Rosneft’s Vankor Field oil and gas field in Russia. Credit: ROSNEFT.

Oil producer Rosneft is set to terminate its operations in Venezuela and sell the assets linked to its operations in the country to an undisclosed company owned by the Russian Government.

The move comes as the US Government increased the pressure on Venezuelan president Nicolas Maduro’s administration, including imposing sanctions on Rosneft Trading and TNK Trading International in Switzerland.

Rosneft finalised an agreement with the Russian Government-owned firm to sell all of its interest in its Venezuelan businesses. These include joint ventures (JVs) of Petromonagas, Petroperija, Boqueron, Petromiranda and Petrovictoria.

Also included in the sale are the oil-field services companies, commercial and trading operations.

Rosneft said in a press statement: “As a result of the concluded agreement, all assets and trading operations of Rosneft in Venezuela and/or connected with Venezuela will be disposed of, terminated or liquidated.

“The concluded transaction and the sale of assets will result in Rosneft receiving as a settlement payment a 9.6% share of Rosneft’s equity capital that will be held by a 100% subsidiary of Rosneft and accounted for as treasury stock.”

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Reuters quoted Rosneft spokesman Mikhail Leontiyev as saying that the decision to exit operations in Venezuela was intended to protect the company’s shareholders.

Mikhail Leontiyev added: “We defended the interests of our shareholders and did it in an effective way, and to whom the risks go is not an issue for us. The main thing is that the risks are leaving us.”

In January, Rosneft’s German subsidiary Rosneft Deutschland completed the acquisition of an additional 3.57% stake in Germany’s Bayernoil Raffineriegesellschaft from BP.

In November last year, Rosneft’s oil production complex Tyumenneftegaz started supplies of oil to the domestic Zapolyarye-Purpe pipeline system from Russkoye field.