One of President Donald Trump's billionaire pals is about to score huge profits thanks to the ousting of Venezuela's Nicolás Maduro.
Writing on Monday, "Public Info" reporter Judd Legum revealed that Paul Singer, who has a net worth of about $6.7 billion, donated $5 million to Trump's super PAC and to Trump's political allies. He was also a major donor to Trump's transition team, where contributions don't have to be disclosed.
In November, Singer bought Citgo, a U.S.-based subsidiary of Venezuela's state-run oil for $5.9 billion. It was a "bargain price," said Legum, because at the time there was an embargo on Venezuela's oil exports. In the past, Citgo has been forced to get its oil from Columbia or Canada, which offer more expensive sources than oil produced in the United States. So, profits were down.
"Citgo owns three major refineries on the Gulf Coast, 43 oil terminals, and a network of over 4,000 independently owned gas stations," wrote Legum. "By all accounts, Singer acquired these assets at a major discount. Advisors to the court that oversaw the sale valued Citgo at $13 billion, while Venezuelan officials said the assets were worth as much as $18 billion."
Singer's private investment firm, Elliott Investment Management, is called a “vulture” fund because it swoops in to buy up distressed assets for pennies on the dollar.
Trump has tried to tie the fentanyl crisis to Venezuela, but the country doesn't make it. Instead, the drug cartels are focused more on cocaine.
That said, Trump has been saying for years that he wants Venezuela's oil. He has also been spreading rumors that the country was was on the brink of "collapse."
When he left office in 2021, Trump claimed that if he remained in office, he would have taken over Venezuela and “gotten all that oil.”
As Legum closed, 'Paul Singer, thanks to a well-timed transaction, will be one of the largest beneficiaries."
Read the full column here.
