International Trade
Cargo that has arrived at Puerto Cabello:
- Over 616 tons of parts
for public transport vehicles from Yutong for Vialidad y Construcciones
Sucre S.A.
- Over 585 tons of anti
riot vehicles from Russia for the Venezuelan Armed Forces
- Over 500 tons of milk from Sancor for state
agency Corporación de Abastecimiento y Servicios Agrícolas (CASA)
- Over 437 tons of herbicides
from Sanonda for state agency Corporación Venezolana de Comercio Exterior (CORPOVEX)
Oil &
Energy
Venezuela loses bid to
recuse arbitrators in CONOCO dispute
A World Bank tribunal has rejected Venezuela's
request to recuse two arbitrators in a dispute with U.S. oil firm
ConocoPhillips linked to the 2007 nationalization of the company's assets here.
The Oil Ministry had asked the International Centre for Settlement of
Investment Disputes (ICSID) to remove arbitrators Kenneth Keith and Yves
Fortier from the three-person panel for their "marked attitude against the Republic." The ICSID's
administrative council rejected the request, describing Venezuela's complaints
as "unsubstantiated" and
"irrelevant," according to
a document posted on its website (goo.gl/RrMyIv). CONOCO is seeking compensation
over the 2007 takeover of projects including two multibillion dollar heavy oil
operations. ICSID in a partial ruling last year said that move was unlawful. (Reuters,
http://www.reuters.com/article/2015/07/01/us-venezuela-arbitration-conocophillips-idUSKCN0PB63N20150701)
Caribbean oil agreement to continue
Asdrubal Chavez and Delcy Rodriguez,
Venezuela's Oil and Foreign Affairs Ministers, told the 15th PETROCARIBE’s
Ministerial Council meeting that the energy supply agreement will continue,
regardless of the current instability of oil prices. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44481&idc=4)
PETROCARABOBO inaugurated an extra heavy crude
oil processing center in the Orinoco oil belt
The PETROCARABOBO
joint venture has inaugurated a US$ 107 million Fluid Processing Center with a
30,000 BPD processing capacity for extra heavy crude oil that is extracted in
the Orinoco oil belt. More in Spanish: (Noticias 24, http://www.noticias24.com/venezuela/noticia/288195/petrocarabobo-arranco-centro-de-procesamiento-de-crudo-extrapesado-en-la-faja/)
Greece to sign an energy agreement with
Venezuela in the next few days. Venezuela’s Mining and Oil Minister Asdrúbal Chávez
reports his Greek counterpart Panayotis Lafazanis will visit Caracas to sign a
Memorandum of energy cooperation between both nations. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44494&idc=4)
Commodities
Minority pro regime
unions shut two Polar breweries as beer shortage looms
Minority unions close to the Venezuelan
government say they shut two breweries belonging to the country's largest
private company over a wage dispute, setting the stage for a potential shortage
in the alcohol-loving nation. A group of workers have walked out of Empresas
Polar's plants in Caracas and eastern Anzoategui state, as well as 16
distribution centers, said employees marching in the capital in protest. "They've delayed our collective contract for
over 20 months, and the company refuses to recognize our union," said
Jose Rojas, spokesman for one of at least two unions that helped shut the
plants, before entering the public prosecutor's office in Caracas to submit a
complaint. (Reuters, http://www.reuters.com/article/2015/07/02/venezuela-beer-idUSL1N0ZI1I720150702)
PDVSA buys 98% of all iron and steel production
from basic industries here, according to Hector Rodríguez, a member of
the Presidential Commission for the Socialist Guayana Plan. More in Spanish:
(Noticias 24, http://www.noticias24.com/venezuela/noticia/288210/pdvsa-adquirio-el-98-de-la-produccion-siderurgica-que-han-tenido-las-empresas-basicas-del-pais/; Entono Inteligente, http://www.entornointeligente.com/articulo/6372577/Pdvsa-adquirio-98-de-produccion-siderurgica-de-las-empresas-basicas)
Bread inventories running out, bakeries have
one week left of wheat flour
A survey of bakeries in Caracas reveals there
is a 50-60% drop in bread production due to a lack of wheat flour, and "the most worrisome part is that they have no
idea when they will get more". More in Spanish: (El Nacional; http://www.el-nacional.com/)
Economy
& Finance
Venezuela "default is a real possibility" says
FITCH
FITCH Ratings Global credit rating firm has
affirmed Venezuela's Long-term foreign and local currency Issuer Default Rating
(IDR) at 'CCC'. Fitch has also affirmed the sovereign's Short-term foreign
currency IDR at 'C' and the country ceiling at 'CCC'. Fitch defines CCC as
"Substantial Credit Risk. Default is a real possibility." The
Short-Term rating of C means "Exceptionally
high levels of credit risk. Default is imminent or inevitable." (Latin
American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2391463&CategoryId=10717; El Universal, http://www.eluniversal.com/economia/150702/fitch-maintains-venezuelas-debt-rating-at-ccc)
Venezuela's sovereign bonds riskier than
Greece's
Yield on Venezuela's 2025 sovereign bond has
risen to 25.84% while a similar Greek government bond is yielding 16.04%,
indicating international markets see country risk for Venezuela as worse than
Greece's. Investors still believe developed economies within the European Union
will rescue Greece. More in Spanish: (El Universal, http://www.eluniversal.com/economia/150703/que-esta-pasando; El Nacional; http://www.el-nacional.com/)
Venezuela and China
tweak terms of oil-for-loans agreement, approve development plan road map
Venezuela and China have modified the terms of
an oil-for-loans financing agreement, establishing a three-year repayment
period for a tranche that previously did not have a payment time frame. The
deal allows Venezuela to borrow from China in tranches of up to US$ 5 billion
and repay with shipments of crude and fuel. The latest amendment adds a
three-year repayment period to Tranche C, the third of three tranches. It was
not immediately evident what motivated the change. The Technical Secretariat of
the Venezuela-China High Level Joint Committee has approved a road map for
pursuing the objectives of the Venezuela-China Joint Development Plan. The road
map will be signed in the next Joint Committee, to be headed by Presidents
Nicolás Maduro and Xi Jinping sometime during the last four months of the year.
(Reuters, http://www.reuters.com/article/2015/07/02/us-venezuela-china-idUSKCN0PC29N20150702; El Universal, http://www.eluniversal.com/economia/150702/venezuela-china-approve-road-map-for-development-plan)
Politics and
International Affairs
U.S-Venezuela talks
began at Maduro’s request, US official reports
The United States and Venezuela have embarked
on their most extensive dialogue in years in an attempt to improve their
acrimonious relations, according to a senior U.S. administration official. The
official, who has direct knowledge of the high-level talks, cautioned that the
process is at an early stage. Maduro made the first move in March by requesting
a "direct channel of communication"
with U.S. President Barack Obama and the State Department, said the official. "He
realized that if we can talk to the Cubans, we can talk to him," the
official told Reuters. The dialogue
did not begin in earnest until April, when Obama briefly met with Maduro in
Panama at the Summit of the Americas, and has developed into a two-track effort
to separate areas of disagreement, such as Venezuela's clamp-down on domestic
political opposition, from those of shared interest including peace talks in
Colombia and elections in Haiti, the U.S. official said. U.S. officials pressed
Venezuela's powerful parliamentary chief Diosdado Cabello during a June 14
meeting in Haiti to set a date for parliamentary elections this year and to
release political prisoners, including jailed opposition leader Leopoldo Lopez,
the U.S. official said. He added that it was important to engage Cabello
because he is seen as a rival for power with Maduro, although the two deny it. "The two most apparent power centers in the
Venezuelan government are Maduro and Cabello," the U.S. official said.
"We knew we had to connect Cabello
and Maduro in some way. Even though they insist they aren't, they are
competitors." The challenge ahead, the official said, was to reach
agreement on meaningful observation of the December vote. "We figure if we can help Venezuelans
construct an election that everybody supports, and if we can help them get a
result that everyone recognizes that is a starting point," the official
added. (Reuters, http://www.reuters.com/article/2015/07/01/us-venezuela-usa-exclusive-idUSKCN0PB5WR20150701)
Kerry urges dialogue,
cooperation in message to Venezuela
Secretary of State John Kerry has urged
Venezuela's government and opposition to find a "peaceful resolution" to their disputes before a Dec. 6
parliamentary election and said the United States wanted to improve ties. In a
message to Venezuela to mark the country's independence on July 5, Kerry
referred to recent talks between Washington and Caracas, saying he hoped the
two countries could find ways to cooperate. "As you look toward legislative elections, political dialogue will be
important in ensuring peaceful resolution of disputes and the integrity of your
democratic process," Kerry said in his message. (Reuters, http://www.reuters.com/article/2015/07/02/us-venezuela-usa-idUSKCN0PC2P620150702;
El Universal, http://www.eluniversal.com/nacional-y-politica/150702/the-us-calls-for-dialogue-in-venezuela-ahead-of-parliament-vote)
Maduro snubs
influential Republican senator
The Republican chairman of the U.S. Senate
Foreign Relations Committee made a surprise two day visit to Venezuela amid a
U.S. effort to reduce tensions with this nation. Senator Bob Corker of
Tennessee unsuccessfully tried to meet with President Nicolás Maduro, who
snubbed him in what some call a "very
stupid" diplomatic mistake. Sources close to his visit report Maduro -
upset that the meeting had been disclosed - made Corker wait several hours and
in the end did not meet with him although the meeting had been planned several
days in advance. Corker did meet with Captain Diosdado Cabello, President of
the National Assembly, and with opposition leader María Corina Machado. Upon
his return, the Senator said "Venezuela
is heading for very difficult times that will lead to even greater suffering by
its people, who deserve a better fate". It had been expected that the Caracas regime
had planned to announce freedom for an undetermined number of political
prisoners, including Voluntad Popular leader Leopoldo López. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2391428&CategoryId=10717;
Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44480&idc=1;
El Universal, http://www.eluniversal.com/nacional-y-politica/150702/us-senator-warns-about-very-hard-days-in-venezuela; Associated Press: http://news.yahoo.com/us-senator-visit-venezuela-amid-diplomatic-detente-210020601.html;
and more in Spanish: El Nuevo Herald, http://www.elnuevoherald.com/noticias/mundo/america-latina/venezuela-es/article26173117.html#storylink=cpy)
Guyana seeks CARICOM's
support in dispute with Venezuela
Guyana's Minister of Foreign Affairs Carl
Greenidge says the border dispute between his country and Venezuela in relation
to the waters of the Essequibo concerns the Caribbean Community and asked for CARICOM's
support at the summit started on Thursday in Barbados. Greenidge said that the
borders defended by Venezuela, "in
addition to being illegal under the international law, grant it maritime spaces
and other resources that are accepted as part of the exclusive economic zone of
each State in the Eastern Caribbean, from Saint Kitts and Nevis to Grenada and
Suriname." (El Universal, http://www.eluniversal.com/nacional-y-politica/150702/guyana-seeks-caricoms-support-in-dispute-with-venezuela)
Desmond Tutu warns: No
more hiding From Venezuela’s abuses
Desmond Tutu, Archbishop emeritus of Cape Town
and recipient of the 1984 Nobel Peace Prize says: "Don’t be misled by news about elections—the government violates human
rights, emboldened by the international community’s silence". In an
op-ed column Tutu adds: "It is
encouraging to see the Venezuelan government make motions toward respecting
democracy—but a true election cannot be held when more than 75 political
prisoners languish in jail. Venezuela must be held accountable for its
human-rights abuses...Unfortunately, important voices—namely, Venezuela’s
neighbors in Latin America—have remained muted.... Their inaction gives Mr.
Maduro license to act with impunity...I urge the Maduro government to allow the
Red Cross access to the 100 or so prisoners who joined the hunger strike in
solidarity." (The Wall Street Journal, http://www.wsj.com/articles/SB11760718815427544683404581070303188592870)
Felipe González to
return to Venezuela before parliament vote
Spain's former President Felipe González has announced
that he will return to Venezuela, probably before of the parliament vote in
December. "Unless the Vienna
Convention declares me persona non grata, I have the right to circulate freely,"
González remarked after meeting with Lilian Tintori and Mitzy Capriles, the
wives of detained dissenters Leopoldo López and Caracas Metropolitan Mayor
Antonio Ledezma, respectively. (El Universal, http://www.eluniversal.com/nacional-y-politica/150702/felipe-gonzalez-to-return-to-venezuela-before-parliament-vote)
Vargas Llosa calls "fairness" of upcoming Venezuelan
vote into question
Peruvian author Mario Vargas Llosa has called
the "fairness" of the
parliamentary elections to be held in Venezuela on December 6 into question,
and adds that the government of President Nicolás Maduro will do as much as
possible to tamper with the election. (El Universal, http://www.eluniversal.com/nacional-y-politica/150702/vargas-llosa-calls-into-question-fairness-of-venezuelan-vote)
Dissident "chavistas"
estimate 84.5% abstention in ruling PSUV party primaries
Although regime officials claim 3.162 million
turned out for government party PSUV primaries last Sunday, dissent
"chavistas" grouped in the Socialist Tide movement say abstention was
around 84.5%. Nicmer Evans, a spokesman for the group says: “It is valid to doubt results publicized by
the leadership." Carabobo Governor Colonel Francisco Ameliach has
called for a pact of all sides of the pro government spectrum towards elections
on December 6th. "Voting was not for
a single individual, it was for a majority in the National Assembly, so we must
now forget differences and concentrate on a great victory". Threats by President Nicolás Maduro - who
said they would know who voted and who did not - were among the reasons for a
higher turnout later in the day the voting was carried out. Evans also charges
that in some locations PSUV leaders sought the support of local opposition
leaders to inflate turnout numbers. More in Spanish: (El Nacional, http://www.el-nacional.com/politica/PSUV-olvidar-diferencias-estrategia-parlamentarias_0_657534512.html)
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.
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