International Trade
US$ 260 million reported in alcoholic beverage
exports from Venezuela
Luis Enrique Cardenas, President of the Venezuelan
Alcoholic Industry Chamber (CIVEA) reports that close to US$ 260 in alcoholic beverages
were exported from Venezuela by the private sector during 2019, particularly to
the European Union. (El
Universal; https://www.eluniversal.com/economia/59929/exportan-260-millones-en-bebidas-alcoholicas)
Oil & Energy
U.S. extends CHEVRON Venezuela sanction waiver
The United States Treasury Department granted CHEVRON
another three-month sanction waiver to continue operating in Venezuela, with the
expiry date of this latest extension set for April 22. The Treasury Department
has been granting Chevron three-month extensions of its sanction waiver for a
while now, with the one it announced last October reportedly being a topic of
heated discussion in the Trump administration in light of Washington’s attempts
to stifle all oil revenues going into the coffers of the Maduro government. Some,
however, notably Secretary of State Mike Pompeo, argued that the presence of a
U.S. company in Venezuela would help to quicken the recovery of its oil
industry when—and if—the government changes. Reuters noted that CHEVRON
reported losses of US$ 104 million related to its business in Venezuela for the
first nine months of the year. Yet if the Treasury Department stops granting it
sanction waivers, Chevron would have to leave the country, which would cost it US$
2.7 billion in assets. Besides CHEVRON, four oilfield services companies have
been granted sanction waivers to continue doing business in Venezuela. However,
SCHLUMBERGER, BAKER HUGHES, HALLIBURTON and WEATHERFORD have wound down their
operations there to virtually nothing. (Oil Price: https://oilprice.com/Latest-Energy-News/World-News/US-Extends-Chevron-Venezuela-Sanction-Waiver.html; The Houston Chronicle: https://www.houstonchronicle.com/business/article/American-energy-companies-to-remain-in-Venezuela-14990649.php; Reuters, https://www.reuters.com/article/us-venezuela-chevron/u-s-grants-chevron-another-three-months-for-venezuela-operations-idUSKBN1ZH0DH)
Oil buyers steer clear of Venezuela over Petro
payments
Buyers of Venezuelan crude oil have stopped
dealing with this nation after officials started demanding payment of port fees
in the country’s controversial Petro cryptocurrency. Sources told media outlet
World Oil that exports of at least a million barrels of oil were put on hold
after the government announced the fees must be paid in Petro tokens. Buyers
were reportedly worried that paying in Petro may violate US sanctions. (Coin
Rivet: https://coinrivet.com/es/oil-buyers-steer-clear-of-venezuela-over-petro-payments/)
Economy & Finance
Venezuela Petro dumped at a 50% discount at
LocalBitcoins
Venezuelans are dumping the government-issued
Petro, a crypto coin backed by a barrel of Oil, for half its value (US$ 30) at
peer-to-peer exchanges like LocalBitcoins. The situation has worsened over the
past few weeks as the government has scrambled to tame the USD/Bolivars rate
but shutting down avenues for liquidation. At the time of writing, 50k Bolivars
equals to $1 while 1 Petro (PRT) is pegged at US$ 60. The Maduro-led regime
asserts that each coin is more than a medium of value but a crypto asset, like
Bitcoin, in an economy stricken by economic turmoil and world’s leading
hyperinflation. According to sources in Venezuela, the government airdropped
0.5 Petro to government workers and pensioners claiming that their effort
reached 6 million people. As a crypto asset, the objective of the government
was to probably avail a shield for its citizens. However, it soon emerged that
people used the same airdropped Petro to buy ordinary stuff through
Point-of-Sale and government-supported Petro Wallets. Both avenues were shut,
paving the way for people to liquidate at peer-to-peer exchanges. At
LocalBitcoins, the value of each Petro was consequently priced at US$ 30, 50%
of what the government had set. (Coin Gape: https://coingape.com/venezuela-petro-dumped-at-a-50-discount-in-localbitcoins/)
Maduro opens international crypto casino
Nicolas Maduro has authorized the opening of an
international casino at a luxury hotel in Caracas where bets must be placed in Petros,
the country’s national oil-backed digital currency. Several cryptocurrencies
and fiat currencies can be exchanged into Petros to wager in the casino. Maduro
announced Friday that he has authorized the opening of a casino at the Humboldt
Hotel in Caracas where bets must be placed in Petros. The hotel, located on the
peak of El Avila hill, was reopened in 2018. Gamblers must acquire PTR to
participate. Following Friday’s casino announcement, the media started
reporting that Venezuela may be warming up to casinos again. The Humboldt
Hotel’s casino is expected to begin operations in the coming months, but Maduro
did not reveal whether he plans to open more casinos. (Bitcoin: https://news.bitcoin.com/maduro-opens-crypto-casino-venezuela/)
Politics and International Affairs
Pompeo vows US support as he meets Venezuela's Guaidó
in Colombia
Venezuela's acting President Juan Guaidó has
met with US Secretary of State Mike Pompeo in Colombia's capital, as he tries
to shore up international support amid a power struggle with Nicolas Maduro.
- Venezuela is a "failed
state", Pompeo said on Monday, after meeting Guaidó on the
sidelines of a three-day counterterrorism ministerial meeting in Bogota. "I
would fully expect there will be further action that the US would take to continue
to support President Guaidó and the Venezuelan people," Pompeo
told journalists. "We do not talk about particular sanctions, but
everyone can fully expect that the US is not done," Pompeo
warned, without specifying what action Washington will take.
- “I’ve heard this idea that
we’ve underestimated Maduro. What’s been underestimated is the desire for
freedom that rests in the hearts of the Venezuelan people,” he said. “We
are collectively — the Europeans, the other countries in South America,
the United States are determined to deliver that outcome for the people of
Venezuela.”
- "The world must
continue to support the Venezuelan people's effort to restore their
democracy and put an end to Maduro's tyranny which harms millions of
Venezuelans and has an impact on Colombia and indeed on the entire region",
he added. "I want you to know that your president is a great
leader who wants to take your country in the right direction — the
direction of freedom, democracy, to restore economic prosperity,"
Pompeo said in remarks directed at the Venezuelan people.
- From Colombia, Guaidó is set to
travel on to London, Brussels and Davos, Switzerland, to attend the World
Economic Forum. Guaidó would not
confirm whether he will meet US President Donald Trump in Davos.
- Separately, Colombia and the US
accused Maduro of harboring armed groups such as Colombia's Marxist-led
National Liberation Army rebels and of having connections to everyone from
drug traffickers to Lebanon's HEZBOLLAH movement. “After today’s event
I think the world has it very clear that there is a dictatorship that
finances terrorism,” Guaidó said.
- Pompeo blasted Maduro as an
ally to terrorist groups that in contrast to other nations in Latin America
is providing “a home” to Hezbollah. “This is unacceptable,” he
said."[Maduro is] now running an operation that looks more like a
cartel than anything else that one could describe. This isn't good for
Venezuela, it's not good for the countries that are around Venezuela,"
Pompeo said.
- Pompeo kicked off the counter-terrorism
conference at the General Santander Police Academy in Bogota – where 22
cadets were killed in a bombing last year – by decrying Maduro as an ally
to terrorist groups including the National Liberation Army, the Colombian
rebel group authorities say plotted the attack. “These groups must lay
down their arms and the Maduro regime must be held to account for its
support of them,” Pompeo said.
- The statements could open the
possibility of the US including Venezuela in the list of states that support
or finance terrorism.
- Maduro allies including
Diosdado Cabello, head of the powerful National Constitutional Assembly,
brushed off Guaidó’s international tour, dismissing the Bogota event as “a
conference of terrorists.” “It doesn’t occupy any of our time,
because in truth, it’s insignificant,” Cabello said.
- Guaidó told reporters the fight
for democracy "finds alternatives, different pathways, and
reinforced mechanisms." He said getting rid of Maduro is a "long-term
strategy." "The dictators won't want to give up the power
they've taken. ... We're much more like Syria than like Cuba ... in terms
of migration, access to services, the inflation. There are no vaccines for
our children. They are dying because of lack of food," Guaidó
said.
Colombia rolls out the red carpet for Guaidó
“We
are honored by your presence,” Colombian President Iván Duque told Guaidó
during opening remarks in a stately reception. “You will always have a
friend in Colombia.” Venezuela’s pro-Maduro Supreme Court has barred Guaidó
from leaving the nation it’s unknown whether authorities will let him back
again this time. “That risk always exists in Venezuela,” Guaidó said to
a bevy of journalists as he headed into a meeting with Pompeo. Duque shot back
at critics who have questioned Guaidó’s strength Monday, characterizing his
efforts as “brave” in facing off against Maduro. “Maybe many speculate,
‘Why hasn’t Guaidó put an end to the dictatorship?’” Duque said. “This
can’t be a discussion about individual capabilities. We know your bravery and
that confronting a dictatorship with no limits is a task that goes beyond
heroism.” (PBS: https://www.pbs.org/newshour/world/Guaidó-meets-pompeo-condemns-venezuela-for-links-to-terrorism
Guaidó to meet top EU diplomat in Brussels
Opposition leader Juan Guaidó, recognized as
Venezuela's president by more than 50 countries including the United States and
most European Union members, will come to Brussels on Wednesday to hold talks
with the European Union's foreign policy chief Josep Borrell, Borrell told a
news conference. (The New York Times: https://www.nytimes.com/reuters/2020/01/20/world/americas/20reuters-venezuela-politics-eu.html; Reuters, https://www.reuters.com/article/us-venezuela-politics-eu/venezuelas-Guaidó-to-meet-top-eu-diplomat-in-brussels-idUSKBN1ZJ1RX)
Guaidó to attend Davos forum
Venezuela’s opposition leader and acting
president, Juan Guaidó will attend this week’s World Economic Forum in DAVOS,
lawmaker Stalin Gonzalez told AFP on Monday. Guaidó is currently in Colombia, but
Gonzalez, a Guaidó ally, said the National Assembly speaker will then head to
Switzerland for the annual economic meeting that opens on Tuesday. Despite
being banned from leaving the country by the regime of Nicolas Maduro, Guaidó
surfaced in Bogota on Sunday, where Colombian President Ivan Duque welcomed him
with full presidential honors. (The Japan Times: https://www.japantimes.co.jp/news/2020/01/21/business/venezuela-opposition-leader-juan-Guaidó-attend-davos-forum/#.XibkAMhKi8U)
European Parliament reaffirms support for Juan
Guaidó, condemns Maduro coup attempt
The European Parliament has condemned the recent
attempted coup to prevent Juan Guaidó from being re-elected President of the
Venezuelan National Assembly. In a resolution adopted on Wednesday, the
European Parliament strongly condemns the attempt by Nicolas Maduro’s regime to
install pro-government candidate Luis Parra as new Chairman of the Venezuelan
National Assembly on 5 January of this year. In the resolution, the European
Parliament reaffirms their support for Juan Guaidó as the legitimate President
of the National Assembly and interim President of Venezuela. MEPs deplore the
recent grave violations, which are incompatible with legitimate election
processes. The National Assembly of Venezuela is the only legitimately elected
democratic body in the country, and its powers need to be respected, says the
text. The European Parliament also recalls that the EU stands ready to support
a genuine process towards a peaceful and democratic solution to the Venezuelan
political crisis. The resolution calls on EU Foreign Policy Chief Josep Borrell
to step up the European Union’s response to restore democracy in the country,
including through targeted sanctions against individuals responsible for human
rights violations, but also by extending these sanctions to their family
members. The text was adopted by 471 votes to 101, with 103 abstentions. (European
Parliament: https://www.europarl.europa.eu/news/en/press-room/20200110IPR70010/venezuelan-crisis-meps-reaffirm-their-support-for-juan-Guaidó)
Guatemala's new president cuts ties with
Venezuela, as promised
Guatemala’s new President Alejandro Giammattei
cut diplomatic ties with the regime of Nicolas Maduro on Thursday and ordered
the closure of its embassy in Caracas. The conservative Giammattei, who took
office on Tuesday, had already indicated he would cut ties upon assuming power.
Maduro’s foreign minister Jorge Rodriguez, in a response on Twitter, accused
Giammattei of bowing down to the administration of U.S. President Donald Trump.
(Reuters: https://www.reuters.com/article/us-guatemala-politics-venezuela/guatemalas-new-president-cuts-ties-with-venezuela-as-promised-idUSKBN1ZF2SB)
Maduro says he’s still in control of Venezuela,
ready for direct talks with the United States
Nicolás Maduro cast himself as the wily
survivor of a dramatic, year-long struggle by the opposition at home and its
allies in Washington to unseat him and said it’s now time for direct
negotiations with the United States to end the political stalemate.
- He suggested a bonanza could be
waiting for U.S. oil companies in this country should President Trump lift
sanctions and press the reset button on U.S.-Venezuelan relations.
- Yet if anything, his words
revealed the vast gulf that still exists between his authoritarian
government and the opposition and U.S. officials who call him a dictator.
His positions on key issues suggested no quick fix to the brutal
humanitarian crisis that has led millions to flee poverty and hunger in
this troubled socialist state. Speaking
in the ornate Miraflores presidential palace, Maduro did not display such
willingness.
- He called any new presidential
vote still years away. He also denied the assertions of U.S. and European
diplomats and opposition negotiators that his government offered the
opposition a deal including new presidential elections during talks
brokered by Norway last year before they collapsed in the fall. He doubled
down on his pledge to hold legislative elections this year — a vote his
opponents insist he would use as a tool to further consolidate power. Maduro
said he remained willing to sit down with Guaidó — but he seemed to
dismiss the opposition’s key demand: that he exit in favor of a
transitional government that would renovate the Supreme Court and national
election councils to call new elections.
- Maduro seemed to dismiss his
growing international isolation. “Do you want me to tell you the truth?”
he asked, leaning in. “I don’t care even a little bit about what Europe
does, or about what the U.S. does. We do not care at all. We only care
about what we do … No matter how many thousand sanctions, they won’t stop
us, or Venezuela.”
- Maduro repeatedly asserted his
view that Trump had been misled by his policymakers, and he seemed baffled
that Trump had courted North Korea’s Kim Jong Un but not him. “I
believe Mike Pompeo has failed in Venezuela and is responsible for Donald
Trump’s failure in his policy toward our country,” Maduro said. “I
think Pompeo lives in a fantasy. He’s not a man with his feet on earth. I
think Trump has had terrible advisers on Venezuela. John Bolton, Mike
Pompeo, Elliott Abrams have caused him to have a wrong vision.”
U.S. officials have been considering more
provocative steps to oust Maduro, including a naval blockade of Venezuelan oil
destined for Cuba. Maduro said such a step would be “illegal,” but
stopped short of calling it an act of war. Still, Maduro said significant
changes could be in the offing if Washington opened a direct channel with him.
(The Washington Post: https://www.washingtonpost.com/world/the_americas/maduro-says-hes-still-in-control-of-venezuela-ready-for-direct-talks-with-the-united-states/2020/01/18/7f609a6e-38a7-11ea-a1ff-c48c1d59a4a1_story.html)
Maduro’s foreign minister in Iran, starts 3-day
visit
The Maduro regime’s foreign minister Jorge
Arreaza began a three-day visit to Iran and was received by his Iranian
counterpart Mohammad Javad Zarif, Venezuela's foreign ministry reported on its
@CancilleriaVE Twitter account on 20 January. The Venezuelan ministry posted
photos of Arreaza and Zarif shaking hands and embracing, with the words: "To
start the work agenda that will be developed in Tehran, the foreign minister of
the Islamic Republic of Iran, Javad Zarif @JZarif receives the [Venezuelan]
foreign minister Jorge Arreaza @jaarreaza to have a bilateral meeting".
(BN Americas: https://www.bnamericas.com/en/news/venezuela-foreign-minister-in-iran-starts-3-day-visit)
Maduro calls for Cuban ambassador to gain
access to Venezuelan ministries
Nicolas Maduro said on state television that
the Cuban ambassador to Caracas should have access to all the country's
ministries in order to coordinate efforts. “For the Cuban ambassador, the
doors of all ministries should be open for coordination,” TASS quoted
Maduro as saying. He also added that Cuba could “count on Venezuela in
everything.” (Teller Report: http://www.tellerreport.com/news/2020-01-21---maduro-calls-for-cuban-ambassador-to-gain-access-to-venezuelan-ministries-.ByKaINAQWI.html)
Colombia’s leading opposition senator to sue Guaidó
One of Colombia’s leading opposition figures
said he would file criminal charges against Venezuelan opposition leader Juan Guaidó
for claiming he was “financed through Venezuelan corruption money.” During
a surprise visit to Colombia, Guaidó additionally called Senator Gustavo Petro
an “accomplice” of Nicolas Maduro. Petro responded that “I am neither
an accomplice of dictators nor an accomplice of “Los Rastrojos,” a
Colombian drug trafficking organization that allegedly helped Guaidó cross the
border last year. (Colombia
Reports: https://colombiareports.com/venezuelas-opposition-chief-calls-colombias-leading-opposition-senator-accomplice-of-maduro/)
Venezuela attorney added to ICE Most Wanted list
Venezuelan attorney and businessman, Raul
Antonio De La Santisima Trinidad Gorrin Belisario, has been added to the US ICE
Most Wanted list for conspiracy to violate the Foreign Corrupt Practices Act
and several counts of money laundering. The action follows an indictment filed
August 16, 2017, in the Southern District of Florida, Gorrin’s subsequent
escape from justice, and the updated FinCEN advisory of May 3, 2019, regarding
widespread public corruption in Venezuela. The indictment alleges that Gorrin,
50, a Venezuelan citizen with a residence in Miami, Florida, paid millions of
dollars in bribes to two high-level Venezuelan officials to secure the rights
to conduct foreign currency exchange transactions at favorable rates for the
Venezuelan government. Gorrin was last seen in Caracas, Venezuela, and
currently remains at-large. ICE warns the public to not attempt apprehending
the subject. If you have information about the whereabouts of this fugitive,
immediately contact your local U.S. Immigration and Customs Enforcement (ICE)
office or call the national hotline at 1-866-DHS-2-ICE as soon as possible. (News
Americas Now: https://www.newsamericasnow.com/latin-america-news-venezuela-news-usice-wanted/)
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.
