{"id":6067,"date":"2022-03-10T19:36:00","date_gmt":"2022-03-11T00:36:00","guid":{"rendered":"https:\/\/www.inflation.us\/news\/?p=6067"},"modified":"2026-01-03T17:05:28","modified_gmt":"2026-01-03T22:05:28","slug":"something-is-going-on-with-venezuela","status":"publish","type":"post","link":"https:\/\/www.inflation.us\/news\/articles\/something-is-going-on-with-venezuela\/","title":{"rendered":"Something is Going On With Venezuela"},"content":{"rendered":"\n

Something is going on between the U.S.<\/strong> and Venezuela<\/strong> and it could be big for Rusoro Mining (TSXV: RML)<\/strong>.<\/span><\/span><\/p>\n\n

Here are the facts <\/span>about <\/strong>Rusoro Mining (TSXV: RML):<\/strong><\/span><\/span><\/span><\/p>\n\n

On August 17, 2011, after gold<\/strong><\/span> hit a new all-time nominal high<\/strong><\/span>, Venezuelan President Hugo Chavez<\/strong> announced that he was nationalizing<\/strong><\/span> the gold industry <\/strong><\/span>to boost<\/strong><\/span> the country’s gold reserves<\/strong><\/span>. Venezuela stole<\/span><\/strong> RML’s<\/strong> gold mine<\/strong><\/span> similar to how America<\/strong> is stealing<\/strong><\/span> the yachts<\/strong> of Russians<\/strong>.<\/span><\/span><\/span><\/p>\n\n

In March 2013, RML<\/strong> filed<\/strong><\/span> a Statement of Claim<\/strong> in arbitration against<\/span> Venezuela<\/strong>, in accordance with the provisions of the Canada-Venezuela Bilateral Investment Treaty<\/strong>. RML<\/strong> was seeking fair-value compensation of US$3.03 billion<\/strong><\/span> for all its losses<\/strong><\/span> caused by the nationalization<\/strong><\/span> of its Venezuelan gold mine<\/span><\/strong>.<\/span><\/span><\/span><\/p>\n\n

On August 22, 2016, the Arbitral Tribunal<\/strong> operating under the ICSID Additional Facility Rules<\/strong>, awarded<\/strong><\/span> RML<\/strong> compensation of US$967.77 million<\/strong><\/span> plus pre and post award interest. As of September 30, 2021, the award with interest is worth in excess of US$1.62 billion<\/strong><\/span>.<\/span><\/span><\/span><\/p>\n\n

On October 10, 2016, RML<\/strong> filed a petition<\/strong><\/span> with the U.S. District Court<\/strong> in Washington DC to confirm the final award<\/strong><\/span> against<\/span> Venezuela<\/strong>.<\/span><\/span><\/span><\/p>\n\n

On March 1, 2018, the U.S. District Court<\/strong> in Washington DC ruled<\/strong><\/span> in RML’s favor<\/span><\/strong>, rejecting all of Venezuela’s defenses and holding that the award<\/strong> was valid<\/strong><\/span> and enforceable<\/strong><\/span> in the United States<\/strong>. The U.S. District Court<\/strong> in Washington DC entered<\/span> judgment<\/strong> for the full<\/span> amount<\/strong> of the award<\/strong>, plus interest.<\/span><\/span><\/span><\/p>\n\n

In October 2018, RML<\/strong> announced the signing<\/strong><\/span> of a settlement agreement<\/strong> in which Venezuela agreed to pay<\/span> RML<\/strong> over US$1.28 billion<\/strong><\/span> in monthly installments<\/strong> through 2024 in exchange for the full release<\/strong><\/span> of the arbitral award<\/strong> and to acquire<\/span> RML’s mining data<\/strong>.<\/span><\/span><\/span><\/p>\n\n

In December 2018, an initial payment was sent<\/strong><\/span> by Venezuela<\/strong> and received<\/strong><\/span> by a Canadian bank<\/strong> representing RML<\/strong>. The bank refused<\/span><\/strong> to advance the funds<\/strong><\/span> to RML<\/strong> due to concerns<\/strong><\/span> about U.S. sanctions<\/span><\/strong> against Venezuela.<\/span><\/span><\/span><\/p>\n\n

In January 2019, the Paris Court of Appeals annulled<\/span><\/strong> part of the damages<\/span> portion<\/strong> of the arbitral award<\/strong>.<\/span><\/span><\/span><\/p>\n\n

In March 2021, the French Supreme Court overturned<\/span><\/strong> the Paris Court of Appeals Decision<\/strong>, therefore reinstating the award in full<\/strong><\/span>.<\/span><\/span><\/span><\/p>\n\n

On September 22, 2021, Venezuela voluntarily<\/span> dismissed<\/span><\/strong> its appeal<\/strong> of the US$1.62 billion<\/span> award judgment<\/strong> rendered by the U.S. District Court<\/strong> in Washington DC in favor<\/strong><\/span> of RML<\/strong>.<\/span><\/span><\/span><\/p>\n\n

On October 6, 2021, RML announced<\/span><\/strong> that it was granted an additional<\/span> default judgment<\/strong> in the Supreme Court of the State of New York<\/strong> for US$100 million<\/strong><\/span> for breach<\/strong><\/span> of the Settlement Agreement<\/strong> dated October 5, 2018.<\/span><\/span><\/span><\/p>\n\n

On March 4, 2022, Judge Leonard Stark<\/strong> of the US District Court<\/strong> in Delaware<\/strong> ruled that plans for an eventual sale<\/strong><\/span> of shares in US-based refiner Citgo<\/strong><\/span> to pay off debts<\/strong><\/span> incurred by Venezuela<\/strong> can proceed<\/strong><\/span> despite sanctions<\/strong><\/span>, as long as it is approved<\/strong><\/span> by the U.S. executive branch<\/strong>. This sale would allow RML<\/strong> to collect the money<\/strong><\/span> it is owed but we have no <\/strong><\/span>idea<\/strong><\/span> if the U.S. executive branch<\/strong> will approve<\/strong><\/span> of it.<\/span><\/span><\/span><\/p>\n\n

The very next<\/span> day<\/strong> on March 5, 2022, U.S. executive branch <\/strong>officials traveled<\/strong><\/span> to Caracas, Venezuela for secret<\/span> meetings <\/strong>with the Venezuelan government<\/strong>.<\/span><\/span><\/span><\/p>\n\n

Last night it was announced that Venezuela released<\/span> two American Citgo<\/span> executives Gustavo Cárdenas <\/strong>and Jorge Fernández<\/strong>.<\/span><\/span><\/span><\/p>\n\n

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.<\/em><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Something is going on between the U.S. and Venezuela and it could be big for Rusoro Mining (TSXV: RML). Here are the facts about Rusoro Mining (TSXV: RML): On August 17, 2011, after gold hit a new all-time nominal high, Venezuelan President Hugo Chavez announced that he was nationalizing the gold industry to boost the […]<\/p>\n","protected":false},"author":1,"featured_media":6068,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[26,116],"class_list":["post-6067","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-politics","tag-rml"],"_links":{"self":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/6067","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/comments?post=6067"}],"version-history":[{"count":1,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/6067\/revisions"}],"predecessor-version":[{"id":6069,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/6067\/revisions\/6069"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media\/6068"}],"wp:attachment":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media?parent=6067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/categories?post=6067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/tags?post=6067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}