Venezuela blasts US court-ordered Citgo sale as battle over oil, sanctions and sovereignty escalates

Venezuela’s government is denouncing a US court’s order to approve the forced sale of Citgo’s parent company, calling the ruling “fraudulent” and “forced” as the years-long fight over the crown jewel of Venezuela’s foreign assets enters a new phase.

Vice President and Petroleum Minister Delcy Rodríguez delivered the government’s response on state TV, saying:

“We energetically reject the decision adopted in the judicial process.”

A Delaware court last week authorised the $5.9bn sale of Citgo’s holding company to Amber Energy, part of Elliott Investment Management, a hedge fund at the centre of the fight to extract billions from Venezuela after years of defaults, expropriations and sanctions. The court order was touted by Elliott as being “backed by a group of strategic US energy investors”.

Citgo, based in Houston and long considered Venezuela’s most valuable overseas asset, is now being carved up to pay more than $20bn in accumulated claims from creditors ranging from mining companies to bondholders. The saga reflects how a decade of sanctions, collapsing production and financial isolation have left Caracas with little room to manoeuvre.

For the Maduro government, the forced Citgo sale is more than a financial defeat, it is a geopolitical humiliation. The ruling comes just as Maduro accuses Washington of deploying naval power in the Caribbean to “seize” Venezuela’s vast oil reserves.

Rodríguez framed the court order as part of the same threat.

Meanwhile, the US maintains its actions are aimed at fighting drug trafficking, despite offering no evidence that the vessels struck by US forces were carrying narcotics or had cartel ties. At least 83 people have been killed in these maritime strikes.

Despite holding the world’s largest proven oil reserves, 303 billion barrels, Venezuela exported only $4.05bn in crude last year. Much of this decline stems from US sanctions that decimated the once-profitable state oil giant PDVSA.

The Citgo sale will further weaken Venezuela’s external leverage. A billboard in Caracas recently read: “Return CITGO to the Venezuelans.” That is now even less likely.

Maduro has appealed to OPEC for support, urging producer nations to push back against what he calls US “illegal threats”. But analysts say he shouldn’t expect much.

Citgo’s downfall traces back decades, from Hugo Chávez’s nationalisation push, to chronic underinvestment in PDVSA, to the crushing sanctions of the first Trump term. Under Biden, the US briefly eased the pressure, granting Chevron a limited licence, only for Trump to tighten sanctions again upon returning to office this year.

Venezuela once shipped huge volumes of crude to US refineries. Today, most exports go to China, India and Cuba, often at steep discounts.