venezuela's rightful leader by most Western countries, including the United States.

© Reuters. The Citgo Petroleum Corporation headquarters are pictured in Houston

In January, the Trump administration sanctioned PDVSA, the Venezuelan government's main source of revenue, as part of a bid to pressure Maduro to leave office.

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