Citgo Ruling Raises Concerns Over State-Owned Companies and Opposition Oversight
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A January 2023 court ruling found Citgo, a Venezuelan state-owned oil company subsidiary in the US, liable for Venezuela's debts, despite not being controlled by Venezuela for years. This may impact state-owned enterprises worldwide.
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The ruling exposed that the Venezuelan opposition, which was given control of Citgo by the US to weaken Maduro, misappropriated Citgo's funds for personal gain, shattering the perception of them as the "good guys".
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The court ruling removed Citgo's liability protections, raising concerning questions for countries that use state-owned companies to further political agendas.
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The Citgo scandal serves as a lesson for the US on the risks of blindly backing opposition groups without oversight, as aligning with the "anti-regime" does not guarantee positive outcomes.
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While pragmatic to ease oil prices and migration issues, Biden's engagement with Maduro risks legitimizing his defiance of democratic principles. Supporting initiatives that encourage transparency and accountability is key.