Trump administration stalls Citgo sale to Elliott Management amid Venezuela reset

September 27, 2026 at 12:11 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The Trump administration has extended Citgo Petroleum's protection from a court-ordered sale to Elliott Management six times since January, leaving the $9 billion deal in limbo. The delay reflects a shift in U.S. policy toward Venezuela's interim government, which opposes losing the Houston refiner. The sale was approved by a Delaware federal judge in November 2025 but still requires Treasury approval.

Key Facts

A Delaware federal judge ordered the sale of Citgo to Elliott Management and Amber Energy in November 2025, with $9 billion going to pay off a small number of Venezuela's creditors.
The Treasury Department has extended Citgo's protection from the sale six times since January 2026.
Energy Secretary Chris Wright called the forced sale to Elliott 'fantastic' in early 2026.
Richard Nephew, a sanctions expert at Columbia University, said there is an open question as to whether the Citgo sale is a requirement.
Jose Ignacio Hernandez, a Harvard law professor and former special counsel for Juan Guaidó, said any license authorizing the sale order will disrupt the three phases of U.S. policy toward Venezuela.

Court-Ordered Sale

In November 2025, a Delaware federal judge ordered the sale of Citgo Petroleum to Elliott Management and its affiliate Amber Energy. The court ruled that Citgo could be held liable for the Venezuelan government's debts and approved a sale that would send $9 billion to pay off a small number of Venezuela's numerous creditors. The sale would bring Citgo and its U.S. refineries under American ownership for the first time in nearly 40 years. The court-ordered sale was opposed by the Venezuelan government.

Administration Delay

The Treasury Department has extended Citgo's protection from the sale six times since January 2026. The extensions raise questions over whether the November court-ordered sale to one of Trump's wealthiest allies could be undone by geopolitics. A now U.S.-friendly interim Venezuelan government still does not want to give up its crown-jewel assets in Citgo. The Trump administration may be more amenable to that sentiment from Caracas.

Policy Shift

Keeping in place Citgo's protection from being sold avoids disrupting the ongoing cooperation between the U.S. and Venezuela, said Jose Ignacio Hernandez, a Harvard law professor and former special counsel for Venezuelan opposition leader Juan Guaidó. The Trump administration's public policy towards Venezuela is the three-step strategy espoused by Secretary of State Marco Rubio—stabilization, recovery and transition. Hernandez said any license authorizing the Citgo sale order will definitely disrupt these three phases. Richard Nephew, a sanctions expert at Columbia University's Center on Global Energy Policy, said there is an open question now as to whether or not the Citgo sale is a requirement.