How Trump could wrest Citgo from Elliott Management and hand it back to Venezuela
The fate of Citgo may be decided by whether the Trump administration opts to hand it to Elliott or Venezuela.
In early 2025, it appeared certain that Citgo Petroleum, a Houston oil refinery and a Venezuelan subsidiary, would be sold to U.S. activist hedge fund Elliott Management and its affiliate startup, Amber Energy. However, the Trump administration has yet to grant approval for the sale. The court-ordered sale, which would send $9 billion to pay off Venezuela's creditors, was seen as a win-win deal.
It would reduce Venezuela's debt pile while allowing a U.S. company to expand its refining capacity in the Gulf Coast. The Trump administration may be more amenable to Venezuela's claims on Citgo assets, potentially undoing the sale. The delay allows Venezuela to strengthen its efforts to save its cash cow from Elliott's ownership.
If the decision remains in limbo, the Trump administration can leverage Citgo as a bargaining chip in its dealings with Venezuela's interim government.
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