A Russian oil company operating former Rosneft assets in Venezuela announced it will cease all operations by the end of December, marking a significant retreat of Moscow’s energy presence in the South American nation.
Petrolera (Cyprus) Limited notified employees this week that operations will end on December 23, citing international sanctions and financial restrictions on Russian state-controlled entities. The company operates through its parent organization Roszarubezhneft, which acquired the assets from Rosneft in 2020 after US sanctions targeted the Russian energy giant’s Venezuelan operations.
The withdrawal affects operations producing approximately 125,000 barrels of oil per day, representing roughly 16% of Venezuela’s current output. PCL employs around 200 workers, including Russian expatriates and local staff, across five joint ventures with Venezuela’s state oil company PDVSA.
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In a notification to workers, PCL legal representative Andrey Shavkun said that the company faces “structural incapacity” to maintain operations due to sanctions impact on the Russian energy sector. The document, shared publicly by Venezuelan journalist Roberto Deniz, outlined severance terms and confirmed December 23 as the final working day.
The announcement comes as tensions escalate between Venezuela and the United States. The Trump administration has deployed military assets to the Caribbean region and seized a Venezuelan oil tanker earlier this month, actions Caracas condemned as international piracy.
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Despite the operational withdrawal, Russia maintains diplomatic support for the Maduro government. Russian President Vladimir Putin reaffirmed solidarity with Venezuela during a December 11 phone call with President Nicolás Maduro, expressing backing for policies protecting Venezuelan sovereignty.
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However, the pullout is the latest challenge to Venezuela’s struggling oil sector. The country’s José industrial complex suffered major disruptions this year, with multiple upgrader units offline, limiting heavy crude processing capacity to historic lows.
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Russia’s Venezuela operations have faced mounting pressure since 2019, when Washington imposed sanctions on Venezuela’s oil sector. Rosneft initially transferred assets to Roszarubezhneft to circumvent restrictions, but the strategy proved unsustainable as sanctions expanded to target Russian energy companies supporting Moscow’s invasion of Ukraine.
The US Treasury designated Rosneft and Lukoil in October 2025, imposing full blocking sanctions that severely limited Russian oil companies’ ability to operate internationally. Chinese state-owned companies reportedly suspended Russian oil purchases following the designation.
Venezuela now relies primarily on partnerships with China, which has invested between $60 billion and $70 billion in the country since 2005, and US company Chevron, which maintains operations under a specific license from Washington.
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