Russian oil company ceases Venezuela operations

Russia's state-controlled Rosneft oil company on Saturday said it was ceasing operations and selling its assets in Venezuela. Rosneft said in a statement it had decided to sell its business in Venezuela to a company that is 100% owned by the Russian government.

The move comes after long-running US efforts to press Russia into halting its oil operations in Venezuela, which have provided a lifeline to the government of Venezuelan President Nicolas Maduro, who is backed by Moscow.

Rosneft is led by Russian President Vladimir Putin's longtime associate Igor Sechin, with some observers saying the move is an attempt by Russia to protect the oil giant from new rounds of US sanctions while maintaining its staunch support for Maduro.

The sale could help shield Rosneft, Russia's largest oil producer, by handing over control over the Venezuelan operations to a fully-owned subsidiary of the Russian state, which isn't answerable to private investors the way Rosneft is.

The Rosneft subsidiary that sells crude to European customers was recently hit by the US sanctions, and US authorities have vowed to keep pressure to force it to halt Venezuelan operations.