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Citgo in danger of being taken over by Russia

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Citgo, a U.S. oil company based in Houston, Texas, may be one step away from being taken over by Russian state-run oil company Rosneft.
Citgo is owned by Venezuela’s state-run oil company, Petroleos de Venezuela, which has put 49.9 percent of the company up as collateral for a loan from Rosneft. However, the Venezuelan company is cash-strapped and is having difficulty meeting its financial obligations. If it defaults on its loan to Rosneft, which analysts say could happen by the end of this year, Rosneft would gain control of Citgo and then could buy out the difference in shares to gain a majority ownership of the company.
Although not in immediate danger, this possible scenario has Congress worried, with both Democrats and Republicans scrambling to take action.
Russia has a history of playing politics with its natural resources, having cut off gas supplies to Ukraine several times when it was unhappy with its policies. However, experts say even if Russia does gain control of Citgo, it's unlikely it will be able to affect U.S. oil prices significantly.

Read more from CNNMoney.


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