{"identifier":"/us/usc/t22/s9752","title":22,"num":"\u00a7\u202f9752.","heading":"Concerns over PDVSA transactions with Rosneft","text":"\u00a7\u202f9752.\nConcerns over PDVSA transactions with Rosneft\n(a)\nFindings\nCongress makes the following findings:\n(1) In late 2016, Venezuelan state-owned oil company Petro\u0301leos de Venezuela, S.A. (referred to in this section as \u201cPDVSA\u201d), through a no compete transaction, secured a loan from Russian government-controlled oil company Rosneft, using 49.9 percent of PDVSA\u2019s American subsidiary, CITGO Petroleum Corporation, including its assets in the United States, as collateral. As a result of this transaction, 100 percent of CITGO is held as collateral by PDVSA\u2019s creditors.\n(2) CITGO, a wholly owned subsidiary of PDVSA, is engaged in interstate commerce and owns and controls critical energy infrastructure in 19 States of the United States, including an extensive network of pipelines, 48 terminals, and 3 refineries, with a combined oil refining capacity of 749,000 barrels per day. CITGO\u2019s refinery in Lake Charles, Louisiana, is the sixth largest refinery in the United States.\n(3) The Department of the Treasury imposed sanctions on Rosneft, which is controlled by the Government of the Russian Federation, and its Executive Chairman, Igor Sechin, following Russia\u2019s military invasion of Ukraine and its illegal annexation of Crimea in 2014.\n(4) The Department of Homeland Security has designated the energy sector as critical to United States infrastructure.\n(5) The growing economic crisis in Venezuela raises the probability that the Maduro regime and PDVSA will default on their international debt obligations, resulting in a scenario in which Rosneft could come into control of CITGO\u2019s United States energy infrastructure holdings.\n(b)\nSense of Congress\nIt is the sense of Congress that\u2014\n(1) control of critical United States energy infrastructure by Rosneft, a Russian government-controlled entity currently under United States sanctions that is led by Igor Sechin, who is also under United States sanctions and is a close associate of Vladimir Putin, would pose a significant risk to United States national security and energy security; and\n(2) a default by PDVSA on its loan from Rosneft, resulting in Rosneft coming into possession of PDVSA\u2019s United States CITGO assets, would warrant careful consideration by the Committee on Foreign Investment in the United States.\n(c)\nPreventing Rosneft from controlling United States energy infrastructure\nThe President shall take all necessary steps to prevent Rosneft from gaining control of critical United States energy infrastructure.\n(d)\nSecurity risk report\nNot later than 90 days after\n(1) the Committee on Foreign Relations of the Senate;\n(2) the Committee on Homeland Security and Governmental Affairs of the Senate;\n(3) the Committee on Banking, Housing, and Urban Affairs of the Senate;\n(4) the Committee on Foreign Affairs of the House of Representatives;\n(5) the Committee on Homeland Security of the House of Representatives; and\n(6) the Committee on Financial Services of the House of Representatives.","url":"https://projectusc.org/usc/t22/s9752.html","content":[{"t":"sec","id":"/us/usc/t22/s9752","children":[{"t":"num","text":"\u00a7\u202f9752."},{"t":"heading","text":"Concerns over PDVSA transactions with Rosneft"},{"t":"subsec","id":"/us/usc/t22/s9752/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Findings"},{"t":"chapeau","text":"Congress makes the following findings:"},{"t":"para","id":"/us/usc/t22/s9752/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" In late 2016, Venezuelan state-owned oil company Petro\u0301leos de Venezuela, S.A. (referred to in this section as \u201cPDVSA\u201d), through a no compete transaction, secured a loan from Russian government-controlled oil company Rosneft, using 49.9 percent of PDVSA\u2019s American subsidiary, CITGO Petroleum Corporation, including its assets in the United States, as collateral. As a result of this transaction, 100 percent of CITGO is held as collateral by PDVSA\u2019s creditors.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s9752/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" CITGO, a wholly owned subsidiary of PDVSA, is engaged in interstate commerce and owns and controls critical energy infrastructure in 19 States of the United States, including an extensive network of pipelines, 48 terminals, and 3 refineries, with a combined oil refining capacity of 749,000 barrels per day. CITGO\u2019s refinery in Lake Charles, Louisiana, is the sixth largest refinery in the United States.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s9752/a/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" The Department of the Treasury imposed sanctions on Rosneft, which is controlled by the Government of the Russian Federation, and its Executive Chairman, Igor Sechin, following Russia\u2019s military invasion of Ukraine and its illegal annexation of Crimea in 2014.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s9752/a/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" The Department of Homeland Security has designated the energy sector as critical to United States infrastructure.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s9752/a/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" The growing economic crisis in Venezuela raises the probability that the Maduro regime and PDVSA will default on their international debt obligations, resulting in a scenario in which Rosneft could come into control of CITGO\u2019s United States energy infrastructure holdings.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s9752/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Sense of Congress"},{"t":"chapeau","text":"It is the sense of Congress that\u2014"},{"t":"para","id":"/us/usc/t22/s9752/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" control of critical United States energy infrastructure by Rosneft, a Russian government-controlled entity currently under United States sanctions that is led by Igor Sechin, who is also under United States sanctions and is a close associate of Vladimir Putin, would pose a significant risk to United States national security and energy security; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s9752/b/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" a default by PDVSA on its loan from Rosneft, resulting in Rosneft coming into possession of PDVSA\u2019s United States CITGO assets, would warrant careful consideration by the Committee on Foreign Investment in the United States.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s9752/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Preventing Rosneft from controlling United States energy infrastructure"},{"t":"content","children":[{"t":"p","text":"The President shall take all necessary steps to prevent Rosneft from gaining control of critical United States energy infrastructure.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s9752/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Security risk report"},{"t":"chapeau","text":"Not later than 90 days after ","children":[{"t":"text","text":"December 20, 2019","tail":", the President shall submit a report assessing the national security risks posed by potential Russian acquisition and control of CITGO\u2019s United States energy infrastructure holdings to\u2014"}]},{"t":"para","id":"/us/usc/t22/s9752/d/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" the Committee on Foreign Relations of the Senate;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s9752/d/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" the Committee on Homeland Security and Governmental Affairs of the Senate;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s9752/d/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" the Committee on Banking, Housing, and Urban Affairs of the Senate;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s9752/d/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" the Committee on Foreign Affairs of the House of Representatives;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s9752/d/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" the Committee on Homeland Security of the House of Representatives; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s9752/d/6","children":[{"t":"num","text":"(6)"},{"t":"content","text":" the Committee on Financial Services of the House of Representatives.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"}]}]}