The deepening of energy cooperation comes despite sweeping US sanctions against both countries and accusations that the US government is trying to remove President Nicolas Maduro from office in the name of an anti-drug campaign, Russia Today (RT) reported.
The extension, announced Thursday, will allow the joint venture to operate oil fields in western Venezuela to continue until 2041, with lawmakers estimating it will produce about 91 million barrels of oil and invest about $616 million over that period. The move follows a broader strategic partnership signed last month by Russian President Vladimir Putin and President Maduro.
Rosalvezhneft was established in 2020 after the U.S. sanctioned two subsidiaries of state oil company Rosneft for helping sell oil from Venezuela, and the company withdrew from the country. This new state-owned company soon acquired Rosneft’s Venezuelan assets, allowing Russia to maintain a presence in the sector.
Both countries have faced Western restrictions for years. Venezuela has been subject to sweeping US measures targeting PDVSA, its financial system and senior officials, while Russia has faced escalating Ukraine-related sanctions since 2014. Caracas also remains one of Moscow’s most vocal allies, regularly denouncing Western sanctions against Russia and expanding diplomatic and economic cooperation across multiple sectors.
The expansion of oil cooperation is also against the backdrop of increased pressure from the United States on Venezuela. In recent months, the Pentagon has controversially sent warships to the Caribbean to attack small vessels it says are involved in drug smuggling from Venezuela. The White House has maintained that Mr. Maduro is an illegitimate ruler with ties to cartels, raising speculation that direct military action may be imminent.
MNA