Democratic Sen. Bob Menendez raised alarm Monday over the potential Russian takeover of a large American-based oil firm that controls numerous terminals and infrastructure in the United States.
“We can’t play Russian roulette with national security and energy independence,” the Democratic senator from New Jersey tweeted on Monday.
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He explained that a recent loan given by the Russian government-owned oil company Rosneft to help Citgo’s large refinery component in the U.S. could put America’s security at risk.
Citgo is owned by the Venezuelan government, but operates large amount of infrastructure in the United States. Menendez argued that given the situation in Venezuela, which is experiencing an economic collapse, the oil firm’s assets could become the property of Russia if the South American firm is forced to default on the loan.
Russian President Vladimir Putin “has used the Russian oil and gas industry to manipulate energy prices in Eastern European economies,” Menendez said in a statement. “We cannot let that happen here in the United States.
“We cannot give Putin any opening to affect the flow of oil or toy with Americans’ prices at the pump,” he said. “And we cannot play Russian roulette with America’s energy infrastructure. The risk to our national security and our economy is not one I’m willing to take.”
Menendez is the senior member of the Senate Foreign Relations Committee. His public remarks were followed by a detailed letter that he and both Republicans and Democrats on the committee sent to Treasury Secretary Steve Mnuchin, asking him to “proactively” monitor the loan situation.
“Rosneft, a majority Russian government-owned oil company run by Putin crony Igor Sechin, could acquire a significant ownership share in CITGO Petroleum Corporation’s Venezuelan parent company, Petroleos de Venezuela S.A. (PdVSA), if PdVSA defaults on a loan backed by Rosneft,” according to the letter. “Venezuela’s current economic crisis is undermining PdVSA’s financial stability, increasing the possibility of default.”
Menendez pointed out that Citgo owns and operates 48 petroleum product terminals in 20 states, including New Jersey, Texas, Louisiana and Illinois.
