The Paradox of Citgo, an Arm of Venezuela

“Last weekend, President Chavez of Venezuela visited Fidel Castro. The two men are much in sync, and Mr. Castro no doubt approves of Mr. Chavez’s use of a national oil company, Petróleos de Venezuela, or PDVSA, to expropriate the property of American companies, including Exxon Mobil and ConocoPhillips, and to rewrite the contracts of other oil companies such as Chevron.

The vulnerability of American businesses in Venezuela stands in contrast to the security that Venezuelan businesses enjoy in America. In addition to expropriating property in Venezuela, PDVSA owns one of the largest petroleum refining and distribution companies in America, Citgo.”*

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