Don't miss

Replay


LATEST SHOWS

INSIDE THE AMERICAS

Indigenous peoples: Fighting discrimination

Read more

MIDDLE EAST MATTERS

From Turkey to Iran: (re)inventing kebab

Read more

THE INTERVIEW

Paleontologist Kenneth Lacovara: ‘Dinosaurs were the last great champions’

Read more

THE INTERVIEW

Alan Turing's nephew: ‘A Shakespearean tragedy surrounded his life’

Read more

EYE ON AFRICA

Zimbabwe: Chamisa's lawyers contest election results in court

Read more

THE WORLD THIS WEEK

New US sanctions on Iran: Trump ups pressure after exiting nuclear deal

Read more

IN THE PRESS

‘Space Farce’? Alternative logos for new US military branch flood social media

Read more

EYE ON AFRICA

Zambia accused of illegal handover of Zimbabwean opposition figure

Read more

MEDIAWATCH

#MyCameraIsMyWeapon campaign takes on Iran's mandatory hijab law

Read more

PDVSA appeals US ruling allowing Canadian firm to seize Citgo shares

© GETTY IMAGES NORTH AMERICA/AFP | Losing Citgo would dry up one of Venezuela's last remaining sources of foreign revenue

WASHINGTON (AFP) - 

Venezuela's state oil company PDVSA on Friday appealed a US court ruling that would allow a Canadian mining company to seize shares of PDVSA's US-subsidiary Citgo in payment of a $1.2 billion debt.

The case dates from 2011, when the Venezuelan government seized a mine Crystallex had been awarded and despite a settlement through an arbitration panel Caracas failed to repay the company.

US District Court Judge Leonard Stark ruled Thursday the mining firm could seize Citgo shares from PDVSA, although the order will not be issued until final details are worked out.

He rejected PDVSA's argument that it is separate from the government in Caracas and should not be held liable, favoring the assertion that the company is an "alter ego" of the government.

It is another blow to the embattled government of President Nicolas Maduro, who has overseen the collapse of the nation's once-thriving oil-based economy, which is now in default.

Thousands of Venezuelans flee the country daily, malnutrition is rife and the International Monetary Fund said inflation could reach one million percent this year.

PDVSA, once the jewel in the crown of the nation's economy, has been hamstrung by debt and lack of investment that has shrunk output.

Losing Citgo would dry up one of the last remaining sources of foreign revenue. And even that is already at risk since a nearly 50 percent stake in Citgo was used as collateral for a $1.5 billion loan from Russia's Rosneft.

PVDSA's bonds represent 30 percent of Venezuela's external debt -- estimated to be around $150 billion.

© 2018 AFP