International Trade
Incoming cargo at Puerto Cabello:
- 146 chicken and beef containers from Brazil and
Argentina for Corporación de Abastecimiento y Servicios Agrícolas (CASA)
- Over 45 tons of toilet paper and other personal
care products from Procter & Gamble Int México for its subsidiary in
Venezuela
- 21
tons of yellow corn from Desa Industries for Agrolucha, Alfonca Alimentos
Fontana C.A. and Avícola La Guásima C.A.
More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Casa-recibio-146-contenedores-con-pollo-carne-y-margarina-2205470/2014/07/28/341818)
Venezuela says MERCOSUR is open to relations with the
Pacific Alliance
Following a proposal by Brazil's President Dilma
Rousseff for speeding up a free trade agreement between MERCOSUR and the
Pacific Alliance, Venezuela's Foreign Minister Elías Jaua said the MERCOSUR
group is open to this idea. More in Spanish: (Infolatam, http://www.infolatam.com/2014/07/28/venezuela-dice-que-mercosur-esta-abierto-a-relacionarse-con-alianza-pacifico/?utm_source=Newsletter%20de%20)
Logistics
& Transport
IATA seeks meeting with Maduro over money owed to
airlines
A leading air transport industry body has called for a
top-level meeting with the Venezuelan president to discuss ways to restore over
U$D 4 billion of airlines' money that is trapped in the country due to its
currency controls. President Nicolas Maduro's government requires airlines to
sell tickets in the bolivar currency but has been slow to allow them to
repatriate the earnings. The International Air Transport Association (IATA),
which represents around 240 global airlines, said on Monday that while
Venezuela had permitted repatriation of U$D 424 million shared among some
airlines, U$D 4.1 billion of airline ticket sales remained trapped in the
country. "The goal should be to
clear the debts quickly in a way that is fair and acceptable to the airlines
involved," IATA Director General Tony Tyler said in a statement,
calling for Maduro to lead talks with IATA on behalf of the carriers that have money
trapped in the country. IATA said that international capacity on routes to
Venezuela is down 36% year-on-year, or down 49% from 2013 peaks. "Confidence in the market is falling sharply,"
Tyler said. "Venezuela risks
becoming disconnected from the global economy." (Reuters, http://www.reuters.com/article/2014/07/28/venezuela-airlines-idUSL6N0Q33IL20140728)
Oil &
Energy
CITGO’s net profits dropped 63% to U$D 170 million in
the first quarter of this year,
well below the U$D 461 million posted in the same period in 2013. This was due
to lesser volumes of crude oil sold and the behavior of oil prices, according
to financial information of PDVSA’s subsidiary in the United States. Net sales
were down to U$D 1.2 billion. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=40362&idc=4)
PDVSA weighs sale of its 50% stake at Chalmette
refinery
Venezuelan state-run oil company Petróleos de
Venezuela (PDVSA) has been pondering the sale of its refineries in the United
States; thus, it has been holding talks with investment banks. The industry has
approached Deutsche Bank in the search of buyers for its 50% stake in Chalmette
refinery, located in Luisiana, and whose capacity amounts to 184,000 barrels
per day (bpd), a PDVSA officer told Argus Media. (El Universal, http://www.eluniversal.com/economia/140728/pdvsa-weighs-sale-of-its-50-stake-at-chalmette-refinery)
Economy
& Finance
Central Bank adds obstacles to the process of
acquiring FOREX under SICAD II
Venezuela's Central Bank and Finance Ministry have
established additional requirements for parties trying to acquire FOREX through
the SICAD II system (VEB 50/U$D1). Individuals need to show they reside in
Venezuela, present an original copy of the income certificate for payees dated
no more than 30 consecutive days prior to the date of the transaction, a copy
their last income tax filing and its payment, and an original and duplicate
copy of their tax number. Companies need to provide copies of their last two
income tax returns. Financial analysts say the new requirements will limit the
number of people and companies that can go through the SICAD II system. One
analyst says "if the company is new o the individual has just entered the
labor market they cannot use this system." More in Spanish: (El Nacional; http://www.el-nacional.com/)
Maduro says Venezuela will strengthen its reserve
position
Speaking to the 3rd Party
Congress of the PSUV government party, President Nicolás Maduro said that
financial operations are being carried out in order to increase international
reserves, and consolidated several funds held in FOREX. The move has been
announced at different times by Venezuelan officials over the past year. Maduro
also claimed "Venezuela has
sufficient dollars for the market this year and those to come." More in
Spanish: The Government has been making similar announcement over the years. (El
Universal, http://www.eluniversal.com/economia/140729/gobierno-afina-operaciones-para-fortalecer-las-reservas)
Exchange houses will sell foreign currency and
traveler’s checks, via bank
transfers, to individuals pending formal notice that the practice is approved
by Venezuelan Central Bank (BCV). (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=40358&idc=2)
Venezuela's comptroller: Dummy corporations are a huge
racket
Venezuela's Comptroller General Adelina González has
confirmed reports that dummy corporations may have bought huge amounts of FOREX
through the Foreign Exchange Administration Commission (CADIVI). (El
Universal, http://www.eluniversal.com/nacional-y-politica/140728/venezuelas-controller-front-corporations-are-a-huge-deal)
Politics
Aruba frees Venezuelan ex-general sought by U.S. over
drugs, terrorism connection
A former Venezuelan military intelligence head
detained on the Caribbean island of Aruba over U.S accusations of
drug-trafficking was released and flew home on Sunday. Instead of being
extradited to the United States, retired General Hugo Carvajal flew home after
the Netherlands government ruled he had diplomatic immunity, his lawyer and
Venezuelan officials said. Carvajal, who ran military intelligence from 2004 to
2008 during the presidency of the late Hugo Chavez, was arrested on Wednesday
after flying to the semi-autonomous island that is part of the kingdom of the
Netherlands. Jubilant Venezuelan officials at a congress of the ruling
Socialist Party celebrated his release as a "victory" over their ideological foes in the United States. Carvajal was declared persona non
grata in Aruba after the Netherlands admitted his diplomatic status on Sunday.
Aruba’s Attorney General Peter Blanken said he cannot return to the island lest
he will be arrested again. The State Department spokesperson added “We are concerned over credible reports we
have received that indicate the Venezuelan Government threatened the
governments of Aruba and the Netherlands to get this result...this is not the
way in which legal enforcement affairs should be handled", and said US
will continue efforts to bring Carvajal to justice. In less than 48 hours the
Dutch government did a complete about face on the issue of general Carvajal's diplomatic
immunity. The accused general now says that Aruba's Attorney General and judge are
corrupt were bribed to detain him. He thanked his comrades and the people of
Venezuela for their "solidarity".
(Reuters, http://www.reuters.com/article/2014/07/28/us-venezuela-usa-arrest-idUSKBN0FW0QX20140728;
Bloomberg, http://www.bloomberg.com/news/2014-07-27/chavez-s-ex-spy-chief-to-be-freed-after-aruba-detention.html;
Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2345420&CategoryId=10717,
http://www.laht.com/article.asp?ArticleId=2345357&CategoryId=10717;
Fox News, http://www.foxnews.com/world/2014/07/27/venezuela-says-former-general-arrested-in-aruba-on-us-drug-charges-to-be-freed/,
http://www.foxnews.com/world/2014/07/28/officials-fume-as-former-venezuelan-general-slips-us-grasp-is-received-as-hero/;
Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=40350&idc=1;
Fox News, http://www.foxnews.com/world/2014/07/28/aruba-releases-former-venezuela-ge
neral-wanted-by-us-on-drug-charges/)
Venezuelan officers linked to Colombian cocaine
traffickers
The head of Venezuelan military intelligence was on
the payroll of a Colombian drug lord, invested his own money in drug shipments
and personally coordinated the shipment of thousands of kilograms of cocaine,
according to prosecutors in Miami and New York. And Venezuela’s liaison with
Interpol took hundreds of thousands of dollars in bribes from another
trafficker, the Miami prosecutors said. Three federal indictments unsealed last
week open a window onto accusations of ties between Venezuelan military and law
enforcement officers and Colombian narcotics traffickers, a connection that
officials in Washington have long warned about and that has been roundly
dismissed by the authorities here. Experts said the indictments help connect
some of the dots between traffickers and the Cartel of the Suns, a loosely
defined group of Venezuelan government and military officials suspected of
having drug ties. Full report: (The New York Times)
Venezuela's ruling socialist party holds first
post-Chavez convention amid internal dissent
Venezuela's socialist party is holding its first
national convention since the death last year of President Hugo Chavez, with
delegates hoping to quell infighting and discontent about party leadership. Behind
the scenes pragmatists and hard-liners will be battling to hammer out a vision
for the coming year. Hundreds of delegates will consider proposals from members
all over the country, many of which concern the escalating economic crisis that
has gripped the oil-rich country, provoking widespread shortages and soaring
inflation. (Fox News, http://www.foxnews.com/world/2014/07/26/venezuela-ruling-socialist-party-holds-first-post-chavez-convention-amid/)
Maduro hints at a new constitutional assembly to "go deeper into socialism"
Following on calls by what
he called "right wing elements"
to call for constitutional assembly, President Nicolás Maduro told the PSUV 3rd
party congress that "we could use a constitutional assembly to go deeper
into socialism". More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/140728/psuv-no-descarta-una-constituyente-para-mas-socialismo)
Venezuelan court remands in custody retired military
official
Venezuela's Court-Martial has ordered the arrest of
retired General José Vietri Vietri, former chief of the Presidential Escort Corps
under the late President Hugo Chávez. Vietri has been charged with incitement
to military rebellion, his lawyer, Alonso Medina Roa, stated on
Monday. Vietri was arrested on July 25 at his residence in Caracas, and
taken to the headquarters of the Military Counter-intelligence Directorate,
said his attorney. The retired official attended a hearing on Monday at the
Military Court, which remanded him in custody, Medina Roa told AP in a
telephone interview. (El Universal, http://www.eluniversal.com/nacional-y-politica/140728/venezuelan-court-remands-in-custody-retired-military-official)
Maduro says the "little bird" spoke to him again and told him Chavez is happy
During a ceremony in Barinas state, marking the late
president's 60th birthday, President Nicolás Maduro called Chavez a "great prophet" and said that the
"little bird" again spoke
to him and said Chavez was happy. En enormous cake was cut at the ceremony and
a statue of Chavez - donated by Russia's ROSNEFT oil company - was unveiled. (Infolatam)
Arial, Times New Roman ... and now the 'Hugo Chavez'
font
Supporters of Venezuela's late socialist leader Hugo
Chavez have unveiled yet another novel way of keeping his memory alive - a font
for typing in "El Comandante's"
handwriting style. The distinctive 'ChavezPro'
font was launched by a group of young "anti-imperialists"
to coincide with nationwide commemorations of the 60th anniversary of his
birth. Chavez's bold scrawl became famous to Venezuelans as he used to spend
hours on national TV writing and drawing on boards and papers to explain
policies, develop ideas and sign deals. His signature, in red for socialist,
adorns T-shirts, baseball caps and the walls of buildings around the nation. (Reuters,
http://www.reuters.com/article/2014/07/28/venezuela-chavez-idUSL2N0Q31LC20140728)
The following brief is a synthesis of the news
as reported by a variety of media sources. As such, the views and opinions
expressed do not necessarily reflect those of Duarte Vivas & Asociados and
The Selinger Group.
