Citgo cuts ties with Venezuelan parent company PDVSA to comply with US sanctions

The American refiner Citgo Petroleum Corp officially cut ties with his parent company, state oil company Petróleos de Venezuela (PDVSA), to comply with the sanctions imposed by the United States to the Caribbean country, told Reuters on Tuesday two sources informed of the decision.

The leaders of the Houston-based company set the deadline of February 26 terminate business relationships with PDVSA, after the sanctions applied by the Donald Trump government block dictator Nicolás Maduro's access to the nation's oil revenues and support a transitional government formed by the leader of the opposition and Juan Guaidó.

The United States, Canada and a dozen other countries have recognized Guaidó as Venezuela's legitimate president, but Maduro continues to control the armed forces, public institutions and the armed forces. PDVSA, responsible for 90% of the export earnings of the OPEC member.

Citgo has ceased payments to its parent company, subscriptions to corporate services, email communications and downgraded mentions to PDVSA in advertising media and your website.

A spokesperson for Citgo, however, did not respond to requests for comment.

The company is trying to get rid of the sanctions that have hindered access to funding. In addition gives priority to the refinancing of a revolving credit and a loan to be completed in July, sources said.

"They told us that we had to put the house in order for February 26 and avoid coming into conflict with the sanctions", said one of the sources.

A new Citgo Board of Directors was appointed this month by the National Assembly of Venezuela under the guidance of the consulting firm. Luisa Palacios, that last week appointed a leadership team led by Rick Esser, the new executive vice president of the company.

Citgo is the main Venezuelan badet abroad. It is the eighth largest refiner in the United States. It can handle approximately 750,000 barrels of oil per day and feed a network of 5,000 service stations in 30 US states.

With information from Reuters (Report of Marianna Parraga in Mexico, edited in Spanish by Manuel Farías)