International Trade
Spain's tank, arms
deals with Venezuela prop up Nicolas Maduro
Russia, China and Cuba are not the only ones
propping up the leftist regime of President Nicolas Maduro in Venezuela. Spain,
a NATO ally of the U.S. and important member of the European Union, has been
selling military equipment to Caracas despite an EU arms embargo. Much of the
international community, including 14 Latin American governments, joined the
Trump administration in condemning Maduro’s inauguration for a second six-year
term this month after calling his easy election win fraudulent. Spain’s
response was muted. Analysts said Madrid’s reaction reflected a web of
historical, commercial and political ties that it maintains with the rogue
regime. (The Washington Times: https://www.washingtontimes.com/news/2019/jan/21/pedro-sanchez-venezuela-tank-deal-props-maduro/)
TORINO claims 27.6%
increase in Venezuelan exports
TORINO Economics has updated its import and
export data, showing a recovery in both fields during October. It shows
sales at US$ 2.8 billion in exports, a 7% increase for October, and 27.6% more
than last year, indicating that price increases are compensating dropping crude
oil production. Exports were 58% lower over the first 10 months of 2018 than in
2012, mainly oil and derivates. More in Spanish: (El Universal; http://www.eluniversal.com/economia/30795/torino-revelo-un-aumento-en-276-en-las-exportaciones)
Oil & Energy
U.S. refiners scramble as White House eyes
Venezuela sanctions
U.S. refiners are bidding up prices for scarce
types of crude oil needed for their most sophisticated plants as the United
States reconsiders harsher sanctions on Venezuela that could further reduce
imports of the country’s oil. Trump administration officials in recent days met
with U.S. oil company executives to lay out potential actions in response to
the Jan. 10 inauguration of Venezuelan President Nicolas Maduro in an election
it considered illegitimate. Among other steps, U.S. officials have recognized
the opposition-run Venezuelan congress as the only legitimately elected
authority. But the proposals that would most affect the energy industry involve
banning U.S. exports of refined products to Venezuela or limiting oil imports -
a move that, until now, the White House has not taken even after sanctioning
individuals and barring access to U.S. banks. (Reuters, https://www.reuters.com/article/us-usa-refineries-venezuela/u-s-refiners-scramble-as-white-house-eyes-venezuela-sanctions-idUSKCN1PB2ZX)
Economy & Finance
Venezuela gold holdings in Bank of England soar
on Deutsche deal
Venezuela’s gold holdings in the Bank of
England have jumped after it closed out a gold swap deal with Deutsche Bank,
according to two sources, as Britain remains reluctant to release gold held for
the troubled nation. The government of Nicolas Maduro has since last year been
seeking to repatriate about US$ 550 million in gold from the Bank of England on
fears it could be caught up in international sanctions on the country. Its
holdings at the bank more than doubled in December to 31 tons, or around US$ 1.3
billion, after Venezuela returned funds it had borrowed from Deutsche Bank AG through
a financing arrangement that uses gold as collateral, known as a swap, one of
the sources said. Under the deal struck with Deutsche Bank in 2015, Venezuela
put up 17 tons of gold in exchange for a loan, according to one of the sources
who asked not to be identified because they are not authorized to speak
publicly about the issue. (Reuters, https://www.reuters.com/article/us-venezuela-gold/venezuela-gold-holdings-in-bank-of-england-soar-on-deutsche-deal-sources-idUSKCN1PF1Z8)
US$ 20 billion are needed to recover Venezuela’s
industrial capacity
Juan Pablo Olalquiaga, President of Venezuela’s
National Council of Industries (CONINDUSTRIA) presented a industrial recovery plan
to National Assembly President Juan Guaidó, which calls for an investment of
US$ 20 billion to recover the nation’s industrial capacity, including around US$
12 billion through tax credits to match industry’s debt to foreign suppliers.
More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/economia/olalquiaga-reactivar-la-industria-requiere-de-20-mil-millones; El Universal, http://www.eluniversal.com/politica/30958/presidente-de-conindustria-no-reconoce-a-nicolas-maduro)
Venezuela office of
Norton Rose taken over by Maduro regime lawyers Dentons
Dentons, the largest law firm in the world, is
absorbing Despacho de Abogados miembros de Dentons, S.C. -- formerly the
Venezuela practice of Norton Rose Fulbright (and Macleod Dixon before that) as
the law firm gears up to defend Venezuela against over US$ 65 billion in
defaulted bondholder claims. Despacho de Abogados miembros de Dentons, S.C., is
strong in the key practice areas of Energy and Natural Resources, Corporate,
Labor and Employment, Litigation and Dispute Resolution, Banking and Finance,
Tax and Public Law. It could provide robust synergies with Dentons’ strengths
in each of these areas. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2473657&CategoryId=10717)
Politics and International Affairs
Country on brink as
failed military coup sparks riots in Caracas
Venezuela plunged deeper into turmoil Monday as
security forces put down a pre-dawn uprising by national guardsmen that
triggered violent street protests, and the Maduro Supreme Court moved to
undercut the opposition-controlled congress’ defiant new leadership. Venezuela’s armed forces quelled a brief
uprising at a military stockade, authorities said Monday, prompting protests in
a poor Caracas enclave and heightening tensions ahead of antigovernment
demonstrations planned for later this week. Twenty-seven members of Venezuela's
National Guard have been arrested after they allegedly revolted against the
government of President Nicolás Maduro, the defense ministry said. Videos
posted on social media showed the officers calling for the removal from office
of President Maduro. The men reportedly seized weapons from a National Guard
command post in the Cotiza area of the capital, Caracas. The ministry of defense
said a "small group" of National
Guard members had stolen weapons from a security post in the Petare neighborhood
of Caracas and taken four officers hostage before making their way to Cotiza in
the early hours of Monday. A video sent to an opposition Twitter account shows
a man in uniform saying he is acting "on
behalf of the Venezuelan people" and encouraging Venezuelans to take
to the streets in protest at the government. It is not clear whether they were
overpowered or handed themselves in to the authorities. Anti-government protests
erupted in the neighborhood where the alleged rebellion took place. Footage shows
residents and security forces clashing in the area. The National Guard fired
tear gas at residents. When government security forces surrounded the outpost,
several dozen residents barricaded streets and set fire to a car and piles of
rubbish as they chanted “don’t hand
yourself in”. The residents complain about a lack of water and shout "we want Nicolás to go" as the
security forces try to disperse them with tear gas. The new leader of the
opposition-controlled National Assembly, Juan Guaidó, has called on those
critical of the government to resume their protests once again and has called
for anti-government marches to be held on Wednesday. Ahead of the news of
the rebellion, parliament chief Juan Guaido urged the military leaders to break
ranks with Maduro. "We are not
asking you to mount a coup. We are not asking you to shoot," Guaido
said in an online video. "On the
contrary, we are asking you not to shoot at us, but rather to defend together
with us the right of our people to be heard." The parliament also
offered amnesty to the members of the military and state officials if they
abandoned Maduro. Guaido tweeted that Monday's events are a reflection "of the generalized feelings within the Armed
Forces." "The National
Assembly is committed to bring forward all the guarantees for those members of
the Armed Forces who actively help restore the Constitution," Guaido
tweeted. BBC: https://www.bbc.com/news/world-latin-america-46945690;
DW: https://www.dw.com/en/venezuela-captures-troops-rebelling-in-caracas/a-47173723;
The Wall Street Journal: https://www.wsj.com/articles/venezuela-says-it-foiled-military-uprising-11548105608;
ABC News: https://abcnews.go.com/International/wireStory/signs-fraying-military-support-venezuela-president-60529693;
CNN: https://edition.cnn.com/2019/01/21/americas/venezuelan-government-military-uprising/index.html;
Daily Express: https://www.express.co.uk/news/world/1076157/venezuela-news-military-coup-caracas-nicolas-maduro;
VOA: https://www.voanews.com/a/venezuela-claims-to-foil-revolt-by-national-guardsmen-/4752762.html;
The Star: https://www.thestar.com/news/world/americas/2019/01/21/venezuela-quells-soldiers-revolt-top-court-blasts-congress.html;
Reuters, https://www.reuters.com/article/us-venezuela-politics/venezuela-arrests-rogue-officers-after-military-revolt-in-caracas-idUSKCN1PF129;
Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2473656&CategoryId=10717;
Bloomberg, https://www.bloomberg.com/news/articles/2019-01-21/venezuela-detains-rebel-guardsmen-sparking-protests-in-caracas)
On the anniversary of
a coup, desperate Venezuelans demand change
If Venezuela’s opposition was looking for a
provocative day to hold a protest, they couldn’t have done much better than
Wednesday. Jan. 23 marks the 61st anniversary of the military uprising that
toppled dictator Gen. Marcos Pérez Jiménez. And while history might not repeat
itself this week, there are those who believe that Wednesday’s protests could
be a turning point for the presidency of Nicolás Maduro. Since assuming the
head of the National Assembly this month, 35-year-old opposition leader Juan
Guaidó has been leading rallies nationwide to build support for Wednesday’s
march. And the country has been responding. Juan Guaidó, the president of
Venezuela’s National Assembly, has been holding rallies across the country to
build support for the national march on Jan. 23. Maduro is intensely aware of
the threat posed by the National Assembly and its new leader. On Jan. 13 Guaidó
was detained on his way to a rally, only to be released — with handcuff welts
still on his wrists — an hour later. And on Monday the Supreme Court, packed
with Maduro cronies, ruled that Guaidó and the rest of the congressional
leadership were occupying their positions illegally and that all the decisions
congress had taken since Jan. 5 were null. Guaidó brushed off the ruling, but
the decision could set the stage for a showdown. But the government will also
have to tread carefully in dealing with the march: The street protests that
broke out in support of the soldiers that rebelled on Monday should worry the
government – and are likely to embolden those in the military who are unhappy.
The Observatory for Social Conflict, which tracks protests, said there were at least
30 demonstrations Monday night in the capital alone, many in areas considered
government strongholds. The National Assembly has also been trying to drive a
wedge between Maduro and his commanders. Earlier this month, it passed a bill
granting amnesty to military officials who help restore the constitutional
order. (The Miami Herald: https://www.miamiherald.com/news/nation-world/world/americas/venezuela/article224892830.html)
Pence officially backs
Venezuelan opposition, condemns President Maduro
US Vice President Mike Pence has issued a
message to Venezuelans, condemning their “dictator”
leader Nicolas Maduro and declaring official U.S. support for the country's
legislature and its opposition leader, Juan Guaido. “On behalf of President Donald Trump and all the American people, let me
express the unwavering support of the United States as you, the people of
Venezuela, raise your voices in a call for freedom,” Pence said in a
recorded video message. “Nicolas Maduro
is a dictator with no legitimate claim to power. He has never won the
presidency in a free and fair election and has maintained his grip on power by
imprisoning anyone who dares to oppose him.” Maduro was sworn into another
term as Venezuelan president this month, although his government is considered
largely “illegitimate” by much of the
international community, who deem the elections held last year to be a sham. Pence
instead declared U.S backing for National Assembly leader Guaido, who he called
the “last vestige of democracy.” “As you make your voices heard tomorrow, on
behalf of the American people, we say to all the good people of Venezuela:
estamos con ustedes,” Pence continued in the message, peppered with Spanish
phrases. “We are with you, we stand with
you, and we will stay with you until democracy is restored and you reclaim your
birthright of libertad.” (Fox News: https://www.foxnews.com/world/pence-issues-official-backing-of-venezuelan-opposition-leader-condemns-maduro)
European Union
representatives ask Maduro for new “free”
elections in Venezuela
European Union chiefs of mission in Venezuela
have called for “new and free elections”
here, “in line with international standards”. They stated the EU’s position
during a meeting with Nicolas Maduro in the presidential palace here last Friday,
and with the leaders of the National Assembly, on Saturday. They stressed the
EU’s position of “respect for democracy,
the rule of law and basic freedoms”; and called for “recognition and respect for the authority and rights of the National
Assembly, including immunity for its members”, as well as “freeing all political prisoners” and “urgently facing the pressing needs of the
population”. The announcement was made through the office of the EU’s
Foreign Affairs Commissioner Federica Mogherini. For his part, Maduro proposed to the European Union to establish a
cooperation agenda aimed at consolidating relations effectively and
strengthening political, economic and social ties; and urged the European
authorities to maintain a position of greater respect and balance on the political,
economic and social reality of Venezuela. (AVN, http://www.avn.info.ve/contenido/maduro-proposes-eu-set-agenda-political-and-economic-cooperation);
and more in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/internacional/embajadores-de-ue-llaman-a-celebrar-nuevas-elecciones-libres-en-venezuela; El Universal, http://www.eluniversal.com/politica/30966/union-europea-reitera-llamado-a-elecciones-libres-en-venezuela)
National Assembly
officially asks UN for humanitarian aid
Venezuela’s legislature has officially asked
the United Nations for assistance in facing this nation’s health and food crisis.
Congressman José Trujillo, who heads the National Assembly’s Social Development
Committee made the announcement, blaming the communist system for the crisis.
He added that they have also written to UN Human Rights High Commissioner Michelle
Bachelet, asking her to come to Venezuela and witness the humanitarian crisis.
More in Spanish: (El Universal, http://www.eluniversal.com/politica/30760/asamblea-nacional-solicito-oficialmente-a-onu-ayuda-humanitaria)
National Assembly
names special representative to the OAS
Venezuela’s National Assembly has named its own
representative to the Organization of American States (OAS) to coordinate efforts
to reestablish democracy and constitutional rule with the international
community. It named an experienced former legislator and constitutional lawyer,
Gustavo Tarre, as its representative to the Hemispheric organization. The legislature
also annulled Nicolás Maduro’s decision to withdraw from the OAS. More in
Spanish: (El Nuevo Herald: https://www.elnuevoherald.com/noticias/mundo/america-latina/venezuela-es/article224906045.html)
Curacao seeks aid from the Netherlands in
dealing with Venezuelan migration
The government of Curacao
has asked for help from The Netherlands in dealing with the impact of migrants
who arrive by sea from Venezuela. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/internacional/curazao-pide-ayuda-a-los-paises-bajos-por-la-inmigracion-venezolana)
Ecuador to tighten controls on Venezuelan
immigrants after murder
Ecuador is setting up new units to check
Venezuelan immigrants’ legal status and may tighten entry requirements after a
Venezuelan man murdered his pregnant Ecuadorian girlfriend, President Lenin
Moreno said on Sunday. The killing in the northern city of Ibarra is the first
reported murder perpetrated by a Venezuelan immigrant in Ecuador since hundreds
of thousands have arrived there after fleeing an economic crisis in Venezuela. “I have ordered the immediate setting up of
units to control Venezuelan immigrants’ legal status in the streets, in the
workplace, and at the border,” Moreno said on Twitter. The government, he
added, may create a new “special permit” for Venezuelans to enter the country.
He did not give further details about the units or how they will operate. The
Venezuelan man held his victim hostage on a busy street for about an hour on
Saturday evening before stabbing her to death. He was then arrested by police. “Without generalizing, but with a firm hand,
today we must differentiate between Venezuelans who are fleeing Maduro’s
government and others who take advantage of the situation to commit crimes,”
Vice President Otto Sonnenholzner said, referring to Venezuela’s socialist
President Nicolas Maduro. The Maduro
regime has demanded that Ecuador’s government “respect the human rights of Venezuelans living in this country and that stop the incitement to xenophobia
and persecution”. (Reuters, https://www.reuters.com/article/us-ecuador-venezuela/ecuador-to-tighten-controls-on-venezuelan-immigrants-after-murder-idUSKCN1PE0X8;
https://www.reuters.com/article/us-ecuador-venezuela/ecuador-to-demand-venezuelan-migrants-criminal-records-after-murder-idUSKCN1PF20E;
AVN, http://www.avn.info.ve/contenido/venezuela-demands-government-ecuador-cease-incitement-xenophobia)
OP-ED: Could the
Socialists United of Venezuela finally be falling apart?
Juan Guaido’ s National Assembly is the equivalent
of the U.S. Congress. Only that body of government was stripped of its powers
by PSUV roughly two years ago to form a so-called Constituent Assembly of
leftist PSUV yes men and yes women who continue to run Venezuela into the
ground. Recent events provide further evidence of internal frictions within the
armed forces and of the fragility of the PSUV government. There is an
increasing possibility of regime change, although who will replace Maduro
remains unclear. It could be another member of PSUV, trying to preserve the
legacy of the party created by the late Hugo Chavez. There’s been a qualitative
change in the antigovernment protests. The protests are not being led by some
middle-class bourgeoisie with summer homes on Margarita Island and in Miami.
It’s happening in the low-income neighborhoods of Caracas where most people survive
on government jobs—like those in the security forces—or on some form of social
welfare program. The poor are PSUV’s base. They are starting to see the light. Meanwhile,
serious crackdowns on opposition leaders leading to jail time, or the police busting
heads at tomorrow’s scheduled protest, will only embolden Washington against
PSUV. His vocal opposition against Maduro has led to more participation at town
halls and other events across the country, which suggests tomorrow’s protest
could be the biggest one since the anti-Maduro protests from September 2016 to
April 2017. (FORBES: https://www.forbes.com/sites/kenrapoza/2019/01/22/could-the-socialists-united-of-venezuela-finally-be-falling-apart/#7c98c343389d)
OP-ED: Amid mounting
coup threats in Venezuela, Maduro begs Trump for dialog
In the face of threats from sections of the
military, upon which his government depends, sanctions and ever-escalating
pressure from Washington and its Latin American allies, on the one hand, and a
threat of social upheaval from the Venezuela working class, on the other,
President Maduro has directed a call to Donald Trump to reach some form of
accommodation. Maduro used an interview with a Fox News reporter to deliver the
message, which appealed to Trump for a “frank,
direct, face-to-face dialog.” Such a meeting, he insisted, would show Trump
that “we are people with whom you can
talk, negotiate, understand and agree.” This pathetic plea only underscores
the character of the Maduro government, which for all its “Bolivarian” and “21st Century
Socialist” rhetoric is a capitalist regime that ruthlessly defends private
property and the profit interests of the financiers, corrupt government
officials and military commanders that are its most important constituencies. The
only way out of Venezuela’s desperate crisis lies in the independent
mobilization of the Venezuelan working class in opposition to the government,
the ruling PSUV and their trade union stooges, as well as to the right-wing
opposition, whose rise to power through a military coup would signal a
bloodbath against the country’s workers and impoverished masses. (World Socialist
Web Site: https://www.wsws.org/en/articles/2019/01/22/vene-j22.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.
