Where is the Outrage on Erdogan’s Visit to DC?

Notice in the video the men dressed in black suits, further notice the capitol police, they look like Keystone cops. What is also curious, all foreign dignitaries are protected while in country by our diplomatic security staff….see any? As an aside, 2 Secret Service agents were injured however.

Image result for turkey protests dc

In fairness, John McCain expressed outrage:

Sen. John McCain (R., Ariz.) on Thursday morning called for throwing the Turkish ambassador out of the United States in response to Turkish officials beating a crowd of protesters in Washington this week.

McCain started his interview on MSNBC’s “Morning Joe” with his call to remove the Turkish diplomat.

“I’m still outraged at this Turkish beating,” McCain said. “We should throw their ambassador the hell out of the United States of America.”

“This is the United States of America, this isn’t Turkey, this isn’t a third-world country, and this kind of thing cannot go un-responded to diplomatically and maybe in other ways,” McCain continued.

Host Joe Scarborough asked what the United States could do in response to the attack on protesters by Turkish security officials.

McCain again advocated throwing out the Turkish ambassador and said the guards had orders from someone to attack the protesters. The senator called for charges against those involved.

“You cannot have that happen in the United States of America,” McCain said. “People have the right in our country to peacefully demonstrate and they were peacefully demonstrating.”

More detail and background…..

IPT: The man with the bullhorn already had been knocked to the ground, repeatedly kicked and beaten. Then the man with a mustache, wearing a sharp suit and a handgun on his hip, raced up and launched a fierce kick, hitting the man with the bullhorn square in the face.

The man with the bullhorn was protesting visiting Turkish President Recep Tayyip Erdogan. The man with the mustache is an Erdogan bodyguard. This beat-down, captured on video by the Voice of America, took place Tuesday, just 1.4 miles from the White House, where Erdogan met with President Trump.

Nine people were injured, including two who required hospitalization. A similar, but smaller brawl broke out last year when Erdogan was greeted by protesters outside a speech at the Brookings Institution.

The State Department issued a statement Wednesday saying it would tell the Turkish government that it is “concerned by the violent incidents …. Violence is never an appropriate response to free speech, and we support the rights of people everywhere to free expression and peaceful protest.”

It’s difficult these days for stories outside the White House’s struggle to contain the Russia investigation to gain much traction.

But events in and near the White House Tuesday should not get lost in the shuffle. Even without the violence by Erdogan’s goon squad, his White House visit should concern those who expected the Trump administration to follow through on its tough talk about confronting radical Islam.

For all the talk about naming radical Islamic terrorism where it exists, there appears to have been no mention of Turkey’s ongoing support for the Muslim Brotherhood and its terrorist offshoot Hamas. Rather, President Trump publicly lauded Erdogan, saying it was an honor to host him and that he looked forward to working together to create Middle East peace.

Erdogan is a favorite of U.S.-based Islamists, especially those with Muslim Brotherhood links, like Council on American-Islamic Relations (CAIR) Executive Director Nihad Awad. That may be due, at least in part, to his view that Hamas is not a terrorist group, but a national liberation movement.

Erdogan provided a safe haven for Hamas operative Salah Arouri even after Arouri was implicated in the deadly kidnapping of three Israeli teens that led to the summer 2014 war between Israel and Hamas in Gaza. In that conflict, Erdogan predicted that Israel would “drown in the blood that they shed,” and likened the Jewish state to Adolph Hitler: “Just like Hitler tried to create a pure Aryan race in Germany, the State of Israel is pursuing the same goals right now.”

Arouri was asked to leave Turkey only last year, as part of an effort to restore diplomatic relations between Israel and Turkey – relations Erdogan severed in 2010.

But that doesn’t mean Erdogan has turned a corner. In February, Turkey hosted a meeting of Hamas officials and affiliates. Last week, Erdogan repeated the baseless claim that Israel is an apartheid state, asking, “What’s the difference in Israel’s current practices from the racist and discriminatory policies implemented towards the blacks in America in the past, and in South Africa more recently?”

The ignorant talking point ignores the equal voting rights enjoyed by Israeli Arabs. The International Committee of the Red Cross rejected Erdogan’s rhetoric outright: “There isn’t a regime here that is based on the superiority of one race over another; there is no disenfranchisement of basic human rights based on so-called racial inferiority.”

In addition, Erdogan was slow to stem the tide of foreign fighters crossing his border in order to join ISIS in Syria. When he does act, he often targets U.S.-backed Kurdish forces fighting ISIS – a stateless minority Turkey oppresses.

While Erdogan and Trump praised each other publicly, ABC reports that “they made little progress to deal with their sharp differences on issues like terrorism and Syria.”

Erdogan, meanwhile, has purged tens of thousands of government employees, teachers and jailed scores of journalists in a clamp-down on any potential opposition. His crackdown is not limited to his own borders, as European critics have been targeted for arrest and surveillance.

Under his rule, Turkey’s secular education system has been weakened as religious training schools known as imam hatipgrew more than 15 times in enrollment since 2003. His radical Islamist Justice and Development Party (AKP) wants Turkey to be governed by an Islamist authority that demands adherence to strict religious tenets.

The White House meeting lasted about 20 minutes, McClatchy reports. Beforehand, 81 members of Congress issued a statement urging the president to raise Erdogan’s human rights abuses in the meeting.

“Erdogan and his allies have mounted an assault on the rule of law, particularly using sweeping state of emergency authorities to stifle fundamental rights including free speech, undermine the independence of the judiciary, and quash any opposition to their undemocratic actions,” they wrote.

There is no indication whether that topic was discussed. After the meeting, Erdogan expressed appreciation for the president’s hospitality. That’s fine, but the failure to openly challenge Erdogan’s increasingly Islamist, authoritarian direction is disappointing. Turkey’s help is needed in the fight against ISIS. But if the United States intends to confront radical Islam, it missed a golden opportunity on Tuesday.

President Trump did ask that Turkey release jailed American pastor Andrew Brunson, the White House readout of the meeting said. The two leaders also plan to meet again next week during the president’s first official international trip.

Unless he challenges Erdogan then, the lasting images of this will be the unprovoked violence Erdogan’s armed bodyguards inflicted on peaceful demonstrators in the heart of the nation’s capital instead of a direct and honest challenge to Erdogan’s ongoing and egregious support for Islamist terrorists.

Will Mueller’s Russian Probe Include Viktor Medvedchuk?

Primer: Remember the media told us and the polls told us Hillary would win. When Trump prevailed, the left went into action in earnest and that is being aided by television and print media. All things Russia will be in our daily lives for a long while and there is good cause for that. There are truths that are being omitted, frankly we need complete truth, wherever it leads. For the sake of the country and gaining any kind of confidence in political leaders, the double edged sword will draw blood.

So, here we go and will Robert Mueller and his team perform and provide a final report that is honest, complete and true? America needs President Trump to succeed, of this there is no question. There is a legislative agenda that must advance.

Read on.

Image result for viktor medvedchuk

When it comes to Moscow’s long term operation to bring Ukraine under Russian influence, Medbedchuk is Putin’s man. Viktor Medvedchuk continues to work diligently to keep Ukraine from any membership into the European Union or NATO. As an aside, Viktor is also the god-father to Putin’s daughter Darina.

With historical targets by the Kremlin to hold power over Ukraine, Medvedchuk was trusted by the KGB/FSB using all the normal KGB tactics.

Viktor is a Russian oligarch with extravagant taste and is said to be worth $800 million.

yacht Royal Romance

Superyacht Royal Romance, owned by Ukrainian oligarch Viktor Medvedchuk

P4-GEM Viktor Medvedchuk

Medvedchuk’s private jet with registration P4-GEM

So, why is Medvedchuk important? He has some nasty history inside Ukraine. Further, those members of the Trump campaign and transition team had communications with Medvedchuk. Would one of those on the Trump team be Paul Manafort? Yes, glad you asked. Manafort was tapped to aid Yanukovych’s victory as Prime Minister of Ukraine until matters fell apart and he fled Ukraine for Russia. Manafort was in country when this occurred and stayed in Ukraine to rally old supporters and create a new party that would oppose pro-Westerner Poroshenko and alter the parliament. That black ledger discovered by a Ukraine government investigations shows that Manafort was paid $12.7 million for his work.

A side note, the law firm Wilmer Hale, is where Reginald Brown is representing Paul Manafort, happens to be the same law firm that now independent counsel for the Russian probe, Robert Mueller worked. So, is this new independent investigation a ploy due to history and conflicts of cases and legal representation? Humm, let’s continue.

***

Exclusive: Trump campaign had at least 18 undisclosed contacts with Russians: Sources

Michael Flynn and other advisers to Donald Trump’s campaign were in contact with Russian officials and others with Kremlin ties in at least 18 calls and emails during the last seven months of the 2016 presidential race, current and former U.S. officials familiar with the exchanges told Reuters.

The previously undisclosed interactions form part of the record now being reviewed by FBI and congressional investigators probing Russian interference in the U.S. presidential election and contacts between Trump’s campaign and Russia.

Six of the previously undisclosed contacts described to Reuters were phone calls between Sergei Kislyak, Russia’s ambassador to the United States, and Trump advisers, including Flynn, Trump’s first national security adviser, three current and former officials said.

Conversations between Flynn and Kislyak accelerated after the Nov. 8 vote as the two discussed establishing a back channel for communication between Trump and Russian President Vladimir Putin that could bypass the U.S. national security

bureaucracy, which both sides considered hostile to improved relations, four current U.S. officials said.

In January, the Trump White House initially denied any contacts with Russian officials during the 2016 campaign. The White House and advisers to the campaign have since confirmed four meetings between Kislyak and Trump advisers during that time.

The people who described the contacts to Reuters said they had seen no evidence of wrongdoing or collusion between the campaign and Russia in the communications reviewed so far. But the disclosure could increase the pressure on Trump and his aides to provide the FBI and Congress with a full account of interactions with Russian officials and others with links to the Kremlin during and immediately after the 2016 election.

The White House did not respond to requests for comment. Flynn’s lawyer declined to comment. In Moscow, a Russian foreign ministry official declined to comment on the contacts and referred Reuters to the Trump administration.

Separately, a spokesman for the Russian embassy in Washington said: “We do not comment on our daily contacts with the local interlocutors.”

The 18 calls and electronic messages took place between April and November 2016 as hackers engaged in what U.S. intelligence concluded in January was part of a Kremlin campaign to discredit the vote and influence the outcome of the election in favor of Trump over his Democratic challenger, former secretary of state Hillary Clinton.

Those discussions focused on mending U.S.-Russian economic relations strained by sanctions imposed on Moscow, cooperating in fighting Islamic State in Syria and containing a more assertive China, the sources said.

Members of the Senate and House intelligence committees have gone to the CIA and the National Security Agency to review transcripts and other documents related to contacts between Trump campaign advisers and associates and Russian officials and others with links to Putin, people with knowledge of those investigations told Reuters.

The U.S. Justice Department said on Wednesday it had appointed former FBI Director Robert Mueller as special counsel to investigate alleged Russian meddling in the U.S. presidential campaign and possible collusion between Trump’s campaign and Russia. Mueller will now take charge of the FBI investigation that began last July. Trump and his aides have repeatedly denied any collusion with Russia.

‘IT’S RARE’

In addition to the six phone calls involving Kislyak, the communications described to Reuters involved another 12 calls, emails or text messages between Russian officials or people considered to be close to Putin and Trump campaign advisers.

One of those contacts was by Viktor Medvedchuk, a Ukrainian oligarch and politician, according to one person with detailed knowledge of the exchange and two others familiar with the issue.

It was not clear with whom Medvedchuk was in contact within the Trump campaign but the themes included U.S.-Russia cooperation, the sources said. Putin is godfather to Medvedchuk’s daughter.

Medvedchuk denied having any contact with anyone in the Trump campaign.

“I am not acquainted with any of Donald Trump’s close associates, therefore no such conversation could have taken place,” he said in an email to Reuters.

In the conversations during the campaign, Russian officials emphasized a pragmatic, business-style approach and stressed to Trump associates that they could make deals by focusing on common economic and other interests and leaving contentious issues aside, the sources said.

Veterans of previous election campaigns said some contact with foreign officials during a campaign was not unusual, but the number of interactions between Trump aides and Russian officials and others with links to Putin was exceptional.

“It’s rare to have that many phone calls to foreign officials, especially to a country we consider an adversary or a hostile power,” Richard Armitage, a Republican and former deputy secretary of state, told Reuters.

FLYNN FIRED

Beyond Medvedchuk and Kislyak, the identities of the other Putin-linked participants in the contacts remain classified and the names of Trump advisers other than Flynn have been “masked” in intelligence reports on the contacts because of legal protections on their privacy as American citizens. However, officials can request that they be revealed for intelligence purposes.

U.S. and allied intelligence and law enforcement agencies routinely monitor communications and movements of Russian officials.

After Vice President Mike Pence and others had denied in January that Trump campaign representatives had any contact with Russian officials, the White House later confirmed that Kislyak had met twice with then-Senator Jeff Sessions, who later became attorney general.

Kislyak also attended an event in April where Trump said he would seek better relations with Russia. Senior White House adviser Jared Kushner, Trump’s son-in-law, also attended that event in Washington. In addition, Kislyak met with two other Trump campaign advisers in July on the sidelines of the Republican convention.

Trump fired Flynn in February after it became clear that he had falsely characterized the nature of phone conversations with Kislyak in late December – after the Nov. 8 election and just after the Obama administration announced new sanctions on Russia. Flynn offered to testify to Congress in return for immunity from prosecution but his offer was turned down by the House intelligence committee.

 

 

Mueller, Zebley, Quarles Named Special Counsel, Russia Probe

It is important to note, this is not a special prosecution team, it is a legal investigative team. All three lawyers have formally resigned their positions, which is required from the law firm Wilmer Cutler Pickering Hale and Dorr.

Image result for robert mueller Robert Mueller

From the National Law Journal in part: Zebley was Mueller’s former chief of staff at the FBI and Quarles worked as an assistant special prosecutor for the Watergate investigation. Mueller worked on a range of issues including cybersecurity, criminal litigation and internal investigations. Last year, he was appointed to oversee settlement negotiations in class action lawsuits over Volkswagen A.G.’s emissions scandal.

The task of this team is solely to investigate the matter of Trump’s campaign operatives having any cooperation or interaction with any Russian entities into the campaign infrastructure in 2016.

Mueller served as U.S. Attorney for the Northern District of California prior to joining the FBI. He graduated from Princeton University in 1966 and went on to receive his J.D. from the University of Virginia. Mueller has gained the approval of the ACLU, former Attorney General and head of Main Justice, Eric Holder as well as many democrats in both chambers of Congress.

Another partner at the law firm, is Reginald Brown, who worked in the Bush White House and runs the firm’s financial institutions group and congressional investigations practice, is advising Paul Manafort as of this spring. Manafort, who ran Trump’s presidential campaign for six months, may be ensnared in the Russia investigation because of a consulting client he represented in Ukraine who had ties to the Kremlin.

Top Clinton administration alumni at Wilmer include former Solicitor General Seth Waxman and former Deputy Attorney General Jamie Gorelick, who’s boosted her own resume in recent months by advising Ivanka Trump and Jared Kushner on government ethics.

“I determined that it is in the public interest for me to exercise my authorities and appoint a special counsel to assume responsibility for this matter,” Mr. Rosenstein said in a statement. “My decision is not a finding that crimes have been committed or that any prosecution is warranted. I have made no such determination.”

While a special counsel would remain ultimately answerable to Mr. Rosenstein — and by extension, the president — he would have greater autonomy to run an investigation than a United States attorney would. Mr. Mueller will be able to choose to what extent to consult with or inform the Justice Department about his investigation as it goes forward.

“He’s an absolutely superb choice,” said Kathryn Ruemmler, a former prosecutor and White House counsel under Mr. Obama. “He will just do a completely thorough investigation without regard to public pressure or political pressure.”

She added: “I cannot think of a better choice.”

John S. Pistole, who served as the F.B.I.’s deputy director under Mr. Mueller, also praised the appointment.

“You need an independent assessment of what the president has done, how he has done it and perhaps why he has done it,” said Mr. Pistole, who is now president of Anderson University in Indiana. “The appointment of Director Mueller is exactly what is needed to attempt to bring credibility to the White House when there are so many questions about the president’s actions and motives.”

The order to appoint Mr. Mueller was signed by Mr. Rosenstein on Wednesday, drawing on a regulation granting the attorney general the authority to appoint a special counsel for only the second time in history. The first time it was used was in 1999 by Janet Reno, who appointed Jack Danforth, a former Republican senator from Missouri, to lead an investigation into the botched federal raid on the Branch Davidian compound in Waco, Tex., in 1993 that killed 76 people.

In his capacity as special counsel, Mr. Mueller will be able to request additional resources for the investigation. Those requests will be reviewed by Lee Lofthus, assistant attorney general for administration. More here.

The Trump White House only had this response to the naming of this team:

There is no information that has been released how this legal team will address matters relating to Hillary Clinton, John Podesta or other related issues. It should be noted that only last week, did the Senate Democrats that are also part of a Senate Intelligence Committee investigation on similar Russian probes hired April Doss. Doss held an early career at the NSA and just resigned also from her law firm of Saul Ewing.

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Both Mueller’s law firm and Doss’ law firm each has legal specialties in the cyber industry.

One last item, since Paul Manafort was mentioned above:

Former Trump campaign manager Paul Manafort took out a $3.5 million mortgage through a shell company just after leaving the campaign, but the mortgage document that explains how he would pay it back was never filed — and Manafort’s company never paid $36,000 in taxes that would be due on the loan.

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On August 19, 2016, Manafort left the Trump campaign amid media reports about his previous work for a pro-Russian political party in Ukraine, including allegations he received millions of dollars in payments.

That same day, Manafort created a holding company called Summerbreeze LLC. Several weeks later, a document called a UCC filed with the state of New York shows that Summerbreeze took out a $3.5 million loan on Manafort’s home in the tony beach enclave of Bridgehampton.

Manafort’s name does not appear on the UCC filing, but Summerbreeze LLC gives his Florida address as a contact, and lists his Bridgehampton home as collateral.

1000+ Officers Raid, 44 Arrests

Image result for ms-13 raid los angeles NY Daily News

Primer: The LATimes reports:

Shortly after 4 a.m. Wednesday, heavily-armed ATF agents — wearing helmets and bulletproof gear and carrying rifles — forced their way into a storefront and a back building near Exposition Boulevard and Western Avenue in Exposition Park. Agents approached in an armored vehicle down a narrow alleyway behind the small business.

Once inside, federal agents and police detectives found what they described as gang members involved in human trafficking, as well as possible victims. The storefront, which appeared to be locked from the outside, was full of garbage.

A few of the people detained were handcuffed and lined up facing a metal fence in the alleyway next to the armored vehicle.

The indictment names the former leader of the gang and a dozen people who acted as a joint council of leaders, Brown said.

The lead defendant in the indictment is 43-year-old Jose Balmore Romero, known as “Porky.” Romero called the shots for the gang in Los Angeles in 2013 and 2014 and oversaw the gang’s drug-trafficking activities and coordinated the collection of extortion money, some of which was distributed to the Mexican Mafia, according to the U.S. attorney’s office in Los Angeles. Romero has been in custody since 2015, charged with ordering a gang-related slaying.

Three men were charged with murder in connection with the gang’s activities, authorities said. Carlos Alfredo Cardoza Lopez, 23, known as “Little Boy,” faces a violent crime in aid of racketeering murder charge in the fatal shooting of a innocent bystander inside the gang-controlled Little San Salvador Nightclub and Restaurant on Western Avenue, federal prosecutors said in a statement. A friend of the victim also was stabbed. More here.

Associated Press

Indictment document is here.

Dozens of MS-13 gang members nabbed in 50 Los Angeles raids

Los Angeles (CNN)Hundreds of federal and local authorities stormed homes and storefronts across Los Angeles early Wednesday, targeting dozens of high-ranking members of the notorious MS-13 street gang.

The 50 pre-dawn raids, aimed at catching suspects asleep or off guard, also focused on nabbing members of MS-13’s core leadership, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) said.
“Today we disrupted this gang’s command and control,” said Eric Harden, special agent in charge of the ATF’s Los Angeles field division.
Los Angeles is the US base for MS-13, which has tens of thousands of members worldwide. Authorities count the gang among the largest criminal organizations in the US.
More than half of the 44 people arrested Wednesday are undocumented immigrants, acting US Attorney Sandra Brown said.
But the raids aimed to curb violent crime — not immigration violations, Los Angeles Police Chief Charlie Beck said. He said MS-13 often “preys on” undocumented immigrants.
The suspects face a wide range of charges, including federal racketeering and narcotics conspiracy. If convicted, Brown said, most of those arrested Wednesday could face decades in federal prison — and three could face the death penalty.
About 1,000 officers from the ATF, the FBI, the Drug Enforcement Administration, US Immigration and Customs Enforcement, the Los Angeles Police Department and the Los Angeles County Sheriff’s Department took part worked on the massive effort.
And they had to execute their plan in the dark of night.

An inside look into a raid

Authorities conduct one of 50 simultaneous raids targeting MS-13 gang members.

CNN’s was the only TV crew that accompanied authorities during the raids.
At 4 a.m., a dozen ATF agents poured out of an armored vehicle, preparing to break open the front and back doors of an inconspicuous store just outside downtown. The storefront they hit was a suspected hub for MS-13.
Rifle-wielding officers suited in body armor and helmets appeared ready for combat. With the element of surprise on their side, agents peacefully took half a dozen people into custody.
One by one, they came out in handcuffs. Some were suspected gang members; some may be victims of human trafficking, authorities said.
A storefront might seem like an odd place to find notorious gang suspects. But MS-13 members have been known to live in storefronts and have been suspected of using them as a cover for drug activity, prostitution and human trafficking.

Investigation goes deep

Federal agents say the probe, which began in June 2014, targeted the leadership and the most violent members of MS-13 in Los Angeles and the gang’s links to the Mexican mafia.
“We believe the most impact is made by targeting the mid- to upper-level hierarchy of the gang and removing them,” Harden said.
“Once removed, it causes a disorganization of the gang, where it suppresses their activity for an extensive amount of time until another leader is developed or steps up.”
MS-13 makes money from extortions, kidnappings, drug and weapons trafficking and human trafficking, the ATF said. Killings for the protection of the gang are common, federal authorities say, and sometimes are carried out with machetes.
Harden has faced off with MS-13 for decades, dating back to his days as a street agent.
“They’ve been here since the ’80s and have thrived to this date,” said Harden. “They’re a transnational or international gang. Their level of brutality is extreme and high, similar to what we read about and hear with the drug-trafficking cartels in Mexico.” More here from CNN.

Russia’s Move to Own Citgo, Rosneft is Sanctioned

Primer:

From the gasoline that helps your family take vacations to the advanced medical equipment at your community hospital, CITGO is fueling good.

Image result for cities service signs Image result for cities service signs

It’s amazing the difference petroleum-based products make in our everyday lives. Based in Houston, Texas, CITGO is a refiner and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. In addition to these products, there’s probably a CITGO in your neighborhood, a convenient place to fill up with gas and grab a quick snack.

The story of CITGO Petroleum Corporation as an enduring American success story began back in 1910 when pioneer oilman, Henry L. Doherty, created the Cities Service Company.

When Cities Service determined that it needed to change its marketing brand, it introduced the name CITGO in 1965, retaining the first syllable of its long-standing name and ending with “GO” to imply power, energy and progressiveness. The now familiar and enduring CITGO “trimark” logo was born.

Occidental Petroleum bought Cities Service in 1982, and CITGO was incorporated as a wholly owned refining, marketing and transportation subsidiary in the spring of the following year. Then, in August, 1983, CITGO was sold to The Southland Corporation to provide an assured supply of gasoline to Southland’s 7-Eleven convenience store chain.

In September, 1986, Southland sold a 50 percent interest in CITGO to Petróleos de Venezuela, S.A., (PDVSA), the national oil company of the Bolivarian Republic of Venezuela. PDVSA acquired the remaining half of CITGO in January, 1990 and the company is owned by CITGO Holding, Inc., an indirect, wholly owned subsidiary. With a secure and ample supply of crude oil, CITGO quickly became a major force in the energy arena.

Russia To Become Second-Largest Foreign Owner Of U.S. Domestic Refineries, If Venezuela Defaults

Venezuela’s state-owned oil company, Petroleos de Venezuela (PDVSA), has owned Citgo, an American refiner with headquarters in Houston, Texas, since the 1980s. At the end of 2016, cash-strapped Venezuela, in the throes of a combined economic and political crisis,[1] put up a large stake (49.9%) in Citgo as collateral in exchange for a loan from the Russian state-owned oil company Rosneft. Should PDVSA default on the loan, Rosfnet will gain control over Citgo. It is noteworthy that the U.S. imposed sanctions on Rosfnet following Russia’s seizure of Crimea in 2014.

On May 3, a bipartisan group of U.S. Senators introduced a wide-ranging bill calling for sanctions against the Venezuelan government and demanding President Donald Trump to prevent a deal struck by PDVSA and Rosfnet. CBS News reported: “The bill calls for the [U.S.] State Department to coordinate an international response to the crisis in Venezuela… In addition, a section of the bill highlights a Nov. 30 loan given by Russia’s state-owned oil company, Rosneft, to Venezuela’s state-owned oil company PDVSA. The deal would allow the Russian company to take control of nearly half of the U.S. oil company Citgo, which PDVSA owns, if Venezuela defaults on its debts.

“Influential senators from both parties sponsored the bill, including Senators Ben Cardin, D-Md.; Marco Rubio, R-Fla.; John Cornyn, R-TX; Dick Durbin, D-Ill.; John McCain, R-Ariz.; Bill Nelson, D-Fla.; Tim Kaine. D-Va.; Chris Van Hollen, D-Md. and Bob Menendez, D-NJ.”[2]

Earlier, Republican Congressman Jeff Duncan and Democratic Congressman Albio Sires sent a letter to U.S. Secretary of Treasury Steven Mnuchin, asking him to undertake an “immediate review of a recent asset transfer between Venezuela’s state-owned oil company. PDVSA, and Rosneft, which is under U.S. sanctions. The situation, if left unchecked, could severely undermine U.S. national security and energy independence.”[3]

On April 14, the Russian media outlet Vestifinance.ru, published an article titled “Rosneft And Citgo: Risk Or Anti-Russian Hysteria?” The article stated that U.S. lawmakers’ actions against The PDVSA-Rosneft deal are prompted by anti-Russian “hysteria.” Vestifinance.ru wrote: “By an amazing coincidence, a letter to Mnuchin was written just before U.S. Secretary of State Rex Tillerson’s visit to Moscow. And as long as relations between Moscow and Washington are not improved significantly, politicians will keep finding new pretexts to incite fears.”

Below are excerpts from the Vestifinance.ru article:[4]

(Source: Rt.com)

PDVSA Still Owes Russia $62 billion

“PDVSA, the Venezuelan state-owned oil company, has paid off its [Russian] loan along with interest in the amount of $2.2 billion. This is good news as PDVSA avoided a default. However, the Vice President [of Venezuela] Tarik El Aissami characterized the situation as ‘a merciless economic war’ being waged against the Maduro government. The bad news is that PDVSA still owes [Russia] $62 billion.

“It is well-known that some members of the U.S. Congress are quite concerned about a possible default by Venezuela, since Russian-owned Rosneft can then get access to the American company Citgo. Citgo owns 48 oil terminals in 20 U.S. states as well as 3 oil refineries. It is the control of Rosneft over the American refineries that worries lawmakers the most.

“‘The Russian government could readily become the second-largest foreign owner of U.S. domestic refinery capacity. Such a development would give the Russians more control over oil and gas prices worldwide, inhibit U.S. energy security, and undermine broader U.S. geopolitical efforts’, [U.S. congressmen] wrote in a letter to Treasury Secretary Steve Mnuchin. ‘We remain deeply concerned over the implications for U.S. national security.’

How Rosneft Can Take Over CITGO

“Venezuela has been desperate for cash lately. Petroleos de Venezuela (PDVSA), the Venezuelan state-owned oil company, has owned Citgo since the 1980s. In exchange for obtaining a loan from Rosneft in December, the Venezuelan oil company put up a large stake (49.9%) in Citgo as collateral. If PDVSA is unable to pay off the loan on time, Rosneft will almost certainly gain control over Citgo. All Rosneft would need for a majority share would be to buy a few more PDVSA bonds, thus clearing the 50% threshold of ownership.

[Rosneft] Is Not Going To Waste Money For The Illusory Opportunity To Harm The U.S.’

“The concerns expressed by [the U.S] congressmen are rather strange. What exactly is Rosneft going to do with three oil refineries? U.S. politicians believe that the Russian company will be able to take part in a conspiracy that will lead to a restriction of gasoline production, raise gas prices and thus cause damage to the U.S. national security or the American economy. This is plain silly. Even though Rosneft is a state-owned company, its purpose is still making profit, and it is not going to waste money for the illusory opportunity to harm the U.S. And the scenario offered by congressmen has no bearing on reality whatsoever. “Three refineries is a mere drop in the ocean compared to the rest of the U.S. oil assets. Even assuming that production could be reduced at these refineries, this may at most affect one region in the short term, but then other producers will quickly capture the market and stabilize it. And so if Rosneft takes over Citgo, it will simply produce and sell gasoline in the U.S., making money on it, rather than making insane plans to threaten the U.S. national security.

“Reports in the U.S. media treat the lawmakers’ letter with a healthy dose of irony and that is why it is difficult to avoid the conclusion that the congressmen are deliberately trying to incite anti-Russian fears. By an amazing coincidence, a letter to Mnuchin was written just before U.S. Secretary of State Rex Tillerson’s visit to Moscow. And as long as relations between Moscow and Washington are not improved significantly, politicians will keep finding new pretexts to incite fears.

“As far as Venezuela is concerned, yielding control of Citgo is a good way to reduce its debt burden. Most likely, this will happen no later than in the fall of 2017, since there is very little chance its economy will stabilize. Most likely, Venezuela will default and begin to restructure its debt this year. According to the credit-default swaps market, investors estimate the chances of Venezuela’s default in the next six months at 41%. And in March that indicator was below 34%.”

(Source: Latinamericapost.com)

 

 

[1] See MEMRI Special Dispatch N. 6903, Russia’s Support For The Venezuelan Regime – An Update, May 2, 2017.

[2] Cbsnews.com, May 3, 2017.

[3] See letter sent by Congressmen Jeff Duncan and Albio Sires.

[4] Vestifinance.ru, April 14, 2017.