Wednesday, June 07, 2017

Russia cuts $1 billion from state budget on Venezuela concerns -document

Russia has slashed projected revenue by nearly $1 billion to reflect expectations that Venezuela may not make timely payments on bilateral loans, according to a document released by Russia's Audit Chamber on Tuesday.

The OPEC member over the years borrowed heavily from political allies including Russia and China, but is now struggling to pay back creditors including bondholders on Wall Street as its socialist economy collapses.

The issue is likely to draw attention in Washington, where lawmakers have questioned Venezuelan state oil firm PDVSA's [PDVSA.UL] use of a portion of its shares in U.S. subsidiary Citgo as collateral for a loan from Russia because this could leave Moscow with indirect control over U.S. energy infrastructure ....