Govt in Healthcare Causing Critical Doctor Shortage

Affording medical school, impossible, paying back college loans, impossible, paying all the administrative/paperwork labor costs in practice, impossible, relying on prompt payments from government on Medicare, impossible, care by government compliance standards, impossible.

Burnout = Probable

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Blame Obamacare and Congress for the coming drought of doctors

When you go to the Internet or phone book today, there are hundreds of physicians listed in most urban areas. But in the next two decades, you can expect more difficulty finding a physician in your hometown — a major physician shortage is looming, thanks to Obamacare and Congress.

In the last year, I have seen many mid-career physicians leaving the practice of medicine. While the growth of mid-level hospital administrators has ballooned by nearly 3,000 percent in the last 30 years, fewer students are entering medical school. In fact, according to Compdata surveys, hospital administrators now account for a large proportion of the costs of healthcare.

The pending physician shortage will affect both primary care as well as numerous essential subspecialties. When I was in medical school, I was told that specialists, such as cardiologists, would be in abundance and I would not be able to get a job. My classmates and I were pushed towards jobs in primary care.

However, many of us chose to pursue our passions — for me, it was cardiovascular medicine. I have been a practicing cardiologist for almost 17 years now — I never had any issue with finding a job in my chosen field.

Based on a new report from the Association of American Medical Colleges, it is expected that we will see a shortfall of nearly 100,000 doctors by the year 2030. A closer look at the predictions show that we will have a shortage of 40,000 primary care physicians, as well as a shortage of nearly 60,000 physicians in specialties such as allergy and immunology, cardiology, gastroenterology, and infectious disease. In general surgery, the report predicts that there will be 30,000 fewer surgeons than are needed to provide care to those who need it.

Why Are Doctors Leaving Medicine?

A 2016 report from the Physicians Foundation found an alarming growth in burnout and dissatisfaction among practicing physicians — 47 percent of respondents in the survey indicated plans to “accelerate” their retirement and move into areas outside of clinical medicine.

The most common reason for leaving medicine included regulatory burdens and electronic health records. Nearly 63 percent indicated that they have negative feelings about the future of healthcare and only half of all physicians would actually recommend a career in medicine to their children. Many of my colleagues feel they have no voice and have no way to impact healthcare policy — even in their own institution.

As regulatory requirements and non-clinical tasks continue to mount, physicians are finding themselves spending less and less time with patients. According to 2016 research from the Annals of Internal Medicine, most doctors only spend 25 percent of their day engaging with patients — the bulk of the time is spent on non-clinical electronic and regulatory paperwork. In fact, for every hour of direct patient contact, physicians have an additional 2 hours of electronic paperwork.

Most of this is due to either mandatory electronic medical record coding (to help the hospital systems bill at the maximal levels) or due to government-mandated documentation (such as asking about gun use during office visits — most of which has never shown a survival or outcome benefit).

What Is the Solution?

These statistics should be incredibly troubling for all Americans seeking healthcare. With access already an issue in the healthcare system for many and more reforms on the way, we must do more to entice bright young minds to medicine—and retain those that are currently delivering care to millions of patients.

While the AAMC argues that the answer to averting a shortage lies in creating more training spots and allowing advanced practice nurses and physician assistants to do the work of trained physicians, the real answer to the pending crisis lies in Washington.

Congress must act to save healthcare. Years of Obamacare and the resulting increase in regulations applied to physicians have begun to erode the very core of medical care — the doctor-patient relationship. Physicians are now tasked with checking boxes and filling out forms rather than bonding with patients.

Congress has spent the first 6 months of this year simply posturing and grandstanding about healthcare rather than actually working on meaningful reform. Once again, no real physician input into the creation of a workable healthcare reform bill has been sought by those in Washington (reminiscent of how Obamacare was created). Those in Congress must listen and act now:

1. Limit Meaningless Electronic Paperwork

Currently doctors spend far too much time with electronic medical records. Electronic records, while touted to be a patient safety tool, are nothing more than a way for hospitals and healthcare systems to ensure that they are billing patients at the highest levels — capturing all possible charges. Physicians are forced to click through myriad pathways in the record in order to document their care and work and all of these pathways are carefully designed to maximize billing codes. Most doctors take home two or more hours of electronic documentation nightly in order to keep up with patient care loads.

We must streamline paperwork and balance documentation with patient care. Doctors should not be billers and coders for the healthcare system.

2. Remove Hospital Administrators from the Care Equation

In some institutions, there are more mid-level managers than physicians. These executives are not physicians and are not trained in the practice of medicine. Their primary focus is to increase market share for the healthcare system and to “manage” healthcare professionals by creating algorithms of care and regulations. Administrators will claim that their activities will help with quality improvement and patient safety. However, most of these individuals are highly compensated and I am not aware of any data that suggests their activities have ever been shown to improve patient outcomes. For most physicians, administrators are a mechanism for increasing cost of care.

Physicians should be part of the decision-making process in any healthcare system and should have a voice — currently there are very few physicians in the C-suite.

3. Remove Barriers to Patient Care

Nothing frustrates doctors more than not being able to provide care to patients. We must make healthcare more accessible and provide physicians with the resources they need to efficiently provide high-quality affordable care. We must promote the use of telemedicine and digital tools to enhance the doctor-patient interaction.

We must allow physicians and patients to build long term relationships and facilitate and promote engagement. No longer can we allow networks and insurers to dictate which doctor a patient can see — “If you like your doctor, you can keep your doctor.”

4. No Longer Allow Insurance Companies to Dictate Care

As a practicing physician, I spend a great deal of time battling with insurance companies over appropriate care for my patients. I find myself spending hours each week on the phone with an insurance company bureaucrat arguing that a particular test or therapy is indicated (even though these are supported by clinical guidelines) rather than caring for patients. We must not allow insurers to dictate how highly-trained physicians should care for their patients.

Insurers must abide by the practice guidelines and indications for tests and procedures that have been approved by major national organizations, such as the American College of Cardiology, for example.

 

 

 

State Dept. Spent $22.8 Mil to Resettle Muslim Refugees

A short list of VOLAGS  Image result for refugee resettlement

Church World Service (CWS)Visit disclaimer page

How lucrative is the resettlement business? Check out the summary document here.

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State Dept. Redacts Big Chunks of $22.8 Mil Contract to Resettle Muslim Refugees

The U.S. government spends billions of dollars to “resettle” foreign nationals and transparency on how the money is spent depends on the agency involved. Judicial Watch has been investigating it for years, specifically the huge amount of taxpayer dollars that go to “voluntary agencies”, known as VOLAGs, to provide a wide range of services for the new arrivals.

Throughout the ongoing probe Judicial Watch has found a striking difference on how government lawyers use an exemption, officially known as (b)(4), to the Freedom of Information Act (FOIA) to withhold records. All the cases involve public funds being used to resettle foreigners on U.S. soil and Americans should be entitled to the records.

The (b)(4) exemption permits agencies to withhold trade secrets and commercial or financial information obtained from a person which is privileged or confidential. Depending on the government agency and the mood of the taxpayer-funded lawyers handling public records requests, that information is exempt from disclosure. In these cases, the Department of Health and Human Services (HHS) disclosed a VOLAG contract to resettle tens of thousands of Unaccompanied Alien Children (UAC) that entered the U.S. through Mexico under the Obama administration while the State Department withheld large portions of a one-year, $22.8 million deal to resettle refugees from Muslim countries.

Most of the UACs came from El Salvador, Honduras and Guatemala and the Obama administration blamed the sudden surge on violence in the three central American nations. The agency responsible for resettling the minors and issuing contracts for the costly services is HHS.

As a result of Judicial Watch’s work HHS furnished records with virtually nothing redacted. Disclosed were employee salaries of VOLAGs contracted by the agency to provide services for the illegal immigrant minors, the cost of laptops, big screen TVs, food, pregnancy tests, “multicultural crayons” and shower stalls for the new arrivals. The general contract was to provide “basic shelter care” for 2,400 minors for a period of four months in 2014. This cost American taxpayers an astounding $182,129,786 and the VOLAG contracted to do it was government regular called Baptist Children and Family Services (BCFS). The breakdown includes charges of $104,215,608 for UACs at Fort Sill, Oklahoma and an additional $77,914,178 for UACs at Lackland Air Force Base in San Antonio, Texas.

HHS rightfully provided all sorts of details in the records, including the cost of emergency surge beds ($104,215,608) for just four months; food for the illegal alien minors and staff ($18,198,000); medical supplies such as first aid kits, latex gloves, lice shampoo and pregnancy tests ($1,120,400); recreation items such as board games, soccer balls and jump ropes ($180,000); educational items like art paper and multicultural crayons ($180,000); laptops ($200,000) and cellphones ($160,000). Hotel accommodations for the BCFS staff was $6,765,000, the records show, and the salary for a 30-member “Incident Management Team” was $2,648,800, which breaks down to $88,293 per IMT member for the four-month period. It was outrageous that the Obama administration spent nearly $200 million of taxpayer funds to provide illegal alien children with the types of extravagant high-tech equipment and lavish benefits many American families cannot even afford for their own children.

This has become a heated issue for the government which may explain why other agencies aren’t as forthcoming in providing specific figures, thus abusing the (b)(4) exemption. The State Department, for instance, redacted huge portions of records involving contracts with VOLAGs to resettle refugees from mostly Muslim countries.

The files illustrate the disparate redaction treatment given by different government agencies to the same types of records. The State Department paid a VOLAG called United States Conference of Catholic Bishops (USCCB) a ghastly $22,838,173 in one year to resettle refugees that came mostly from Muslim countries. Unlike HHS, the agency redacted information related to what the USCCB charged the government for things like furniture, personnel, equipment and other costs associated with contracts to resettle refugees. Why did one government agency hand over the same types of records that another agency claims are trade secrets? Judicial Watch is challenging the State Department’s (b)(4) exemption and will provide updates as they become available.

HHS and the State Department work with nine VOLAGs to resettle refugees and the voluntary agencies have hundreds of contractors they like to call “affiliates.” It’s a huge racket that costs American taxpayers monstrous sums and Judicial Watch is working to pinpoint the exact amount. Besides BCFS and USCCB, other VOLAGs with lucrative government gigs to resettle refugees are: Church World Service, Ethiopian Community Development Council, Episcopal Migration Ministries, Hebrew Immigrant Aid Society, International Rescue Committee, U.S. Committee for Refugees and Immigrants, Lutheran Immigration Refugee Services and World Relief Corporation.

U.S. is Doing ‘That’ Extreme Vetting in Australia

Remember on the campaign trail when President Trump said it was stupid to take the Syria refugees Australia was holding on a remote island that was under agreement by Barack Obama? Remember when there was a discussion between President Trump and the Prime Minister of Australia where apparently Trump hung up the phone, terminating the conversation. The Prime Minister visited the Trump White House and now all is allegedly fine between the two countries.Remember when VP Pence finally agreed to honor the deal and accept those refugees? The reason? The US. is accepting a number of those refugees.

Exclusive: U.S. starts ‘extreme vetting’ at Australia’s offshore detention centers

Reuters: U.S. Homeland Security officials have begun “extreme vetting” interviews at Australia’s offshore detention centers, two sources at the camps told Reuters on Tuesday, as Washington honors a refugee swap that U.S. President Donald Trump had called “a dumb deal”.

The Trump administration said last month the agreement to offer refuge to up to 1,250 asylum seekers in the centers would progress on condition that refugees satisfied strict checks.

In exchange, Australia has pledged to take Central American refugees from a center in Costa Rica, where the United States has expanded intake in recent years, under the deal struck with former President Barack Obama.

Image result for Papua New Guinea's Manus Island detention center DailyMail

The first security interviews finished last week at Papua New Guinea’s Manus Island detention center, two refugees who went through the process told Reuters.

The refugees told Reuters that interviews began with an oath to God to tell the truth and then proceeded for as long as six hours, with in-depth questions on associates, family, friends and any interactions with the Islamic State militant group.

Image result for Papua New Guinea's Manus Island detention center  VOANews

“They asked about why I fled my home, why I sought asylum in Australia,” said one refugee who declined to be named, fearing it could jeopardize his application for U.S. resettlement.

The security interviews are the last stage of U.S. consideration of applicants.

Manus Island is one of two Australian-operated detention centers, which hold nearly 1,300 people who were intercepted trying to reach Australia by boat.

Human rights groups have condemned the intercept policy and the harsh conditions of the camps. Australia says offshore processing is needed as a deterrent after thousands of people drowned at sea before the policy was introduced in 2013.

A decision on the fate of the first 70 people interviewed is expected to be reached within the next month, a different source who works with refugees said.

A spokesman for Australia’s immigration minister refused to comment on the resettlement process.

A U.S. State Department spokeswoman said that refugees from the Australian-run facilities will be subject to the same stringent vetting applied to all refugees who are being considered for entry to the United States.

“The United States remains deeply committed to safeguarding the American public, just as we are committed to providing refuge to some of the world’s most vulnerable people. These goals are not mutually exclusive,” she said.

The White House did not immediately respond to questions.

U.S. President Donald Trump’s plans for extreme vetting have extended to those traveling to the United States from Muslim countries.

Australia’s relationship with the new administration in Washington got off to a rocky start when Trump lambasted Australian Prime Minister Malcolm Turnbull over the resettlement arrangement, which Trump labeled a “dumb deal”.

Details of an acrimonious phone call between the pair soon after Trump took office made headlines around the world. Australia is one of Washington’s staunchest allies and has sent troops to fight alongside the U.S. military in conflicts in Iraq and Afghanistan.

The relocation of asylum seekers to the United States is designed to help Papua New Guinea and Australia proceed with the planned closure of the Manus detention center on Oct. 31.

But the fate of approximately 200 men deemed non-refugees is uncertain.

Those not offered resettlement in the United States will be offered the chance to settle in Papua New Guinea or return home.

Australia has already offered detainees up to $25,000 to voluntarily return home; an offer very few have taken up.

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.

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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.

 

 

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.