Russia could face costly write-offs in Venezuela on its oil assets and arms loans, think tank analyst says

"Russian investments in Venezuela's oil industry over the last twenty years will now have to be, formally or informally, written off,"

"The overall market appeal of such arms has clearly been diminished,"

"Some $2 billion to $3 billion in annual trade between Russia and Venezuela could also "cease altogether," he added."

"The Trump administration's emphasis on preserving a US sphere of influence in the Western Hemisphere could also seem to validate Russia's claims for a similar sphere in its own neighborhood,"

A US military operation on January 3 has put Russia's strategic investments and cooperation with Venezuela at risk. Russian investments in Venezuela's oil industry over the last two decades face the prospect of being written off, and loans for Venezuelan purchases of Russian weapons could be lost. Annual bilateral trade of roughly $2 billion to $3 billion may halt. Political gains for Russia could include perceived validation of regional spheres of influence, but these come as the Russian economy faces pressure from Western sanctions and depressed oil prices while the war in Ukraine nears its fifth year. President Vladimir Putin has not commented publicly.

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