Editing Citgo (section)

===Venezuelan ownership===
{{see also|Citgo Six}}
[[File:Day Park City Chicago.jpg|thumb|left|A CITGO station in Chicago with the new street image]]
Fifty percent of Citgo was sold to [[Petróleos de Venezuela, S.A.]] (PDVSA) in 1986, which acquired the remainder in 1990, resulting in the current ownership structure.<ref>{{cite web |url=https://www.citgo.com/about/who-we-are/our-story |title=Our Story |website=Citgo |access-date=30 January 2019 |archive-date=17 May 2019 |archive-url=https://web.archive.org/web/20190517093231/http://www.citgo.com/about/who-we-are/our-story |url-status=dead }}</ref><ref>{{cite news |title=Southland to Sell 50% of Citgo Unit to Venezuela |url=https://www.latimes.com/archives/la-xpm-1986-02-06-fi-4954-story.html |access-date=16 October 2024 |work=Los Angeles Times |date=6 February 1986}}</ref><ref>{{cite news |last1=Weeks |first1=Sally |title=Venezuela to finalize purchase of 50 percent of Citgo - UPI Archives |url=https://www.upi.com/Archives/1986/09/10/Venezuela-to-finalize-purchase-of-50-percent-of-Citgo/3133526708800/ |access-date=16 October 2024 |work=UPI |date=10 September 1986 |language=en}}</ref><ref>{{cite news |last1=Krishnan |first1=Harihar |title=Southland completes sale of remaining interest in Citgo - UPI Archives |url=https://www.upi.com/Archives/1990/01/31/Southland-completes-sale-of-remaining-interest-in-Citgo/8254633762000/ |access-date=16 October 2024 |work=UPI |date=31 January 1990 |language=en}}</ref> In September 2010, in connection with the centennial of its original owner, Cities Service Company, Citgo unveiled a new retail design.<ref>{{cite news |last=Seba |first=Erwin |title=CITGO Launches New Retail Design |url=https://www.cspdailynews.com/fuels/citgo-launches-new-retail-design |access-date=19 January 2020 |work=Convenience Store Products Daily News |publisher=[[Winsight Media]] |date=1 September 2010}}</ref> Within five years, Citgo planned for all locations to display the new street image.<ref>{{cite news| last=Lisanti| first=Linda| title=A Centennial Celebration| work=Convenience Store News| access-date=2012-04-30| date=November 1, 2010| url=http://www.csnews.com/article-a_centennial_celebration-1302.html| url-status=dead| archive-url=https://web.archive.org/web/20101219092240/http://www.csnews.com/article-a_centennial_celebration-1302.html| archive-date=2010-12-19}}</ref> With full ownership of Citgo, PDVSA at its peak controlled 10% of the US domestic oil market, creating a lucrative export chain from Venezuelan oil to American consumers,{{citation needed|date=November 2020}} as the two largest buyers of Venezuelan petroleum are the United States and [[China]], respectively.<ref name=":8">{{Cite book|last=Kline|first=Harvey F.|editor1-first=Harvey F|editor1-last=Kline|editor2-first=Christine J|editor2-last=Wade|editor3-first=Howard J|editor3-last=Wiarda|date=2018-04-24|title=Latin American Politics and Development|doi=10.4324/9780429495045|isbn=9780429495045|url=http://digitool.hbz-nrw.de:1801/webclient/DeliveryManager?pid=3990488&custom_att_2=simple_viewer}}{{Dead link|date=August 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

In October 2010, then [[President of Venezuela]], [[Hugo Chávez]], announced the intention to have PDVSA sell its Citgo subsidiary calling it a "bad business" and citing low profits since 2006. The minimum sale price was set at 10 billion US dollars; however, PDVSA has been unable to find a buyer at that price.<ref>{{cite news| last1=Pretel| first1=Enrique| last2=Andres| first2=Frank| first3=Jack| last3=Daniel| title=Chavez calls Venezuela-owned Citgo bad business| website=Reuters| access-date=2011-04-11| date=October 26, 2010| url=https://www.reuters.com/article/venezuela-citgo-idUSN255577720101026}}</ref><ref>{{cite news| last=Tovar| first=Ernesto J| title=Citgo was impacted by sale of assets and financial aid to PDVSA| newspaper=[[El Universal (Caracas)|El Universal]]| location=Caracas| access-date=2011-04-11| date=October 27, 2010| url=http://www.eluniversal.com/2010/10/27/en_eco_esp_citgo-was-impacted-b_27A4659411.shtml| archive-url=https://web.archive.org/web/20121002134432/http://www.eluniversal.com/2010/10/27/en_eco_esp_citgo-was-impacted-b_27A4659411.shtml| archive-date=2012-10-02| url-status=dead}}</ref><ref>{{cite news| last1=Crooks| first1=Nathan| first2=Corina| last2=Rodriguez Pons| title=PDVSA Facing Tough Sale of Citgo, Minister Says| magazine=[[Bloomberg Businessweek]]| access-date=2011-04-11| date=October 27, 2010| url=https://www.bloomberg.com/news/2010-10-27/pdvsa-facing-tough-sale-of-u-s-refining-unit-citgo-energy-minister-says.html}}</ref>  It was confirmed in January 2015 that Citgo would not be sold, but rather bonds were sold by Citgo to give a dividend to PDVSA.<ref>{{cite news| last1=Dezember| first1=Ryan |last2=Sider| first2=Alison| title=Plug Pulled on Venezuela's Sale of Citgo| newspaper=[[The Wall Street Journal]]| access-date=2015-03-17| date=January 20, 2015| url=https://www.wsj.com/articles/citgo-auction-called-off-venezuela-owned-refiner-plans-debt-sale-1421798363|url-access=subscription }}</ref> The Bonds sold included a $1.5bn five-year bond and a $1.3bn term loan to be fully repaid in three and a half years.<ref>{{cite news| title=PdV pledges 100pc of Citgo in debt transaction| website=[[Argus Media]]| access-date=2015-03-17| date=February 11, 2015| url=http://www.argusmedia.com/pages/NewsBody.aspx?id=991537}}</ref><ref>{{cite news| title=Venezuela's Citgo and the revolution's Praying Mantis School of Business| newspaper=[[Financial Times]]| date=January 29, 2015| access-date=2015-03-17| url=https://www.ft.com/content/620949cd-c11b-3e0f-8f9e-9618f3ee9256 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/620949cd-c11b-3e0f-8f9e-9618f3ee9256 |archive-date=2022-12-10|url-access=subscription }}</ref>

In a 2016 deal, Venezuela pledged 49.9% of Citgo to Russian oil firm [[Rosneft]] as collateral for a $1.5 billion loan.<ref>{{cite web |title=Exclusive: U.S. investors seek to acquire Russia's Rosneft lien in Citgo |website=[[Reuters]] |archive-url=https://web.archive.org/web/20230701141232/https://www.reuters.com/article/us-usa-oil-citgo-exclusive/exclusive-u-s-investors-seek-to-acquire-russias-rosneft-lien-in-citgo-idUSKCN1GA2J4 |archive-date=2023-07-01 |url-status=live |url=https://www.reuters.com/article/us-usa-oil-citgo-exclusive/exclusive-u-s-investors-seek-to-acquire-russias-rosneft-lien-in-citgo-idUSKCN1GA2J4 |last1=Ulmer |first1=Alexandra }}</ref> Both Republicans and Democrats in the United States urged oversight on this deal, describing Citgo's sale to Russia as a risk to the national security of the United States.<ref name="NEWSoct17"/>

In November 2017, six executives working for Citgo, including five American citizens, were arrested while attending a meeting at the headquarters of PDVSA in Caracas, and as of June 2020 remained imprisoned without consular access and without a trial.<ref>{{cite news |last1=Holland |first1=Steve |title=Detained Venezuelan-U.S. Citgo executives to be tried as 'traitors': Maduro |url=https://www.reuters.com/article/us-venezuela-oil-usa/detained-venezuelan-u-s-citgo-executives-to-be-tried-as-traitors-maduro-idUSKBN1DM2OE |access-date=12 January 2019 |publisher=Reuters |date=November 22, 2017}}</ref><ref>{{cite news |last1=Regan |first1=Trish |title=Trish Regan reveals the names of US hostages being held captive in Venezuela |url=https://video.foxbusiness.com/v/5988581578001/#sp=show-clips |access-date=13 January 2019 |website=[[Fox News]] |date=January 11, 2019}}</ref><ref>{{cite news |last1=Smith |first1=Scott |title=Video shows the Citgo 6 imprisoned in Venezuela as families implore government for release amid pandemic |url=https://www.click2houston.com/news/world/2020/06/18/video-shows-6-american-oil-executives-jailed-in-venezuela/ |access-date=13 August 2020 |work=Click2Houston |issue=18 June 2020}}</ref> Although granted house arrest in Venezuela in December 2019, the six men were transferred to harsher conditions in [[El Helicoide]] prison following U.S. President Donald Trump's hosting of opposition leader Juan Guaido at the [[2020 State of the Union Address]].<ref>{{cite news |last1=Wilkinson |first1=Tracy |title=Venezuela moves U.S. oil execs to a harsher jail after Trump hosts opposition leader |url=https://www.latimes.com/politics/story/2020-02-12/venezuela-moves-jailed-u-s-oil-execs-to-harsher-facility-after-trump-welcomes-opposition-leader |access-date=13 August 2020 |newspaper=LA Times |date=12 February 2020}}</ref><ref name="TLN1">{{cite news |last1=Zuvanich |first1=Adam |title=Fears of 'Citgo 6' families amplified by pandemic |url=https://theleadernews.com/fears-of-citgo-6-families-amplified-by-pandemic/ |access-date=13 August 2020 |work=The Leader News |date=27 March 2020}}</ref> 

Amid the COVID-19 pandemic, U.S. Secretary of State Mike Pompeo called for their release on humanitarian grounds, stating that they were "wrongfully detained" and that they had been incarcerated without evidence presented against them for over two years.<ref>{{cite news |last1=Hansler |first1=Jennifer |title=Pompeo calls for the release of Americans held in Venezuela amid coronavirus outbreak |url=https://www.cnn.com/2020/03/20/politics/citgo-6-coronavirus/index.html |access-date=13 August 2020 |work=CNN |date=20 March 2020}}</ref> On March 9, 2022, one of the Citgo 6 was released following a visit by US officials, including US Ambassador to Venezuela [[James B. Story]], to Venezuela, where they met with Venezuelan President [[Nicolás Maduro]].<ref>{{cite news |last1=Pozzebon |first1=Steffano |title=Two Americans, including one member of the 'CITGO6,' released from prison in Venezuela |url=https://www.cnn.com/2022/03/08/americas/citgo-6-prison-release-venezuela-intl-latam/index.html |access-date=2 October 2022 |work=CNN |date=9 March 2022}}</ref> Later that year, on October 1, the remaining five members of the Citgo 6 were released following a [[prisoner exchange]].<ref>{{cite news |last1=Shear |first1=Michael D. |last2=Fassihi |first2=Farnaz |title=American Prisoners Are Released From Venezuela and Iran |url=https://www.nytimes.com/2022/10/01/us/venezuela-iran-prisoner-swap.html |access-date=2 October 2022 |work=New York Times |date=1 October 2022}}</ref> 

Other Venezuelan oil executives were arrested in what [[Bloomberg News]] described as a "purge" designed to bolster more economic power behind the President of Venezuela, Nicolás Maduro.<ref>{{cite news| title=Citgo Arrests Tighten Maduro's Grip on Venezuela's Oil Economy| url=https://www.bloomberg.com/news/articles/2017-11-22/citgo-arrests-tighten-maduro-s-grip-on-venezuela-s-oil-economy| access-date=23 November 2017| website=[[Bloomberg News]]| date=November 22, 2017| last=Rosati| first=Andrew}}</ref> [[Asdrúbal Chávez]], cousin of late Venezuelan president Hugo Chávez, was chosen as president of Citgo in November 2017.<ref>{{cite news| title=Venezuela taps Chavez cousin as new Citgo president after arrests| url=https://www.reuters.com/article/us-venezuela-oil-citgo/venezuela-taps-chavez-cousin-as-new-citgo-president-after-arrests-idUSKBN1DM2XS| access-date=23 November 2017| website=Reuters| date=November 22, 2017}}</ref>

Citgo also has a much earlier connection to Venezuela, dating to the turn of the 20th century. Predecessor Warner-Quinley Asphalt's principal business was competition to the "Asphalt Trust" by means of a bitumen resources concession it held in Venezuela.<ref name=":0" />

====Crisis in Venezuela====
{{further|Crisis in Venezuela (2012–present)}}
Following the death of [[Hugo Chávez]] in 2013, his successor [[Nicolás Maduro]] presided in office through an era of economic depression caused by decreasing oil prices and sanctions.<ref>{{cite press release| url=https://www.moodys.com/research/Moodys-Political-risk-poses-major-challenges-to-credit-in-Latin--PR_371832| title=Moody's: Political risk poses major challenges to credit in Latin America| date=August 29, 2017| publisher=[[Moody's Investors Service]]| access-date=2017-08-30|archive-url=https://web.archive.org/web/20170830060201/https://www.moodys.com/research/Moodys-Political-risk-poses-major-challenges-to-credit-in-Latin--PR_371832| archive-date=2017-08-30| url-status=dead}}</ref><ref name=FPmarch2013>{{cite news| last1=Corrales| first1=Javier| title=The House That Chavez Built| url=https://foreignpolicy.com/2013/03/07/the-house-that-chavez-built/| access-date=6 February 2015| newspaper=[[Foreign Policy]]| date=March 7, 2013}}</ref><ref name=WHARTON>{{cite web |title=Post-Chavez, Venezuela Enters a Downward Spiral |url=http://knowledge.wharton.upenn.edu/article/post-chavez-venezuela-enters-downward-spiral/ |website=[[Wharton School of the University of Pennsylvania]] |access-date=21 February 2015}}</ref>  The destabilized economy resulted in [[hyperinflation]], an [[economic depression]], [[shortages in Venezuela]] and drastic increases in poverty, disease, child mortality, malnutrition, and crime.<ref name="ELPAISfeb2015">{{cite news |last1=Scharfenberg |first1=Ewald |title=Volver a ser pobre en Venezuela |trans-title=Becoming poor again in Venezuela |url=http://internacional.elpais.com/internacional/2015/01/30/actualidad/1422646346_475356.html |access-date=3 February 2015 |newspaper=[[El País]] |location=Madrid |date=February 1, 2015}}</ref><ref name="NYThyperinflation">{{cite news |last1=Herrero |first1=Ana Vanessa |last2=Malkin |first2=Elisabeth |title=Venezuela Issues New Bank Notes Because of Hyperinflation |url=https://www.nytimes.com/2017/01/16/world/americas/nuevos-billetes-venezuela-new-banknotes.html?_r=0 |access-date=17 January 2017 |newspaper=[[The New York Times]] |date=January 16, 2017 |url-access=subscription }}</ref><ref name=poverty80>{{cite news| title=Chamber of Commerce: 80% of Venezuelans are in poverty| url=http://www.eluniversal.com/noticias/daily-news/chamber-commerce-venezuelans-are-poverty_247647| access-date=4 April 2016| newspaper=El Universal| date=April 1, 2016| archive-url=https://web.archive.org/web/20160404181203/http://www.eluniversal.com/noticias/daily-news/chamber-commerce-venezuelans-are-poverty_247647| archive-date=2016-04-04| url-status=dead}}</ref><ref name="VENdepression">{{plainlist|{{bullet}}{{cite news| last1=Gillespie| first1=Patrick| title=Venezuela shuts border with Colombia as cash crisis escalates| url=https://money.cnn.com/2016/12/12/news/economy/venezuela-shuts-colombia-border-cash-crisis/| access-date=17 January 2017| work=[[CNNMoney]]| date=December 12, 2016}}
{{bullet}}{{cite news| last1=Gillespie| first1=Patrick| title=Venezuela: the land of 500% inflation| url=https://money.cnn.com/2016/04/12/news/economy/venezuela-imf-economy/| access-date=17 January 2017| work=CNNMoney| date=April 12, 2016}}<br />{{bullet}}{{cite news| last1=Rosati| first1=Andrew| title=Venezuela's Economy Was the Worst Performing of 2016, IMF Estimates| url=https://www.bloomberg.com/news/articles/2017-01-11/goodbye-recession-hello-depression-venezuela-gdp-takes-10-hit| access-date=17 January 2017| work=Bloomberg News| date=January 11, 2017}}}}</ref> As a result of the crisis, Venezuela's debt to [[China]] and [[Russia]] – two political allies – increased.<ref name="NEWSoct17">{{cite news| last1=Valencia| first1=Robert| title=Don't Worry About War with North Korea — Venezuela Is the Real Problem| url=https://uk.news.yahoo.com/don-t-worry-war-north-205256520.html| access-date=15 October 2017| magazine=[[Newsweek]]| date=October 14, 2017| quote=In the event that Venezuela is unable to pay off its debt to Russia, the Maduro administration is using CITGO as its guarantee. In April 2017, it was unclear how Venezuela's state-oil company PDVSA—CITGO's parent company—would pay Russian loans. As a result, Russia's state-oil company Rosneft could potentially own CITGO, which is based in Houston. Democrat and Republican legislators sent letters to Trump, members of Congress and senators alerting that this could pose a danger to U.S. national security should Russia acquire the company}}</ref> Due to the financial burden of this debt, Venezuela offered Citgo as collateral for Russian debt in 2016, raising the possibility that the Russian government could own Citgo due to [[Default (finance)|Venezuela's high risk of default]].<ref name="NEWSoct17"/>

In July 2018, Citgo president [[Asdrúbal Chávez]] had his work and tourist visas revoked by the United States and was ordered to leave the country within thirty days.<ref>{{cite news| url=https://www.lapatilla.com/2018/07/18/extraoficial-autoridades-de-estados-unidos-anularon-la-visa-de-asdrubal-chavez/| title=Extraoficial: Autoridades de Estados Unidos anularon la visa de Asdrúbal Chávez| first=César| last=Batiz| date=July 18, 2018| newspaper=[[La Patilla]]| access-date=2018-07-18| language=es-ES| trans-title=Unofficial: US authorities annulled Asdrúbal Chávez's visa}}</ref>

====2019 U.S. sanctions====
On January 28, 2019, the [[Federal government of the United States|U.S. Government]] imposed sanctions on PDVSA, freezing its assets in the U.S., and barring any U.S. firms and citizens from doing business with it.<ref>{{cite press release|date=January 28, 2019|title=Treasury Sanctions Venezuela's State-Owned Oil Company Petroleos de Venezuela, S.A.|url=https://home.treasury.gov/news/press-releases/sm594|publisher=[[United States Department of the Treasury|U.S. Treasury]]|access-date=June 7, 2019}}</ref><ref>{{cite news|date=January 29, 2019|title=US Sanctions Venezuela's State-owned Oil Company|url=https://www.voanews.com/a/us-imposes-sanctions-on-venezuelan-state-oil-firm-pdvsa/4762484.html|website=[[Voice of America|VoA News]]|access-date=June 7, 2019}}</ref><ref>{{cite news|last=DiChristopher|first=Tom|date=January 29, 2019|title=Treasury sanctions Venezuela state-owned oil firm in bid to transfer control to Maduro opposition|url=https://www.cnbc.com/2019/01/28/treasury-set-to-sanction-venezuela-state-owned-oil-firm-sen-rubio.html|website=[[CNBC]]|access-date=June 7, 2019}}</ref> In February, Citgo cut ties with the PdVSA, and halted payments to them, placing them in a "blocked account". However, the sanctions limited Citgo's ability to refinance debt. In March, at the behest of the [[United States Department of the Treasury|U.S. Treasury]], 35 financial institutions secured a $1.2 billion loan to fund Citgo's daily operations and refinancing, allaying concerns about Citgo's ability to continue operating in the U.S.<ref name=TiesCutFormally2019/><ref>{{cite news|last1=Ahmann|first1=Tim|last2=McWilliams|first2=Gary|title=U.S. acts to keep Citgo operating in face of Venezuela sanctions|url=https://www.reuters.com/article/us-venezuela-politics-citgo/u-s-acts-to-keep-citgo-operating-in-face-of-venezuela-sanctions-idUSKCN1QV308|website=Reuters|access-date=June 7, 2019}}</ref><ref>{{cite news|date=March 29, 2019|title=An Embattled CITGO Secures Long-Term Financing|url=https://csnews.com/embattled-citgo-secures-long-term-financing|magazine=Convenience Store News|access-date=June 7, 2019}}</ref><ref>{{cite news|last=Luck|first=Marissa|title=Citgo gets $1.2B loan amid concerns over Venezuela sanctions|url=https://www.houstonchronicle.com/business/energy/article/Citgo-gets-1-2B-loan-amid-concerns-over-13726273.php|newspaper=[[Houston Chronicle]]|access-date=June 7, 2019}}</ref>

On June 6, 2019, the U.S. Treasury expanded the sanctions, clarifying that exports of [[diluent]]s to Venezuela could be subject to sanctions.<ref>{{cite news|last=Rampton|first=Roberta|date=June 6, 2019|title=U.S. tightens Venezuela oil sanctions, indicates more actions to come|url=https://www.reuters.com/article/us-venezuela-politics-usa/u-s-tightens-venezuela-oil-sanctions-indicates-more-actions-to-come-idUSKCN1T731E|website=Reuters|access-date=June 7, 2019}}</ref>

====2020 bond====
In 2020, Citgo borrowed money in the form of a bond, and used 50.1% of the company's equity as collateral. If the bond is not repaid, the institutional investors that lent the money will obtain ownership of the 50.1%.<ref>{{Cite news|url=https://www.reuters.com/article/us-usa-oil-citgo-exclusive/exclusive-u-s-investors-seek-to-acquire-russias-rosneft-lien-in-citgo-idUSKCN1GA2J4|title = Exclusive: U.S. Investors seek to acquire Russia's Rosneft lien in Citgo|newspaper = Reuters|date = 27 February 2018|last1 = Ulmer|first1 = Alexandra}}</ref>

====Possible bankruptcy====
In May 2024, Bloomberg reported that opposition-appointed executives of Petroleos de Venezuela were considering placing Citgo into [[Chapter 11 bankruptcy]] protection to slow down or completely block the sale of oil assets under the company's control. The opposition's plan would help it retain control of its most important overseas asset, which is up for auction.<ref>{{Cite web|url= https://www.bloomberg.com/news/articles/2024-05-22/citgo-s-venezuelan-parent-said-to-weigh-bankruptcy-to-slow-sale|title=Citgo's Venezuelan parent said to weigh bankruptcy to slow down sale|date=May 22, 2024|access-date=May 30, 2024|website=Bloomberg|language=en}}</ref>

====Legal action against Citgo====
On May 30, 2024, two former Citgo executives who were imprisoned by the Venezuelan government, sued Citgo for over $400 million, claiming that their imprisonment was a conspiracy and was wrongful, refused to keep them protected from harm, and increased emotional distress on both of them.<ref>{{Cite web|url= https://www.houstonpublicmedia.org/articles/court/2024/05/30/489180/houston-area-brothers-sue-citgo-for-400-million-over-imprisonment-in-venezuela/|title= Houston-area brothers sue Citgo for $400 million over imprisonment in Venezuela|last=Zuvanich|first=Adam|date=May 30, 2024|access-date=May 30, 2024|website=Houston Public Media|language=en}}</ref>