April 10, 2018

International Trade

Venezuela “may” charge for exports in oil-backed cryptocurrency Petro

President Nicolás Maduro has revealed that the country’s state-owned companies may start charging for exports in the country’s oil-backed cryptocurrency, the Petro (PTR). According to the country’s Cuatro F newspaper, even real estate is set to be purchasable with the cryptocurrency. In a piece published in the newspaper, Maduro stated that as of April 20, it will be possible to use the Petro to buy products throughout the country, as well as real estate. As part of the move, Maduro informed the country’s interior minister, General Néstor Reverol, to make it so that these transactions can be made through the country’s Autonomous Service of Registries and Notaries (SAREN). It also reveals that state-owned companies will start creating Petro wallets, so they can start charging for exports in the oil-backed cryptocurrency. The Venezuelan leader reportedly specified PDVSA, a state-owned oil and natural gas company that was targeted by the US’ sanctions. Cuatro F’s piece adds (roughly translated): “This means that Venezuela will be able to charge in petros its oil, gas, steel, aluminum, petrochemical products, cocoa, among other goods exported”. Likewise, the Central Bank of Venezuela (BCV) was authorized by decree to collect in petros for the export of gold from small mining and handcrafted items. Additionally, the piece notes, private companies will be able to pay taxes in Petros “including the huge debt they have for their operations during the years 2016 and 2017.” (CCN: https://www.ccn.com/venezuela-may-charge-for-exports-in-its-oil-backed-cryptocurrency-petro/)

 

Maduro regime claims Russia accepts payment for goods from Venezuela in cryptocurrency

Venezuela will pay the Russian Federation for providing automotive parts in its own digital currency, the Petro, according to the Venezuelan minister of foreign trade Jose Vielma Mora, who said: "[The issues of cooperation] include the purchases of automotive parts and components, of tires and batteries, as well as assembling of these vehicles in our country and the forms of payment, in which we include the payments with the use of Petro."  (CoinIdol: https://coinidol.com/russia-accepts-payment-in-national-cryptocurrency/)

 

Logistics & Transport

Chaos, isolation grows as COPA halts service to Caracas

Scenes of chaos at the Caracas counter of Panama’s COPA -- one of Latin America’s best regarded airlines -- were visible Friday morning, as the carrier was ordered to stop operating in Venezuela by the embattled administration of Nicolas Maduro, part of a wider tug-of-war between Panama and Venezuela. Besides the diplomatic confrontation, Venezuelans – who have fled the country by the millions since the start of the Bolivarian "Revolution" in 1999 -- complained Friday of being more isolated. And with good reason: while there were 23 airlines flying out of Venezuela in 2013, the year Maduro took over from his mentor and predecessor Hugo Chavez, there were only 6 remaining as of Friday. AeroMeteo, a Twitter account that tracks airline activity in Venezuela, said there were only six flights crisscrossing the oil-rich nation Thursday afternoon, compared with 30 for neighboring Colombia. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2454254&CategoryId=10717)

 

Maduro regime reopens air, sea links to Caribbean islands

Venezuela on Monday reopened air and sea links to the islands of Aruba, Bonaire and Curacao, three months after cutting them off in an attempt to curb smuggling. The move is a welcome relief to those in Venezuela who can afford to fly out, after COPA, one of the last major airlines still operating here, was forced by authorities to suspend services last week. The majority of international airlines have pulled out of the crisis-hit country over the last few years, citing economic and security concerns. An Aruba Airlines plane took off from Valencia airport, some 150 km (93 miles) from Caracas, on Monday morning on its way to the Aruban capital of Oranjestad. Transport Minister Carlos Osorio announced the reopening of links from the runway. (CNBC: https://www.cnbc.com/2018/04/09/reuters-america-venezuela-reopens-air-sea-links-to-caribbean-islands.html)

 

Oil & Energy

Venezuela oil price slips in first week of April

The price Venezuela receives for its mix of medium and heavy oil fell during the first week of April. According to figures released by the Ministry of Petroleum and Mining, the average price of Venezuelan crude sold by Petroleos de Venezuela S.A. (PDVSA) during the week ending April 6 fell to US$ 59.69, down US$ 1.58 from the previous week's US$ 61.27. WTI in New York averaged US$ 63.67 -- down US$ 1.72 -- for the week, while Brent crude traded in London averaged US$ 68.29 -- down US$ 1.66 from the previous week. According to Venezuelan government figures, the average price in 2018 for Venezuela's mix of heavy and medium crude for 2018 is US$ 59.66 so far. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2454255&CategoryId=10717)

 

Commodities

The bloody grab for gold in Venezuela’s most dangerous town

In Venezuela’s gold capital, national guardsmen block the roads. Military convoys and motorcycles circle while soldiers keep wary watch behind sandbag checkpoints or patrol with faces covered by balaclavas and rifles in hand. The military has been fighting for months to master El Callao, the dangerous nation’s most dangerous town, and a beachhead in efforts to develop a mineral-rich region the government calls the Arco Minero del Orinoco. President Nicolas Maduro granted the army the handsome prize, a move that helps ensure the unpopular autocrat’s power. But the takeover has been punctuated by blood and bullets as soldiers raid neighborhoods and clandestine mines across 70,000 square miles from Colombia to Guyana, asserting themselves over gang lords and claiming revenue both legal and illicit. On Feb. 10, the army seized weapons, burned vehicles and killed 18 civilians — including a woman and a youth — in one of the deadliest clashes since the project’s inception. Many victims were shot in the head and face, according to police photos and death certificates obtained by Bloomberg. Maduro faces a May 20 election with support from only about a fifth of the population and he is turning over swathes of the economy to the 160,000-member military, the strongest power in a failing state. Active and retired officers hold 14 of 32 cabinet posts. Soldiers have replaced many of the 80 state oil company leaders whom Maduro has imprisoned since August. The ports have been militarized and the Defense Ministry oversees the hungry nation’s food supply. The Arco Minero is another lucrative franchise granted by Maduro. “It’s an incentive for loyalty,” said Rocio San Miguel, president of the Control Ciudadano watchdog group in Caracas. “It’s indicative of where the forces of power lie in Venezuela. Military power is hegemonic and in control of everything.” Maduro has promoted hundreds of officers since he became president in 2013 — there are now some 1,300 generals and admirals. High-ranking members of the military control legitimate industries, black markets and the nation’s security, creating a “perverse relationship,” said Diego Moya-Ocampos, an Americas analyst at IHS Markit, a London consultant. In El Callao, years of dwindling oil revenue and failed statist policies have the government craving gold deposits it claims total as many as 8,000 tons, which would be the world’s second-largest behind Australia. The Arco Minero produced 8.5 tons in 2017, while Maduro hopes to raise production to 24 tons by year-end, according to mining minister Victor Cano. Official production fell to a single ton in 2016, according to the CPM Group, a commodities researcher. But that year, Maduro granted the armed forces wide-ranging security powers and let them create a company that would provide mining services. He invited 150 companies to exploit diamonds, gold and coltan in the region, but few partners materialized. Now, shootouts regularly erupt among soldiers and rival gangs. Over the past year, local news outlets have reported dozens of killings by state forces in El Callao and surrounding areas. Cano, the mining minister, said in an interview the armed forces respect human rights, but miners must put themselves on the right side of the law. “If they’re doing criminal activities, they can’t be expected to be treated like saints.” The miners are extorted by all sides, but still they flock to muddy pits and hand-dug shafts to pick and pan. At the apex of this isolated economy sits the national guard. The force manages the flow of gasoline for generators and water pumps, and controls commerce. In the almost 120-mile (190 kilometer) drive from Puerto Ordaz to El Callao, there are more than a half-dozen military and police checkpoints. “They control the territory, they control the legal system — the rules — and they have the guns,” said San Miguel of Control Ciudadano. “It’s an area that functions in a completely feudal sense.” Low-ranking soldiers shake down individual miners and smugglers, while officers extract tributes from armed groups for the right to do business. Those gangs in turn extort anyone wishing to work. Then, there’s the official business: The Venezuelan central bank purchases gold in El Callao from select brokers, mill associations and groups of registered miners, dubbed “mining brigades.” State gold processor MINERVEN melts the ore into bars, which military aircraft take to airbases around Caracas. Soldiers unload the riches into armored vehicles bound for the Central Bank. The bank is selling off gold to keep the country afloat, drawing down its reserves of the metal to US$ 6.6 billion from almost US$ 20 billion at the beginning of 2012. (Bloomberg: https://www.bloomberg.com/news/features/2018-04-09/the-bloody-grab-for-gold-in-venezuela-s-most-dangerous-town)

 

Economy & Finance

Venezuela debt crisis nears new low as riskiest bond matures

The Venezuelan debt crisis could be on the verge of a new milestone as a US$ 650 million bond matures Tuesday with little hope it’ll get paid. The notes from the state-run electric utility were always considered among the country’s riskiest securities because the downsides to a default are relatively minor. They don’t contain any cross-default rules that would affect sovereign debt or notes from the state oil company, and the utility doesn’t have any overseas assets that investors could try to seize. A missed principal payment would mark a new low for Venezuelan investors who are already confronting US$ 2 billion in late interest but haven’t yet seen the government skip out on paying back maturing notes. Electricidad de Caracas (ELECAR)’s notes trade at about 33 cents on the dollar, signaling that investors view them as the riskiest debt maturing this year in the world’s riskiest nation. Fitch Ratings puts them one notch above default. Only some holders received an interest payment due in October and the trustee declared a default. If the bond does get paid, investors who bought the notes now would make a quick 150% profit. It could also spur a rally in other Venezuelan debt. The last glimmer of hope money managers can cling to is unsubstantiated speculation that a group of wealthy Venezuelans with government connections holds a large chunk of the debt, and Maduro’s administration wouldn’t want to give them reason to be angry. (Bloomberg: https://www.bloomberg.com/news/articles/2018-04-09/venezuela-s-debt-crisis-nears-new-low-as-riskiest-bond-comes-due)

 

Venezuela stopped bond payments in September

Venezuela stopped paying bondholders in September, according to local Central Bank data, contradicting statements by President Nicolás Maduro that the country would continue to honor its debts while negotiating a resettlement with its creditors. The data show that regular foreign debt payments of hundreds of millions of dollars a month, in line with the country’s sovereign obligations, fell to a few tens of millions from last October for fees and the legacy of a 1980s-era restructuring. “This proves that Venezuela is deliberately hoodwinking bondholders and engaging in a stealth default,” said Russ Dallen of boutique bank Caracas Capital, who follows Venezuelan debt closely. The data were posted in an Excel file as part of a recent revamp of the central bank’s website and include monthly expenditures in US dollars on public foreign debt payments going back to 1996. Previously, data on foreign debt payments were published in the form of a ratio that revealed little information. Maduro announced on November 2 that the country would restructure and refinance its debts after making one last payment on a bond owed by PDVSA, the state-owned oil company. S&P Global, the rating agency, declared the country in default shortly afterwards. Yet holders of bonds issued by PDVSA and ELECAR, a state-owned electric utility, have continued to receive sporadic payments, which have amounted to about US$ 2.5 billion since Maduro’s announcement. Several payments have been made late, sometimes after the 30-day grace payment for coupon payments. No payments at all have been received on bonds issued by the government of Venezuela, despite assurances that the process of payment was under way. The Central Bank data, which cover payments of sovereign debt only and exclude obligations by PDVSA and other state entities, show that just US$ 83 million was paid in October, compared with sovereign obligations amounting to US$ 465 million, according to data from Caracas Capital. Payments in November fell to US$ 28 million, compared with obligations of US$ 183 million, and in December declined to US$ 23 million, compared with obligations of US$ 242 million. October’s payment included about US$ 74 million due on a “Brady bond” that resulted from Latin America’s debt restructuring in the late 1980s. The payments in November and December attributed to foreign debt service would include lawyer’s fees and other costs, he said. Mr. Dallen said no money had been received by any holders of Venezuelan sovereign bonds. He said Venezuela had chosen carefully which PDVSA and ELECAR bonds to continue paying. Payments included US$984 million owed by PDVSA on a bond due in 2020 that is secured by 51% of the shares in CITGO, Venezuela’s US refining and distribution subsidiary. But he said evidence from clearing houses suggested these payments, too, had come to a halt. (Financial Times: https://www.ft.com/content/c291cb76-3c20-11e8-b9f9-de94fa33a81e)

 

Venezuela horror is warning for Russian traders after sanctions

Investors in Russian assets can look to Venezuela for an idea of what may be in store for them after the Trump administration levied sanctions against some of the country’s richest men. If Venezuela’s experience serves as a guide, the impact could stretch on for a while as companies confront the fallout from restrictions on international banking, communications and even the currencies they use for business. Here are some lessons Russian investors can take away from the saga faced by bond investors in Petroleos de Venezuela SA, the state-owned oil company known as PDVSA, which is currently behind on $730 million of interest payments:

• Payment chain: Investors typically pay little attention to financial institutions that help process bond payments. But Venezuela traders were forced to learn the names of all these intermediaries -- even having them on speed dial -- as payments came under extra scrutiny and some were ultimately held up on concern they might run afoul of sanctions. A similar ordeal in Russia would be a headache for overseas holders of its corporate notes.
• Currency: Restrictions on U.S. dollar transactions could increase borrowers’ reliance on alternate currencies such as the Chinese yuan. Venezuela started publishing its weekly oil basket price in yuan rather than dollars last year, and now hold auctions for its currency in euros instead of the greenback. Nicolas Maduro’s government has even gone so far as trying to issue a sovereign cryptocurrency, an idea also floated by Russia.
• Communication restrictions: Sanctions targeted at individuals limit, and in some cases prevent, money managers from meeting with company officials. When Venezuelan Finance Minister Simon Zerpa invited bondholders to Caracas for restructuring talks in November, many declined for fear of running into trouble with the U.S. Treasury, which had sanctioned Zerpa. That’s in effect made it impossible for the company to restructure its debts.
• Dependence: Venezuelan sanctions have also made PDVSA increasingly reliant on other pariah nations for financial assistance. Zerpa’s globetrotting has included recent trips to Russia, Turkey and China in a bid to drum up support.
• Patience: Bondholders who haven’t exited their positions may be stuck for the long haul as they await some resolution. For PDVSA, it’s due to the mix of defaults and a restructuring ban. Already we’re seeing something similar in Russia, where debt from United Co. RUSAL -- whose owner came in for sanctions -- is being removed from many bond-trading platforms.

(Bloomberg: https://www.bloomberg.com/news/articles/2018-04-09/venezuela-horror-is-warning-for-russia-traders-mulling-sanctions)

 

Politics and International Affairs

Venezuela court-in-exile calls for Maduro trial on corruption charges

Venezuela’s Supreme Court in exile on Monday asked their country’s armed forces and Interpol to detain President Nicolás Maduro, saying there was probable cause to put him on trial for corruption and other crimes. Speaking from Colombia’s capital, the court — which isn’t considered legitimate by the administration in Venezuela — said Maduro had overseen a web of corruption that allowed Brazilian construction firm ODEBRECHT to defraud the country to the tune of US$ 2.5 billion. “This criminal organization scheme needs to be investigated not just in Venezuela but internationally,” the court said.  The ruling comes after Venezuela’s former prosecutor general, Luisa Ortega, presented documents last week outlining Maduro’s role in what she says is widespread and systemic fraud. She said Maduro received US$ 35 million in illicit campaign contributions from ODEBRECHT in exchange for giving them lucrative construction projects — many of which were never started or are incomplete. The court asked INTERPOL to arrest Maduro if he leaves the country, saying it was the only way to ensure justice could be served. While the court’s rulings will be shrugged off in Venezuela, the exiled judges hope foreign governments will recognize their authority. The court said it will be sharing its Monday ruling with the United Nations, the Organization of American States and at the Summit of the Americas, a gathering of the leaders of the Western Hemisphere set to take place this weekend in Peru. The Maduro regime has charged the exiled Supreme Court justices with treason. (The Miami Herald: http://www.miamiherald.com/news/nation-world/world/americas/venezuela/article208338564.html; Fox News: http://www.foxnews.com/world/2018/04/09/exiled-jurists-launch-graft-trial-against-venezuelas-maduro.html)

 

Whoever is elected on May 20^th must be sworn in by National Assembly

Omar Barboza, President of Venezuela’s National Assembly, says that whoever is elected in the upcoming May 20th snap presidential elections must be sworn in by the National Assembly as the only legitimate representative of the Venezuelan people. He adds that if the so-called National Constitutional Assembly performs the swearing in it will be usurping a role it does not have. He says the group is not all-powerful because sovereignty remains with the people, who are the only ones who can call for a constitutional assembly. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/politica/omar-barboza-quien-sea-electo-en-los-comicios-del-20-m-debe-juramentarse-ante-la-an)

 

Venezuela dominates agenda ahead of Trump’s Latin American visit

U.S. President Donald Trump, who has disparaged Latin American countries over immigration, narcotics and trade, heads to the region this week for a summit that diplomats say is likely to be awkward and tense. Trump will arrive in the Peruvian capital, Lima, on Friday for the Summit of the Americas with an agenda of encouraging commercial ties and urging allies to take a hard line on Venezuela, according to U.S. officials who briefed reporters on the trip. The White House wants to turn up regional pressure on Venezuela's socialist president, Nicolas Maduro - disinvited from the summit - who called an election for May that his opposition and Washington have cast as a sham. Hundreds of thousands of Venezuelans have fled to Colombia and other neighboring countries to escape hunger and poverty. Trump mused last year about a "military option" to push for change in Venezuela, a comment widely condemned in the region. The United States, a major buyer of Venezuelan oil, has weighed ramping up economic sanctions. A U.S. official told reporters last week that no decisions were imminent but could be made over the next several months. At the summit, diplomats from countries critical of Maduro might formally condemn the election and discuss ways to help Venezuelan migrants, according to a source at Argentina's Foreign Ministry. (CNBC: https://www.cnbc.com/2018/04/09/smile-and-nod-latin-american-leaders-brace-for-tense-trump-visit.html; Reuters, https://www.reuters.com/article/us-americas-summit-trump/smile-and-nod-latin-american-leaders-brace-for-tense-trump-visit-idUSKBN1HG1CN)

 

Panama weighs further measures in fight with Venezuela

Panama’s foreign minister says her country may take further retaliatory measures against Venezuela if the neighboring nation doesn’t reverse diplomatic and trade bans announced last week. Isabel de Saint Malo said Monday that “let’s hope Venezuela revises some things, because otherwise Panama will have to take coherent countermeasures.” Venezuela banned key Panamanian businesses from operating on its territory after Panama’s government put Venezuelan President Nicolas Maduro on a list of Venezuelan officials deemed to be at “high risk” for laundering money. The ban included businesses of Panamanian President Juan Carlos Varela and COPA, one of the few airlines still operating within Venezuela. Panama then pulled its ambassador from Venezuela and asked Venezuela to recall its emissary. Panama is keeping its embassy in Caracas open with a skeleton staff. (The Washington Post: https://www.washingtonpost.com/world/the_americas/panama-weighs-further-measures-in-fight-with-venezuela/2018/04/09/86c883de-3c55-11e8-955b-7d2e19b79966_story.html; The New York Times: https://www.nytimes.com/aponline/2018/04/09/world/americas/ap-lt-panama-venezuela.html)

 

St Lucia PM worried about ongoing situation in Venezuela

The St Lucia government on Monday said it remains 'extremely concerned' about the ongoing political and economic situation in Venezuela after Trinidad and Tobago reported that a number of Venezuelans were entering the oil-rich twin island republic illegally and seeking asylum. “Trinidad, Colombia, the rest of Latin America, have for the past couple of years been feeling the impact. Thousands of people, if not millions of people are migrating from Venezuela and as the situation continues to worsen, this becomes even a greater threat to the region and I am very concerned as to the impact here in St Lucia,” Prime Minister Allen Chastanet told reporters. The Acting Chief Immigration Officer in Trinidad and Tobago, Charmaine Gandhi-Andrews, last week told a select Joint Committee of Parliament that an estimated 2,000 Venezuelans have applied for asylum there in recent months. Chastanet told reporters that ever since his ruling United Workers Party (UWP) came into office over a year ago, security has remained the major priority for the island particularly as it relates to the ongoing situation in Venezuela. He said that criminals appear to be doing what they want, and people were using Venezuela as a transshipment point for drugs from Colombia into Venezuela and the Caribbean. Chastanet, who has long been a critic of the situation in Caracas, said that human rights were also being affected and that some were living in denial and pretending it is propaganda to suggest that there is a problem in Venezuela. (Jamaica Observer: http://www.jamaicaobserver.com/latestnews/St_Lucia_PM_worried_about_ongoing_situation_in_Venezuela)

 

Sen. Dick Durbin meets American hostage, Dictator Maduro in Venezuela

U.S. Senate Minority Whip Sen. Dick Durbin (D-IL) has announced he is “heartbroken” after visiting the socialist state of Venezuela, currently embroiled in the worst political, economic, and humanitarian crisis in its history. In a statement on Monday, Durbin’s office confirmed that he “met with President Nicolás Maduro, members of the opposition, the President of the National Assembly, the Ministers of Health and Nutrition, business leaders, civil society groups, doctors, and humanitarian organizations.” Durbin said in a statement after his visit: “I traveled to Caracas to better understand the conditions faced by Venezuelans and to urge President Maduro to adhere to basic democratic norms, particularly regarding the dubious snap election now scheduled for May … I pointed out that there is bipartisan agreement in Washington on deeply troubling economic, political, and humanitarian problems in Venezuela,” Durbin said. “I was heartbroken by what I saw and heard, particularly regarding the collapse of the country’s ability to feed and medically care for its people and children.” One other aim of Durbin’s visit was to persuade Maduro to release American prisoner Joshua Holt, who was last year sentenced to two years in prison on false weapon charges. After visiting Holt at his jail in Caracas, Durbin said that he was “distraught and saddened” by the ordeal but remained in good conditions, despite reports of his declining health. Maduro reportedly told Durbin he would “consider” pardoning Holt but made no promises on the matter. “They have been held and are being held for some political purpose either to be part of some trade in the future over some issue,” Durbin said. (Breitbart: http://www.breitbart.com/national-security/2018/04/09/dick-durbin-meets-american-hostage-dictator-maduro-venezuela/)

 

Questions arise about Pete Sessions’ secret trip to Venezuela

Rep. Pete Sessions is facing questions about a previously undisclosed trip the Texas Republican took to Venezuela last week that his office is calling a peace mission. The Associated Press first reported Sessions made a two-day trip and met with Venezuela’s President Nicolas Maduro. Sessions’ spokeswoman Caroline Boothe said it was part of Sessions’ efforts to resolve the conflict in the embattled South American nation. Boothe also said as chairman of the House Rules Committee, Sessions frequently works to ensure other countries are respecting democratic norms. On Friday, Sessions told the Dallas Morning News in an interview he met with both Maduro and members of opposing political parties to promote “dialogue between parties that are trying to make progress.” Sessions also said he paid for the trip out of his own pocket and not with taxpayer dollars. While Sessions’ district is home to oil companies, his team denied his visit was related to the industry. (RollCall: https://www.rollcall.com/news/politics/questions-arise-about-pete-sessions-secret-trip-to-venezuela)

 

OP-ED: Two signs Venezuela's Maduro can't hang on forever

Given the depth and longevity of Venezuela’s political and economic crisis, President Nicolas Maduro, the salsa-loving successor to strongman Hugo Chavez, has clung to power with remarkable tenacity. He may hang on a while longer, but new evidence emerged this week that makes clear why he can’t survive indefinitely. New data from OPEC and the International Energy Agency show the decline in Venezuela’s all-important oil production is gathering speed. This problem will have an increasingly dramatic effect on the government’s cash-flow, especially since a considerable amount of the country’s oil is needed at home. Otherwise, it goes toward paying off loans from other countries, or is sold at a deep discount to its ally Cuba. After purging Rafael Ramirez, former head of state-run oil firm PDVSA, and others a few months ago, Maduro ordered the arrest last week of former Interior Minister Miguel Rodriguez Torres, a former spy chief under Chavez and potential political rival for Maduro. Several military officers have also been arrested. Is Maduro in imminent danger from the ruling elite or the military? From the outside, it’s impossible to know. But purges can sometime create enemies, even where none existed before. In short, the cash cow is wasting away, and the risk of dissent within the elite is on the rise. (AXIOS: https://www.axios.com/two-troubling-signs-for-venezuelas-maduro-1521818128-5c67814a-ce48-4011-89c1-8f18e9c6572e.html)

 

UNHCR calls for increased aid to fleeing Venezuelans

UNHCR, the UN Refugee Agency, working with the Brazilian Government and partners is ramping up the humanitarian response for the growing number of Venezuelans arriving in the north of the country with increasing needs. According to the Government’s latest estimates, more than 800 Venezuelans are entering Brazil each day. As the complex political and socio-economic situation in their country continues to worsen, arriving Venezuelans are in more desperate need of food, shelter and health care. Many also need international protection. UNHCR and the Brazilian Authorities are increasingly concerned by the growing risks faced by those Venezuelans who are living on the streets, including sexual exploitation and violence. To meet shelter needs and mitigate these risks two new shelters in Boa Vista have been opened in the last two weeks. The new shelters can house 500 people each and are nearly at capacity. Priority is given to families with children, pregnant women, elderly people and others with specific needs. UNHCR has recently requested from donors an initial US$ 46 million to implement its regional response plan for Venezuelans in the main host countries, Brazil included. So far, this plan is only 4% funded. We’re calling on the international community for greater support to Brazil which has been generous in its response and needs further support to enhance reception capacities, prevent discrimination against Venezuelans, and ensure peaceful coexistence. (UNCHR: http://www.unhcr.org/en-us/news/briefing/2018/4/5ac72f194/response-stepped-brazil-venezuelan-arrivals-grow.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.