Venezuelan Daily Brief

Published in association with The DVA Group and The Selinger Group, the Venezuelan Daily Brief provides bi-weekly summaries of key news items affecting bulk commodities and the general business environment in Venezuela.

Showing posts with label Gruma. Show all posts
Showing posts with label Gruma. Show all posts

Thursday, January 10, 2019

January 10, 2019


International Trade

Venezuela launches WTO challenge to U.S. sanctions

Venezuela has launched a complaint at the World Trade Organization to challenge U.S. sanctions, saying that a ban on travel by blacklisted individuals and trade restrictions break WTO rules, a WTO filing showed on Tuesday. In the complaint, filed on Dec. 28, Venezuela also cited U.S. rules on sales of gold and discriminatory treatment of Venezuela’s debt and transactions in digital currency as breaches of the WTO rulebook. (CNBC: https://www.cnbc.com/2019/01/08/reuters-america-venezuela-launches-wto-challenge-to-u-s-sanctions.html)

 

Oil & Energy

Venezuela congress slams oil deals with U.S., French companies

Venezuela’s opposition-run congress on Tuesday issued a resolution calling deals between state-run oil company PDVSA and U.S. and French companies announced this week illegal, since they had not been sent to lawmakers for approval. The body said the oilfield deals with France’s Maurel & Prom and little-known U.S. company EREPLA violated article 150 of Venezuela’s constitution, which requires that contracts signed between the state and foreign companies be approved by the National Assembly, as Venezuela’s congress is known. “They are giving concessions that violate the law,” said lawmaker Jorge Millan, mentioning the two contracts. Congress, largely stripped of its power since the opposition took it over in 2016, is unlikely to be able block the deals from going forward. But the rejection could create legal complications under a future government. (Reuters, https://www.reuters.com/article/us-venezuela-oil/venezuela-congress-slams-oil-deals-with-u-s-french-companies-idUSKCN1P22HG)

 

Venezuela plans to remap its offshore oil territory, escalating tension with EXXON

Venezuela will remap its Caribbean oil and gas prospects in a move that could further stoke a century-long border dispute with Guyana and collide with EXXON MOBIL Corp.’s venture in the region, people with knowledge of the plan said. The seismic survey is planned for the coming months and will include an eastern area of Venezuela that borders Guyana. Venezuela has mapped its offshore territory for oil deposits in the past, but some areas remain uncharted. The new survey will also include areas bordering Caribbean islands such as Grenada and Saint Vincent. “More surveys are pending to identify commercially viable options for gas,” said Antero Alvarado, a managing partner at consulting firm Gas Energy Latin America. “Past PDVSA studies ignored identifying gas deposits because the focus was always on oil.’’ Maduro has issued a decree stating Venezuela’s continental shelf is open for oil exploration, although no investment plans have been announced for the area yet. PDVSA’s offshore division produces mainly gas from the western coast in a partnership with Italy’s ENI. It also has several inactive oil and gas projects in the east, near Trinidad and Tobago and Guyana. Three of them are in partnerships with Norway’s EQUINOR ASA, CHEVRON Corp. and France’s TOTAL. (Bloomberg: https://finance.yahoo.com/news/venezuela-plans-remap-offshore-oil-100000274.html)

 

Venezuela claims it can prove EXXON ships entered its waters

The Venezuelan government presented on Tuesday what it described as evidence that vessels belonging to global oil giant EXXONMOBIL entered the nation’s territorial waters last month. Vice President Delcy Rodriguez presented a press conference with audiovisual material in which officers of the Venezuelan navy are heard talking with crews of the oil company’s ships. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2472825&CategoryId=10717; AVN, http://www.avn.info.ve/contenido/venezuela-will-deliver-evidence-illegal-incursion-exxonmobil-ships; Bloomberg, https://www.bloomberg.com/news/articles/2019-01-08/venezuela-is-said-to-map-caribbean-as-tension-with-exxon-grows)

 

Curacao oil refinery resumes work after eight-month stoppage

Curacao’s 335,000-barrel-per-day (bpd) ISLA refinery has resumed work, management of the government-owned facility said on Tuesday, after eight months of paralysis caused by a dispute between its operator, Venezuela’s PDVSA, and U.S. producer CONOCO PHILLIPS. ISLA, which has been looking for a new operator to run the refinery beginning at the end of this year, restarted one of its crude distillation units and its thermal cracker, it said in a statement. The plant suffered a fire early last year and fell idle after CONOCO PHILLIPS brought legal actions against PDVSA over a US$ 2-billion arbitration award linked to the nationalization of CONOCO’s projects in Venezuela. The U.S. company got court orders temporarily seizing PDVSA’s cargoes and terminals across the Caribbean. (Reuters, https://www.reuters.com/article/us-refinery-operations-pdvsa-curacao/curacao-oil-refinery-resumes-work-after-eight-month-stoppage-idUSKCN1P22CI)

 

Mohammed Barkindo: Venezuela continues to be a key country for OPEC

On Tuesday, OPEC secretary, Mohammed Barkindo, held a meeting at the Miraflores Palace with the President of the Bolivarian Republic of Venezuela, Nicolás Maduro, as part of his visit to the country for the inauguration of the President. Thursday, January 10th. In his statements to the media, Barkindo stressed that Venezuela continues to be fundamental in all the efforts promoted by the Organization of Petroleum Exporting Countries (OPEC). (AVN, http://www.avn.info.ve/contenido/mohammed-barkindo-venezuela-continues-be-key-country-opec)

 

Economy & Finance

Maduro era is endurance test as Venezuela's lifelines fall away

President Nicolas Maduro’s second term is officially six years. However, it will endure only as long as Venezuela’s moribund economy allows. He has weathered protests, impeachment drives, an assassination attempt and U.S. sanctions. But as Venezuela’s economic lifelines drop away, his survival now depends on the country’s stamina. In his next term, Maduro must manage to feed a hungry nation, kick-start production at state oil company Petroleos de Venezuela SA and fend off creditors threatening to snatch up assets abroad. He has deepened ties with authoritarian allies such as Russia, China and Turkey, but they have provided only limited support. Maduro shows no sign of hesitation: “Rain, thunder or lightning,” he said this week. “Venezuela will stay on its course.” Calls are growing within the ruling socialist party to dissolve the opposition-led congress, the only elected institution Maduro doesn’t control, and one that has already been defanged. On Tuesday, the politically omnipotent National Constituent Assembly passed a measure that could be the first step to enable its disappearance. The super-body convened by the president also threatened treason investigations against dissident lawmakers. Constituent Assembly President Diosdado Cabello said Tuesday that lawmakers in the threatened national legislature who support the idea should be punished. “Those who are now in the National Assembly are traitors. Several lawmakers turned their backs on the most sacred: respect for sovereignty,” he said. Increasingly, however, it’s the Chavistas against the world. Now the U.S. is even considering designating Venezuela itself as a state sponsor of terrorism. Throughout it all, America has remained the primary buyer of Venezuelan crude. Gregory Weeks, a professor of political science at the University of North Carolina at Charlotte, said that if the U.S. truly wants to isolate Venezuela, it would have to stop buying its oil. “You can say you’re not going to recognize him, but if you’re still trading and buying Venezuela oil, how much does it really matter?” Weeks said. (Bloomberg: https://www.bloomberg.com/news/articles/2019-01-10/maduro-era-is-endurance-test-as-venezuela-s-lifelines-fall-away)

 

Venezuela to collect tax in cryptocurrency - but no Petro?

A decree issued yesterday by Nicolas Maduro’s government states that those conducting business in Venezuela involving either cryptocurrency or foreign fiat money must also pay taxes on that business using cryptocurrency or foreign fiat money, respectively. Exceptions to this stipulation, according to article two, include an exemption for securities traded on the national stock market, and on the “export of goods and services, carried out by bodies or public entities.” The plan to accept cryptos is not fleshed-out yet, however, and currently seems to be only an aspiration of this particular issue of the gazette. Notably, the decree does not mention which particular cryptoassets are usable for paying taxes. There is no mention anywhere in the decree of the country’s national crypto, the Petro, a ERC-20 token issued on the Ethereum network. (Cryptoglobe: https://www.cryptoglobe.com/latest/2019/01/venezuela-to-collect-tax-in-cryptocurrency-but-no-petro/)

 

Mexico tortilla giant GRUMA sues Venezuela for US$ 525 million over 2010 expropriation

The world's leading tortilla maker GRUMA's Spanish subsidiaries Valores Mundiales, S.L. and Consorcio Andino, S.L. have filed a US $525 million lawsuit in U.S. Federal District Court in Washington, D.C. against Venezuela over the expropriation of its Venezuela subsidiaries. The lawsuit is to enforce a US$ 525 million award made against Venezuela for the expropriation of GRUMA's food businesses in Venezuela. On July 25, 2017, an arbitral tribunal brought before the World Bank's International Center for the Settlement of Investment Disputes (ICSID) ruled that Venezuela must pay Valores Mundiales, S.L. and Consorcio Andino, S.L. US$ 430.4 million in damages, plus compound interest at LIBOR + 2% from January 22, 2013 and until the effective date of payment of the Award, and more than US$ 5.9 million in legal expenses and costs incurred by GRUMA in the course of the arbitration, meaning that Venezuela owes some US$ 525 million to GRUMA. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2472777&CategoryId=10717)

 

Politics and International Affairs

Venezuela's neighbors turn up heat as Nicolás Maduro begins second term

In a televised new year’s message to his atrophying nation, Nicolás Maduro struck an upbeat tone. “Victory awaits us! The future awaits us! And everything will be better!” Venezuela’s embattled president insisted, declaring 2019 “the year of fresh starts”. But the sandbags and rifle-toting troops that now encircle the Miraflores presidential palace in Caracas suggest far less confidence about the days ahead, as Venezuela sinks deeper into economic ruin and political isolation and questions grow over Maduro’s future. Hugo Chávez’s 56-year-old heir – narrowly elected after his mentor’s 2013 death and then again in disputed elections last May – will begin his second presidential term on Thursday, amid intensifying international condemnation of what critics call his illegitimate and authoritarian rule. Last week, a regional bloc known as the Lima Group turned up the heat, with 13 of its 14 members announcing they would not recognize Maduro’s new six-year term and urging him to step down. Those countries included Brazil, whose new president, Jair Bolsonaro, is well-known for his hostility to Maduro and whose pro-Trump foreign minister recently called for Venezuela’s “liberation”. The US has also stepped up pressure ahead of what it calls Maduro’s “sham inauguration” with the secretary of state, Mike Pompeo, telling one Brazilian newspaper “several things” could be done to rid Venezuela of Maduro’s “unacceptable” regime. Pompeo did not specify what those “things” might be. But after years of dawdling, regional patience does appear to be running out, as the situation in Venezuela deteriorates and Latin American politics swerves to the right under leaders such as Bolsonaro, Colombia’s Iván Duque, Chile’s Sebastián Piñera and Argentina’s Mauricio Macri. The Lima Group’s unexpectedly firm declaration – which includes plans for financial sanctions, preventing top Venezuela officials entering their countries, and suspending military cooperation – appeared partly designed to persuade the Venezuelan military to abandon their commander-in-chief. But any international effort to engineer a peaceful transition would founder unless Venezuela’s fractured opposition united. (The Guardian: https://www.theguardian.com/world/2019/jan/09/venezuela-nicolas-maduro-second-term-neighbours-latin-america)

 

Maduro accuses US of using Lima Group to instigate coup in Venezuela

President Nicolas Maduro has accused the United States of using the Lima Group of American countries to instigate a coup against his government, one day before being sworn in for a second term widely regarded as illegitimate. "I cannot lie to you, civilian and military companions... a coup d'etat is under way under the orders of Washington, from the Lima cartel against the constitutional government I preside over," the national news agency quoted Maduro as saying. "We shall not allow even a single slip. Whatever his name, whatever post he holds, whoever tries to promote a coup plan should know that he will face justice, the constitution and the civilian-military powers," Maduro added. (DPA: http://www.dpa-international.com/topic/maduro-accuses-us-using-lima-group-instigate-coup-venezuela-190110-99-499405)

 

Maduro warns of 'diplomatic measures' against Latin American critics

President Nicolas Maduro on Wednesday warned he could take “diplomatic measures” against Latin American nations that signed a statement last week describing his second term, which starts on Thursday, as illegitimate. Venezuela “has alerted very clearly to the governments of the Cartel of Lima that, if they do not rectify their position (...) we will take the most crude and energetic measures that can be taken in diplomacy,” Maduro, using a pejorative name for the group widely used by ruling Socialist Party leaders. He did not provide details what measures he could take. (Reuters: https://www.reuters.com/article/us-venezuela-politics/venezuelas-maduro-warns-of-diplomatic-measures-against-latam-critics-idUSKCN1P32C0)

 

Group of Lima nations to deny entry to Venezuelan officials

Thirteen nations from the Group of Lima have agreed to deny entry to high-ranking officials of Venezuelan President Nicolas Maduro's government. Colombian Foreign Minister Carlos Holmes said the decision was made after a Friday meeting of the group in Peru. At the end of the Friday meeting, the Peruvian Foreign Ministry issued a joint resolution of the Group of Lima -- in which Mexico was not included -- asking President Nicolas Maduro to abstain from assuming the presidency, to transfer power to the National Assembly and to call for new elections. The resolution said that Group of Lima countries would, depending on internal legislation, take action to prevent the entry of high-ranking Venezuelan officials to their territories and evaluate lists of Venezuelan people and organizations with which transactions will be banned. (UPI: https://www.upi.com/Group-of-Lima-nations-to-deny-entry-to-Venezuelan-officials/9721547047206/#ixzz5cB7CU8ip)

 

Caribbean to decide the fate of Nicaragua and Venezuela at the OAS

The Permanent Council of the Organization of American States (OAS) will meet this week to address the situation of the dictatorships in Venezuela and Nicaragua. In the first case, the government of Nicolas Maduro runs the risk of being repudiated by the OAS, and in the case of Daniel Ortega, is on the verge of the application of the Inter-American Democratic Charter. In this vote, the 15 countries that make up the Caribbean Community (CARICOM) would have an important weight, which will also be very important in the case of Venezuela. The session of Venezuela will be on January 10th and the session of Nicaragua on the 11th. The process for the application of the Inter-American Democratic Charter began on December 27 after the announcement of the secretary general of the regional body, Luis Almagro. In the case of the territorial conflict over the Essequibo region between Venezuela and Guyana, CARICOM has closed ranks in favor of Guyana. Manuel Salvador Abaunza, former ambassador of Nicaragua in Venezuela, says that from January 10 there will be changes in the panorama, because the regime of Nicolas Maduro will have lost legitimacy. “It is very certain that the Caribbean countries will see that they have no future of any kind with Maduro and that it is better for them to start negotiating with the United States, or at least show a change of attitude, because Maduro no longer offers them anything by becoming a De-legitimized state,” he explained. Venezuela still has a card under its sleeve to play -which is Guyana- and that is to offer the Caribbean that they will settle the conflict with Guyana below the table. If that scenario occurs, Venezuela could get CARICOM to vote against both the Nicaraguan resolution and the one against Venezuela. (Havana Times: https://havanatimes.org/?p=146723)

 

World leaders to skip Maduro inauguration amid possible further EU sanctions

 President Nicolas Maduro’s new term will bring further international pressure on Caracas as dozens of countries have called his May re-election fraudulent and pledged not to recognize his new government. The European Union is expected to release a strongly worded warning hinting that further EU sanctions could be levied on the country, should the president continue to flout human rights and the rule of law. The lack of international recognition will be apparent from the lack of foreign visitors at the inauguration ceremony for Maduro, due to be held at 10 am outside the Supreme Court building. Only Cuba and Bolivia have confirmed their presidents will attend, while a handful of other countries will send diplomats.  Plans to organize a mass boycott of the investiture ceremony by all 28 EU ambassadors to Venezuela appeared to have fallen foul of divisions in the bloc, however. The Telegraph understands that the Spanish and Greek ambassadors will attend, but Britain’s will not. Other drastic proposals within Latin America, such as the withdrawal of diplomatic missions from the country or the appointment of a parallel president in exile, have also been rejected for now. To squash any discontent, Maduro will rely on the armed forces and paramilitary groups known locally as colectivos, as he did during 2017 street protests. In the days preceding the inauguration, local media have reported caravans of government supporters, including masked men on truck beds, passing through downtown Caracas. In one of the city’s most emblematic slums, traditionally a bastion of pro-government support, government supporters fired guns into the air on rooftops. (The Telegraph: https://www.telegraph.co.uk/news/2019/01/09/world-leaders-skip-maduro-inauguration-amid-possible-eu-sanctions/)

 

European Parliament reaffirms support for Venezuela’s National Assembly

Antonio Tajani, President of the European Parliament, has expressed support for the the legitimate National Assembly in Venezuela, in a telephone call to the Assembly’s newly elected President, Juan Guaidó. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/internacional/europarlamento-envio-mensaje-de-apoyo-a-la-asamblea-nacional)

 

Spain and Portugal will not send representatives to Maduro’s second inaugural

Spain’s government has confirmed it will not send official representatives to Nicolás Maduro’s swearing in ceremonies. The 28 nations within the European Union announced in December that they would not send representatives if the ceremony were to be held anywhere other than the National Assembly, and that should it take place elsewhere representation would be “beneath ambassadorial rank”. More in Spanish: (El Universal, http://www.eluniversal.com/internacional/30146/gobierno-de-espana-no-asistira-a-toma-de-posesion-de-maduro)

 

Ecuador will not send a representative to Maduro’s swearing-in

Ecuador’s President Lenin Moreno has announced his government’s decision to not send representatives to Nicolás Maduro’s swearing-in ceremony citing the Venezuelan regimen’s violation of human rights: “International protection for human rights is an ethical and legal obligation, not intervention into the internal affairs of other countries”, he said. He called for solving Venezuela’s problems in a peaceful and democratic way, “through dialogue”. More in Spanish: (El Universal, http://www.eluniversal.com/politica/30150/lenin-moreno-anuncio-que-ecuador-no-enviara-representacion-para-asuncion-de-maduro)

 

As Maduro begins new term in Venezuela, opposition sees trouble looming

As Maduro begins his new term on Thursday — one that will have him leading the nation until 2025 — Julio Borges is aware of the perception that Maduro is firmly in control. But Borges doesn’t buy it. As one of Venezuela’s most visible opposition figures who’s not in detention, Borges has spent his time lobbying foreign governments to turn the screws on Maduro. And it’s been working. Borges, 49, has been one of President Nicolas Maduro’s harshest critics over the decades. A co-founder of the Primero Justicia political party and the president of the National Assembly from 2017-2018, he’s been living in exile since March, amid fears that he would join other colleagues who have been detained or died in jail. Not surprisingly, Borges’ advocacy has put him in Maduro’s cross-hairs. The president routinely accuses him of plotting coups and encouraging international invasions. While Borges says he has always favored a peaceful, democratic transition, he said the Maduro administration has opened the door to violence by closing off real opportunities for change. In August, Maduro accused Borges of being one of the masterminds behind an alleged assassination plot that included an explosive-packed drone. Talking in Bogotá, Colombia, his home in exile, Borges says there are plenty of reasons to believe that Maduro may not get to finish out his new term. “Maduro remains in power, fundamentally, due to two things: the support of the military — really just the upper ranks — and the dictatorial know-how of the Cubans,” Borges said. “Outside of that Maduro has nothing. There’s no economic support, no diplomatic support, no political support. ... I think he’s irredeemably defeated and it’s impossible for him to overcome the crisis he’s created.” Borges said the democratic opposition has used every avenue possible to create change: organizing protests, engaging in dialogue, winning the National Assembly, calling for a boycott during the 2018 presidential election, promoting international sanctions. But nothing has moved the needle. “We have done everything we can through civil society and organized politics,” he said. “But the government doesn’t care how much damage is produced as it clings to power.” He adds: “The constitution itself says that any citizen, with or without authority, has the right to restore the constitution, and that’s what society is pleading for the armed forces to do … They are asking for the armed forces to restore the constitution, which Maduro is ignoring.”  Borges said that Maduro clearly has the support of the military’s higher echelon, “the corrupt elite,” but is losing the rank and file. And that’s where the real threats are brewing … what I can tell you with certainty is that inside Venezuela’s armed forces they are not only tired of Maduro, but they’re in revolt. And the country is asking for them to complete their ‘divorce’ … for dignified, constitutional and democratic armed forces to see resurgence.” (The Miami Herald: https://www.miamiherald.com/latest-news/article224124250.html)

 

Defense minister asked Maduro to resign: Washington Post

Venezuela’s defense minister told socialist President Nicolas Maduro to step down last month, and said he would offer his own resignation if he did not, the Washington Post reported on Wednesday, citing an anonymous U.S. intelligence official. Both Maduro and Defense Minister Vladimir Padrino Lopez are still in office. Maduro is set to be sworn in for a second six-year term on Thursday, though several countries in the region have warned him not to take office, calling his May 2018 re-election vote a sham. Discontent within the military’s ranks has grown as Venezuela’s economic collapse has deepened, prompting millions to migrate. Security forces tortured dozens of military personnel accused of subversion last year, according to human rights groups, and detentions for desertion have increased. A U.S. government source told Reuters the government believes reports that Padrino threatened to resign if Maduro did not depart are credible. This week, however, General Padrino made a public statement on behalf of the Venezuelan military, expressing “indignation over the meddling of Latin American governments, under the auspices of the United States, through which they are attempting to ignore Venezuela’s unrelinquishable rights over the Essequibo region”. (Reuters: https://www.reuters.com/article/us-venezuela-politics-defense/venezuelas-defense-minister-asked-maduro-to-resign-washington-post-idUSKCN1P32LQ); and more in Spanish: (El Universal; http://www.eluniversal.com/politica/30048/fanb-rechazo-injerencia-de-paises-latinoamericanos)

 

Military personnel, relatives tortured in Venezuela: HRW

Venezuelan security forces in recent years have detained and tortured dozens of military personnel accused of plotting against the government, and in some cases their family members, two human rights groups said in a report published on Wednesday. The report by New York-based Human Rights Watch and Venezuela’s Penal Forum, which also says forces tortured civilians, comes as countries in the region are pushing the International Criminal Court to probe the government for alleged crimes against humanity. In most cases, members of the country's General Directorate of Military Counterintelligence (DGCIM) or the Bolivarian National Intelligence Services (SEBIN) carried out the arrests, according to the rights groups. In the report, detainees described being strangled, deprived of food and having the soles of their feet cut with razor blades. "The Venezuelan government has brutally cracked down on members of the military accused of plotting against it," said Jose Miguel Vivanco, Americas director at Human Rights Watch. The two groups analyzed information about cases involving a total of 32 people. Victims include military officers accused of plotting against the government and civilians accused of collaborating with Oscar Perez, a rogue police official who was killed in January 2018 after opposing the government. Several detainees did not have access to their families, lawyers or adequate medical treatment during their detentions, the report said. The individuals were arrested for crimes including "treason" and "instigating rebellion", however lawyers representing the accused said the charges were fabricated and not supported by any real evidence. (Al Jazeera: https://www.aljazeera.com/news/2019/01/military-personnel-relatives-tortured-venezuela-hrw-190109155041848.html; Reuters, https://www.reuters.com/article/us-venezuela-rights/venezuela-tortured-military-personnel-accused-of-subversion-rights-groups-idUSKCN1P30BD)

 

Venezuela names ex-spy chief as head of new presidential security unit

Venezuela’s former spy chief, who was ousted last year amid an uproar over the death of a jailed opposition politician, was sworn in on Tuesday as the head of a newly-created presidential security council, according to state television. General Gustavo Gonzalez Lopez was replaced as the head of the National Bolivarian Intelligence Service (SEBIN) in October after opposition councilman Fernando Alban died while detained at the agency’s headquarters in Caracas. The death was officially ruled a suicide, but critics said he was killed. Gonzalez Lopez was sworn in by Vice President Delcy Rodriguez in a brief ceremony just days before socialist President Nicolas Maduro is set to be inaugurated for a second term. (Reuters, https://www.reuters.com/article/us-venezuela-politics/venezuela-names-ex-spy-chief-as-head-of-new-presidential-security-unit-idUSKCN1P301X)

 

Pope criticized for comments on Venezuela and Nicaragua by 20 ex-leaders

In response to Pope Francisco’s annual Urbi et Orbi Christmas speech, 20 ex-leaders from across Latin America wrote a letter to the religious leader criticizing his words regarding the situations in Venezuela and Nicaragua. In his speech, the Pope expressed a desire for Venezuela to find “harmony” and for Nicaragua to reach “reconciliation,” both criticized by the ex-presidents of the region for being too simplistic. The letter was inspired by the Democratic Initiative of Spain and the Americas (IDEA), headed by ex-president of Costa Rica and Nobel Peace Prize winner Oscar.  Your Holiness’ speech … is being interpreted in a very negative way by many in Venezuela and Nicaragua,” the letter stated. “In the current context,” it explained, “your speech could be interpreted as a request to the people who are victims to agree with their aggressors.” In relation to Venezuela, the Pope asked that “it finds peace again and that all the members of the society work together for the development of the country, helping the weakest area of the population.”  “[Venezuelans] are victims of oppression by a militarized narco-dictatorship,” the letter read, “which has no qualms in systematically infringing the right to life, freedom and personal integrity.” (Chile Herald: https://chileherald.com/pope-criticised-for-comments-on-venezuela-and-nicaragua-by-20-ex-leaders/1592/)

 

Venezuela is in crisis. so how did Maduro secure a second term?

President Nicolás Maduro of Venezuela is set to be inaugurated on Thursday for the second time, extending his term in office to 2025, after winning an election last year that had been rejected by nations across the region as illegitimate. But even as his country is grappling with a humanitarian crisis driven by this collapse, Maduro has clung to power. So how did he get here, and how has he managed to hold on? Here’s what to know as Mr. Maduro begins his second term in office. Maduro’s re-election in May 2018 was widely criticized, with reports of coercion, fraud and electoral rigging. Election officials said Maduro won 68% of the vote. The chaotic state of the country and the desperation of poor voters may have contributed to Maduro’s ability to maintain control. Representatives of Maduro’s party tracked those who voted by registering their “Fatherland Card” — or national benefits card — and promised aid and government subsidized food handouts if re-elected. Independent international observers were not on hand, and a crackdown on critics left several of them unable to participate. Opposition leaders called for a boycott of the election, and that, combined with the disillusionment of many longtime government supporters, meant the turnout was exceptionally low. Less than half of the country’s voters cast ballots. How strong is his grip on power? Despite international criticism and a crisis at home, Maduro has won the loyalty of the country’s powerful military by handing its leaders control of the food and oil industries as well as profitable mining regions. But there are clear signs of growing discontent. While the country’s opposition lost much of its power as a result of government persecution and the forced exile of some of its most prominent figures, the election last week of a new president in the opposition-controlled National Assembly, Juan Guaidó, has renewed calls to remove Maduro from power. Who still supports him? Maduro has found some allies in the region, including President Evo Morales of Bolivia, a fellow socialist who will attend the inauguration. And Mexico’s new leftist president, Andrés Manuel López Obrador, invited  Maduro to his own inauguration and has taken a friendlier stance in relations with Venezuela than his predecessor. Russia has remained a staunch ally, with President Vladimir V. Putin voicing his support for Maduro during a December meeting in Moscow. Venezuela has also received recent financial support from China. Within his country, loyal “chavista” governors, named for their support of Chávez and his revolutionary leftist policies, expressed their support for Maduro in a news conference on Wednesday. What’s the impact on Venezuelans? Daily life in Venezuela has become unrecognizable from what it was a few short years ago. Where once the government built homes, clinics and schools for the poor as part of its socialist policy, people are now finding themselves without the most basic necessities. The country’s health system has collapsed, leaving many without access to lifesaving medicine. Hunger is common, and the shelves of grocery stores lie bare. But there is no sense conditions are improving. (The New York Times: https://www.nytimes.com/2019/01/10/world/americas/venezuela-maduro-inauguration.html)

 

EDITORIAL: Latin America has never seen a crisis like Venezuela before

The epic political and humanitarian crisis in Venezuela is due to pass a new juncture Thursday when President Nicolás Maduro is sworn in for a second six-year term. His first saw an implosion unprecedented in modern Latin American history: Though his country was not at war, its economy shrank by 50%. What was once the region’s richest society was swept by epidemics of malnutrition, preventable diseases and violent crime. Three million people fled the country. Yet Maduro, having orchestrated a fraudulent reelection, presses on with what the regime describes as a socialist revolution, with tutoring from Cuba and predatory loans from Russia and China. If there is any light in this bleak picture, it is that Venezuela’s neighbors are edging toward more assertive action to stem a crisis that, with the massive flow of refugees, threatens to destabilize several other countries. Last week, 13 governments, including Brazil, Colombia, Argentina and Canada, issued a statement declaring Maduro’s presidency illegitimate and threatening sanctions. Peru imposed travel and banking restrictions on Maduro and his cabinet, and several countries said they would recognize the opposition-controlled National Assembly as Venezuela’s only legitimate institution. Unfortunately, that is unlikely to move the regime. Like three administrations before it, the Trump White House has struggled over how to respond to the Chavistas. As conditions continue to deteriorate Maduro may finally be toppled by dissidents inside the regime or a new popular uprising. If not, the pressure Venezuela is putting on its neighbors will escalate. One recent study by scholars at the Brookings Institution concluded that 5 million more refugees may pour across the borders. The region has never seen a crisis like this: a steadily escalating catastrophe with no solution — either from inside or outside — in sight. (The Washington Post: https://www.washingtonpost.com/opinions/global-opinions/latin-america-has-never-seen-a-crisis-like-venezuela-before/2019/01/09/26cc15b4-1381-11e9-b6ad-9cfd62dbb0a8_story.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.

Tuesday, June 11, 2013

June 11, 2013

Economics & Finance

Venezuela hit by fears of hyperinflation and recession. Hyperinflation is looming in Venezuela, with prices suffering their highest monthly rise on record in May, while the economy slides into recession and the popularity of Nicolas Maduro wanes. Prices rose 6.1% in May, compared with 1.6% in the same period last year, bringing accumulated inflation for the first five months of 2013 to 19.4%, almost as high as the annual figure for 2012 of 20.1%.  The sudden jump in prices, with the 4.3% rise in April already sounding alarms, has triggered fears at Goldman Sachs that Venezuela could be on the brink of hyperinflation. At present, the annualized rate of inflation in Venezuela is 35.2%. At the same time, the economy is losing steam, with 0.7% growth registered in the first quarter of 2013, compared with 5.9% in the same period last year. Analysts at London-based consultancy Capital Economics suspect that the Venezuelan economy may already be in recession, and forecast that gross domestic product will contract by 1% this year.  “The Maduro administration seems to be incapable of acting and is locked in internecine policy and power conflicts that are causing paralysis,” says Russ Dallen, managing partner at Caracas Capital Markets. (Financial Times, http://www.ft.com/intl/cms/s/0/b41fbcb4-d0f1-11e2-be7b-00144feab7de.html#axzz2VmcrDONS)

Country risk up 18% since 14 April elections
According to economist Alfredo Puerta, Venezuela´s country risk has risen 18% since President Maduro was elected, and is now at 876, above high risk nations such as Greece, Iraq or the Ukraine. These conditions render it very unlikely for new debt to be issued in the short term. More in Spanish: (El Nacional, 06-11-2013; http://www.el-nacional.com/)

New legal FOREX market under study
In a report on Venezuela BARCLAYS Capital predicts the nation's exchange system will be adjusted over the next few months. The firm says that after meetings between government representatives and the private sector, authorities have a more pragmatic attitude and that a number of steps are being taken which indicate "a shift toward moderation in economic policy". The report adds that authorities are working toward making the FOREX system more flexible, which could involve a short renewal of SICED (Ancillary FOREX System), and seeking legal means to open an unofficial but legal market. More in Spanish: (El Universal, 06-11-2013; http://www.eluniversal.com/economia/130611/se-analizan-vias-legales-para-crear-otro-mercado-de-divisas; El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/barclays--gobierno-venezolano-estudia-retorno-del.aspx)

Finding scarce food and toilet paper in Venezuela _ now there’s a free mobile app for that
Harried Venezuelans who devote hours scouring supermarkets for increasingly scarce food basics and toilet paper have just received some digital help thanks to a young software developer. A free application for mobile devices written by Jose Augusto Montiel lets people notify one another where flour, sugar, milk, cooking oil and toilet paper are for sale. It has been downloaded more than 12,000 times. The app, known as ABASTECEME, or Supply Me, is Android-based and relies on Google Maps for geographic location. It leverages what is known in the tech world as crowd-sourcing, with users notifying one another where a certain product is for sale. Basic items such as wheat flour and butter have gone missing on store shelves throughout Venezuela. Economists blame government-imposed price controls, while President Nicolas Maduro says greedy merchants are hoarding goods. (The Washington Post, 06-09-2013; http://www.washingtonpost.com/world/the_americas/finding-scarce-food-in-venezuela-theres-an-app-for-that/2013/06/09/93960792-d10e-11e2-9577-df9f1c3348f5_story.html; Fox News, http://www.foxnews.com/tech/2013/06/10/finding-toilet-paper-in-venezuela-app-for-that/)

FEDECAMARAS says supply crisis will not ease soon
Jorge Botti, President of FEDECÁMARAS says the nation's economic condition "continues to be pressing", and that "we cannot expect short term improvement in the supply system". He was positive that there is "finally" an "open discussion" between private companies and the Government, but noted that despite intentions there have been "contradictions between speeches by ministers for the economy, and political discourse". He added that there have been no signs of rising confidence as "the business community cannot very well digest talk of an armed, but peaceful, labor militia". More in Spanish: (El Universal, 06-11-2013; http://www.eluniversal.com/economia/130611/fedecamaras-senala-que-el-abastecimiento-no-mejorara-en-el-corto-plazo)

Food minister seeks to avoid panic buying
Food Minister Felix Osorio said on Twitter that panic buying has caused an excessive consumption of staples, making it more difficult catch up with domestic supplies. He said that public behavior, going in masse to supermarkets to purchase more products than they need, is due to a campaign launched by some media. (AVN, 06-10-2013; http://www.avn.info.ve/contenido/food-minister-urges-prevent-panic-buying)

6.7% drop in minimum wage purchasing power for minimum wage over past eight months
Inflation has eroded the purchasing power of those who earn a minimum wage in Venezuela, despite the latest wage increase. In eight months their power to buy goods and services has fallen 6.7% in view of accelerated price increases this year. More in Spanish: (El Mundo, 06-11-2013; http://www.elmundo.com.ve/noticias/economia/laboral/en-ocho-meses-el-poder-de-compra-del-salario-minim.aspx#ixzz2Vu5h8yxe)

Commodities

GRUMA seeks ICSID arbitration vs. Venezuela
Mexican cornmeal giant GRUMA has sued Venezuela at ICSID, the World Bank's- International Centre for Settlement of Investment Disputes after three years of failed negotiations on setting up a joint venture following the expropriation of their operations here. In April GRUMA said they continued to operate their 15 plants locally, in association with authorities, as they defined the terms of nationalization ordered by the late President Chavez. More in Spanish: (El Universal, 06-11-2013; http://www.eluniversal.com/economia/130611/gruma-solicita-arbitraje-ante-el-ciadi-contra-venezuela)

SIDOR and ORINOCO Iron pellet plants paralyzed
SIDOR's pellet plant has stopped operating completely due to a lack of iron ore caused by am eight day old strike at CVG Ferrominera Orinoco, which has halted dispatches. Their stoppage hits the entire briquette industry. More in Spanish: (El Universal, 06-11-2013; http://www.eluniversal.com/economia/130611/se-paralizan-planta-de-pellas-de-sidor-y-orinoco-iron)

International Trade

Government directly controls of 45% of imports
According to Central Bank data over the past five years, imports increased by 20% but were driven by the public sector. The government went from receiving 25% of shipments in the first quarter of 2009 to 45.6% of the total, whereas 54.4% goes to the private sector. More in Spanish: (El Universal, 06-02-2013; http://www.eluniversal.com/economia/130602/el-estado-controlo-mas-del-45-de-las-importaciones)

Logistics & Transport

Cargo volumes down 35% year to date
As the drop in imports continues so has cargo brought in by carriers. Eddy Meayke, President of the Shipping Association says "It is a difficult situation; cargo volume has dropped 30-35% compared to the same time frame last year". He says the fleet is "ready and available" for the time when FOREX controls are eased so that private companies can increase volume. Eduardo Quintana, First Vice President of FEDECÁMARAS Vargas estimates there is a 75% drop in imports this year. He called the situation critical and says port operations are almost paralyzed. (El Nacional, 06-11-2013; http://www.el-nacional.com/)

Politics

Colombia suggests UN should check out Venezuelan claims
Colombia's Vice President Angelino Garzón has proposed that the UN should verify Venezuelan allegations that the opposition has purchased aircraft to attack Venezuela from Colombia. The allegations were first made by José Vicente Rangel, recently appointed as member of the Council of State, and also former Vice President, Foreign Minister and Defense Minister within the Chavez regime. More in Spanish: (El Universal, 06-11-2013; http://www.eluniversal.com/nacional-y-politica/130611/colombia-sugiere-que-onu-revise-denuncia-de-rangel)

Maduro calls the Council of State to define relations with Colombia
President Nicolas Maduro called a State Council meeting next Tuesday in order to "define" relations with Colombia. The relationship between the two countries strained after Santos received opposition leader Henrique Capriles and after the announcement of the government of Juan Manuel Santos to seek closer ties with NATO. The purpose of the meeting is to draft a document that expresses the vision of the relations between the two countries, Maduro said. More in Spanish: (CNN, 06-09-2013; http://cnnespanol.cnn.com/2013/06/09/maduro-convoca-al-consejo-de-estado-para-definir-relaciones-con-colombia/?iref=allsearch)

Santos: I did not intend to provoke Maduro when I met with opponent
Colombian President Juan Manuel Santos seeks positive relations with Venezuela and claims he had no intention to "provoke" President Nicolás Maduro when he met in Bogotá with opposition leader Henrique Capriles.
"I am a democrat and I think it is normal to meet with the government and the opposition," Santos.
"It was not my intention to provoke a friendly government with whom we have good relations, even though we are very different in many ways and have different views," the president said in an attempt to appease the Venezuela-Colombia diplomatic tensions ignited by his meeting with Capriles.
(El Universal, 06-08-2013; http://www.eluniversal.com/nacional-y-politica/130608/santos-i-did-not-intend-to-provoke-maduro-when-i-met-with-dissenter)

"Audit" by Electoral Council confirms Maduro win
Venezuela’s Electoral Council has completed an audit of results from April’s bitterly contested presidential election, and as expected it confirmed Nicolas Maduro’s 1.5% victory. No government official appeared publicly to comment on the outcome, but an official at the council confirmed on Sunday a report by the state-run AVN news agency that the audit supported the official vote count. The opposition has complained that the council ignored its demand for a full recount. That would have included not just comparing votes electronically registered by machines with the paper ballot receipts they emitted, but also comparing those with the poll station registries that contain voter signatures and with digitally recorded fingerprints. (The Washington Post, 06-09-2013; http://www.washingtonpost.com/world/the_americas/audit-by-venezuela-electoral-council-confirms-presidential-win-for-chavez-heir-nicolas-maduro/2013/06/09/cf977f42-d162-11e2-9577-df9f1c3348f5_story.html; Fox News, http://www.foxnews.com/world/2013/06/09/audit-by-venezuela-electoral-council-confirms-presidential-win-for-chavez-heir/)

Maduro says he has halted plans to restrict food sales in Zulia state
President Nicolas Maduro says he has put a halt to a plan to restrict sales of 20 basic food products in Venezuela’s most populous state, a scheme critic had deemed rationing in disguise. Officials in western Zulia state had said the plan to limit sales of items such as cooking oil, flour, chicken and toilet paper — all of which are subject to price controls — could begin as early as Monday at 65 supermarkets. But they never explained exactly how it would work. Data on purchases would reside on computer servers to guarantee that individuals did not make multiple purchases of the same item in different supermarkets, they said. (The Washington Post, 06-08-2013; http://www.washingtonpost.com/world/the_americas/venezuelas-president-says-hes-asked-that-food-restrictions-not-proceed/2013/06/08/415195b6-d06c-11e2-9772-6fcf660e8c49_story.html)

Diosdado Cabello meets with Raul and Fidel Castro in Cuba
Diosdado Cabello, president of the National Assembly, met with President Raul Castro and Fidel Castro to discuss bilateral relations and challenges to Venezuela. Cabello's activities included meetings with Esteban Lazo, President of the Cuban parliament and leaders of the Communist Party. More in Spanish: (CNN, 06-09-2013; http://cnnespanol.cnn.com/2013/06/09/diosdado-cabello-se-reune-con-raul-y-fidel-castro-en-cuba/?iref=allsearch)


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.

Tuesday, April 30, 2013

April 30, 2013


Economics & Finance

Maduro facing an economy in distress
President Nicolás Maduro is facing an economy requiring urgent care and an economic scenario in critical condition. Soaring inflation and rising shortages are two of the most pressing problems. Maduro will also have to deal with a stagnating foreign currency-allocation system, considerable fiscal deficit and significant debt, regardless of sustained oil revenues. The energy crisis is another major issue that must be immediately addressed. Despite Maduro's charges of "sabotage" during the electoral campaign the truth is that power-generation deficiencies abound and lack of maintenance remains a harsh reality. (El Universal, 04-27-2013; http://www.eluniversal.com/economia/130427/maduro-receives-an-economy-in-distress)

Central Bank to trade banking reserves for housing bonds
The Central Bank has approved a directive that allows for trading mandatory reserves within the banking system for certificates issued by the Simón Bolívar Reconstruction Fund for 2013, in order to finance official housing projects. Banks are required by law to 17 out of every 100 bolivars deposited, but they may now use these funds to acquire the special government papers. More in Spanish: (El Universal, 04-29-2013; http://www.eluniversal.com/economia/130429/bcv-emite-normas-sobre-el-encaje-legal)

Giordani reported clinging to power
In his first official act President Nicolás Maduro separated the Finance and Planning Ministries, but his decree empowered the former joint Ministry to take up to 180 days to make the transfers effective. High official sources report that hard line ideologue Jorge Giordani is entrenched in his former post and office, applying the technicality to its full extent and setting off alarms within the team of incoming Finance Minister Nelson Merentes, who would have to wait 6 months in order to take full charge of a stagnating economy. More in Spanish: (El Comercio, http://elcomercioweb.com/web/investigacion/giordani-se-niega-a-soltar-el-coroto/)



Commodities

PETROBRAS says no more contacts with Pdvsa over refinery
Brazilian state-owned oil company PETROBRAS reported on Monday that no further contacts have been made with its Venezuelan counterpart Petróleos de Venezuela (PDVSA), since the extension expired on the original term of a partnership agreement to build a crude oil refinery in Brazil. A senior executive officer of the Brazilian oil company told Reuters that political instability in Venezuela might have driven its Venezuelan partner away from the talks on the construction of Abreu e Lima refinery, in Pernambuco, where Pdvsa was expected to have a 40% interest. (El Universal, 04-29-2013; http://www.eluniversal.com/economia/130429/petrobras-points-to-no-more-contacts-with-pdvsa-over-refinery)

GRUMA vows to continue operating in Venezuela
According to GRUMA representatives, even though its facilities here are in the hands of government appointed receivers, the Mexican producer keeps on running the companies. They say "business remains as usual since expropriation". In its economic report for Q1 2013, GRUMA notes it was "stripped" of control over its subsidiaries Molinos Nacionales (MONACA) and Derivados de Maíz Seleccionado (DEMASECA). As a consequence it had to stop consolidating such assets together with those of the group in order to meet global accounting standards. (El Universal, 04-29-2013; http://www.eluniversal.com/economia/130429/gruma-vows-to-continue-operating-in-venezuela; El Impulso, 04-27-2013; http://elimpulso.com/articulo/mayor-empresa-productora-de-harina-de-maiz-emprende-retirada-en-venezuela#.UX7B57WTglS; CNN Expansión, http://cnnespanol.cnn.com/2013/04/26/gruma-emprende-su-retirada-de-venezuela/?iref=allsearch)

General Justo Noguera has been appointed new President of the Guayana Development Corporation, replacing Colonel Rafael Gil. He was previously chairman of the committee for control and follow up within basic industries and developed a positive relationship with labor representatives at SIDOR, ALCASA, VENALUM and CARBONORCA. More in Spanish: (El Mundo: http://www.elmundo.com.ve/Noticias/Economia/Empresas/Justo-Noguera-sera-el-nuevo-presidente-de-la-CVG.aspx)


International Trade

Maduro pledges continued alliance with Cuba
Cuba and Venezuela signed cooperation accords on Saturday for 51 projects as President Nicolas Maduro, on his first trip to the island since his election, pledged to maintain the close alliance forged by his late predecessor, Hugo Chavez. Maduro said they would jointly spend U$D 2 billion this year on "social development," but it was not clear if he was discussing the 51 projects, few details of which were disclosed, or other works. His visit appeared aimed in part at allaying Cuban worries about post-Chavez relations with the nation that is Cuba's biggest ally and benefactor. Venezuelan oil and money help keep the communist-ruled island's troubled economy afloat and the governments have about 30 joint ventures, most of them in Venezuela. (Reuters, 04-28-2013; http://www.reuters.com/article/2013/04/28/cuba-venezuela-maduro-idUSL2N0DF03T20130428; AVN, 04-27-2013; http://www.avn.info.ve/contenido/cuba-venezuela-sign-new-bilateral-agreements; El Universal, http://www.eluniversal.com/economia/130429/castro-maduro-pact-helps-shore-up-cubas-economic-plan; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=763027&CategoryId=10717)

Sixteen presidents to attend PETROCARIBE summit
A total sixteen heads of state and government will take part on the next Petrocaribe Summit, expected to be held on 4 May in Margarita island, says president Nicolas Maduro. (AVN, 04-29-2013; http://www.avn.info.ve/contenido/sixteen-presidents-attend-petrocaribe-summit)



Logistics & Transport

La Guaira port operations reported down 60% due to FOREX restrictions
Eduardo Quintana, Vice President of the Vargas State Chamber of Commerce estimates port operations at La Guaira have dropped 60% since "there is no easy and feasible way to acquire FOREX at the official 6.30 rate". He says customs agents and port operators are being hit by a paralyzed port system. He says government currency controls have smothered anything that might make private imports possible, and the only arrivals are for official activities; and reports companies are starting to cut down around 50% of their personnel. More in Spanish: (El Comercio; http://elcomercioweb.com/web/investigacion/operaciones-portuarias-caen-un-60-por-falta-de-dolares/)



Politics

Venezuela to audit votes without the opposition, Court challenge to follow
Venezuela's electoral body has said the audit of votes cast in the presidential election will start on 6 May. But it will not carry out the full recount demanded by opposition candidate Henrique Capriles, who appears to have lost narrowly to President Nicolas Maduro on 14 April. Capriles called the audit a fake, accusing the electoral council (CNE) of following the government's orders. CNE president Tibisay Lucena said Capriles' demands were "unfeasible". The opposition leader reacted angrily to her announcement on national television: "Again they think Venezuelans are fools! Without [comparing] the vote tallies, the audit is a fake!". He also wrote that it was "impossible that Mrs. Lucena would say anything against the order she was given" by the governing party. On Sunday, Capriles repeated that he would use "all the available instances" to fight Maduro's victory. He had already vowed to challenge it in the Supreme Court seeking to annul the election and allow Venezuelans to go back to the polls. (BBC; http://www.bbc.co.uk/news/world-latin-america-22333705)

Electoral officer: the election audit should dispel doubts
The National Electoral Council's sole independent member Vicente Díaz believes the electoral race was "unfair and anti-democratic," and therefore the Venezuelans questioning the results should be given the opportunity to conduct an audit. "We, as National Electoral Council, failed to ensure balance in this election (...) It is not the directors (of CNE) who have to be certain about the results, but voters, the country," Díaz said. (El Universal, 04-29-2013; http://www.eluniversal.com/nacional-y-politica/130429/electoral-officer-the-election-audit-should-dispel-doubts)

Vote gap between Capriles and Maduro down to 1,49 %
The Elections Board has divulged votes by Venezuelans abroad, which have tallied 53,845 (93.13%) for Capriles and 3919  (6.77%) for Maduro, thus bringing the gap between the two candidates to 1.49%. 21 polling stations abroad remain yet to be counted. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/elecciones-2013/130429/diferencia-entre-maduro-y-capriles-se-redujo-a-149)

Government and opposition trade accusations but hold off on escalating conflict
A postelection crisis appears to be setting into a slow boil in Venezuela, with the government and opposition trading bitter accusations but holding back for the moment from moves that would escalate into direct conflict. The government is threatening to jail opposition leader Henrique Capriles on charges of masterminding postelection violence but has given no indication it has any immediate intention of acting against him. Capriles, meanwhile, is boycotting an audit of the vote and plans to challenge his narrow loss in court. He is almost certain to lose in the government-controlled court system, but hasn’t hinted that he will call his followers to the streets anytime soon. (The Washington Post, 04-26-2013; http://www.washingtonpost.com/world/the_americas/venezuelas-government-opposition-trade-accusations-but-hold-off-on-escalating-conflict/2013/04/26/3e51139a-aeda-11e2-b59e-adb43da03a8a_story.html)

A ‘hard hand’ in Venezuela
Any doubt that Nicolas Maduro is taking his cues from Cuba should have been dispelled by events over the weekend. As Maduro huddled with the Castro brothers in Havana and recommitted Venezuela to the heavy subsidies that keep the Cuban economy afloat, his functionaries back in Caracas made two announcements: first, that a promised audit of the questionable election that ratified him as the successor to Hugo Chavez would be perfunctory, excluding the materials that the opposition says would show evidence of fraud; and second, that a 35-year-old U.S. filmmaker arrested last week on ludicrous accusations of espionage had been criminally charged. Timothy Tracy, a Hollywood-based documentary maker who spent several months interviewing Chavez militants and opposition students before he was abruptly arrested at the airport last Wednesday. Maduro and the regime’s propaganda apparatus are nevertheless portraying him as a sinister secret agent who was financing “violent groups” to provoke “a civil war.” That claimed Interior and Justice Minister General Miguel Rodriguez “would lead to the intervention of a foreign power to bring order to the country.” The real danger in Venezuela is that Maduro will follow up with a full-scale crackdown on the opposition. Government spokesmen have taken to calling Henrique Capriles, who challenged Maduro in the presidential election and demanded an audit of the results, a “fascist murderer”; the prisons minister said she has a cell waiting for him. On Saturday, authorities arrested a retired general, Antonio Rivero, who is known for his denunciations of Cuban infiltration of the Venezuelan military. Maduro keeps promising he will soon apply “mano dura,” or a hard hand — a phrase that has been a favorite of Latin strongmen. He and his Cuban tutors will likely watch to see if there is any substantial response from the Obama administration or other South American governments to the seizing of Mr. Tracy. If there is not, don’t be surprised to see Venezuela’s jails filled by Mr. Capriles and other political prisoners. (The Washington Post; http://www.washingtonpost.com/opinions/a-hard-hand-in-venezuela/2013/04/29/96d0e5ee-b0ed-11e2-bbf2-a6f9e9d79e19_story.html)

Capriles: Miranda is the only Venezuelan state that has not received funds
Miranda state governor Henrique Capriles Radonski has charged his state is the only one in the country that has not received central government funding a mandated by the Constitution. "There is an order being enforced, which is not to provide the mandated allocation to Miranda state," the governor complained, and strongly demanded the national government to make the funds available - saying his political and personal position should not be turned against the people of Miranda. He called the move a crime and called Maduro a coward for his actions. (El Universal, 04-29-2014; http://www.eluniversal.com/nacional-y-politica/130429/capriles-miranda-is-the-only-venezuelan-state-that-has-not-received-fu and more in Spanish: El Universal, http://www.eluniversal.com/nacional-y-politica/130430/capriles-le-dice-cobarde-a-maduro-por-retener-situado)

Spain would mediate in Venezuela, if asked, says Spanish Foreign Minister José Manuel García Margallo. More in Spanish: (El Universal, 04-30-2013; http://www.eluniversal.com/nacional-y-politica/130430/espana-se-ofrece-para-mediar-ante-tension-venezolana)


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.