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 Jorge Arreaza. Show all posts
Showing posts with label Jorge Arreaza. Show all posts

Tuesday, April 9, 2019

April 09, 2019


Logistics & Transport

 

US-blacklisted Iranian airline may begin direct flights to Venezuela

A plane belonging to MAHAN Air, a private Iranian airline accused by the West of transporting military equipment to Middle East war zones, landed in Caracas on Monday, and the two countries will discuss launching a direct flight “in the coming months,” Minister Jorge Arreaza told reporters. An Iran Foreign Ministry delegation left Tehran early Monday on a MAHAN Air flight in route to Caracas, Iran’s IRNA news agency reported. The spokesman of Iran's Civil Aviation Organization, Reza Jafarzadeh, told MEHR news agency the delegation included a group representing the private airline that was traveling to Caracas to discuss maintaining regular flights between the two countries. MAHAN Air, established in 1992 as Iran’s first private airline, has the country’s largest fleet of aircraft. But the U.S. blacklisted MAHAN in 2011 after accusing it of providing support to Quds Force, an elite unit of Iran’s Revolutionary Guard. The carrier recently halted flights to Germany and France due to U.S. sanctions over its military transport flights to Syria, where Iran supports President Bashar Assad’s forces. The United States views private Iranian airline Mahan Air’s launch of a direct flight from Tehran to Caracas as a “politically motivated gesture” with “no commercial reason,” a White House official said on Monday. “This is a politically motivated gesture that is unhelpful to the Venezuelan people because it doesn’t accelerate the change that we’re looking for,” the official said. (Fox News: https://www.foxnews.com/world/us-blacklisted-iranian-airline-begins-direct-flights-to-venezuela; Reuters, https://www.reuters.com/article/us-iran-venezuela-airlines-usa/no-commercial-reason-for-irans-mahan-air-flights-to-venezuela-white-house-official-idUSKCN1RK2CJ; https://www.reuters.com/article/us-iran-venezuela-airlines/iranian-delegation-travels-to-venezuela-to-discuss-direct-flight-route-idUSKCN1RK1VM; https://www.reuters.com/article/iran-venezuela-airlines/irans-mahan-air-launches-direct-flights-to-venezuela-idUSL8N21Q11T)

 

As the Maduro regime blocks aid and makes arbitrary arrests, locals turn to an app as a lifeline

In a crumbling country where almost all but state-owned media outlets have been shuttered, food and medicine are scarce, unrest is rising, and authorities could throw you behind bars at any moment – there is an app that is being accredited as something of a lifeline for desperate Venezuelans and for their compadres abroad. ZELLO, which functions akin to a walkie-talkie and is a push-to-talk voice messaging app, introduced the Venezuela-specific channel Venezuela Hasta Los Tuétanos to provide information about the burgeoning political, social, economic, and humanitarian calamity. The app creators are purporting not only to help Venezuelans coordinate protests, elude security and mobilize their marches, but it also endeavors to assist in pinpointing where crucial humanitarian resources such as food and medicine can be located. Since the contested Nicolas Maduro took a self-styled oath for a new term, which has not been recognized by most of the international community, there has been a 135% uptick in downloads. Overall, there have been 735,696 downloads in Venezuela, and over 13,600 in the ailing nation this year alone. Furthermore, the 24/7 channel itself is documented to now has over 70,000 subscribers and on average, there are 200 to 2,000 listeners connected at any given time. And as the once oil-swathed and wealthy nation continues to fall apart at the seams, the app doesn’t come at a cost. Yet on the ground in the poverty-stricken country, views on the app were mixed. Some expressed concern that it had been penetrated by government intelligence and that even though identities were not disclosed, efforts to challenge the regime could still be intercepted and ultimately crushed. (Fox News: https://www.foxnews.com/tech/as-venezuelas-government-blocks-aid-and-arbitrarily-arrests-locals-turn-to-an-app-as-a-lifeline)
 

Oil & Energy

Venezuela pledges to honor oil commitments to Cuba despite sanctions

Venezuela will “fulfill its commitments” to Cuba despite United States sanctions targeting oil shipments from this country to its ideological ally, Foreign Minister Jorge Arreaza said on Monday. Washington on Friday imposed sanctions on 34 vessels owned or operated by state-run oil company Petroleos de Venezuela as well as on two companies and a vessel that have previously delivered oil to Cuba, aiming to choke off a crucial supply of crude to the Communist-run island. Venezuela has long sent subsidized crude to Cuba. The United States describes the arrangement as an “oil-for-repression” scheme in which Havana helps socialist Nicolas Maduro weather an economic crisis and power struggle with the opposition in exchange for fuel. Arreaza said he would not reveal Venezuela’s “strategy,” but that the sanctions would not stop the shipments. “When the conventional power of capitalism attacks you, you have to know how to respond through non-conventional means, always respecting international law,” Arreaza told reporters. Venezuela’s legislature last month ordered an end to oil shipments to Cuba, but PDVSA - controlled by military officers loyal to Maduro - has continued the exports. The most recent fuel shipment to Cuba left Venezuela’s Jose port on April 4, carrying liquefied petroleum gas, according to REFINITIV EIKON data. In the second half of March, two tankers carrying crude and two tankers carrying refined products left for Cuba. The only tanker sanctioned on Friday, the Despina Andrianna, is currently returning to Jose after unloading crude at Cuba’s Cienfuegos refinery in March. Another three vessels are waiting off Venezuela to load with shipments destined for Cuba. (Reuters: https://www.reuters.com/article/us-venezuela-politics-cuba/venezuela-pledges-to-honor-oil-commitments-to-cuba-despite-sanctions-idUSKCN1RK2HZ)

 

US sanctions 34 tankers that transport oil from Venezuela to Cuba

The US Treasury Department announced on Friday economic sanctions against 34 oil tankers that transport petroleum from Venezuela to Cuba, a new pressure tactic against the regime of Nicolas Maduro. “The United States is holding accountable those responsible for Venezuela’s tragic decline and will continue to use the full suite of its diplomatic and economic tools to support Interim President Juan Guaidó, the National Assembly, and the Venezuelan people’s efforts to restore their democracy,” Treasury Secretary Treasury Steven Mnuchin said in a statement on Friday. “Cuba continues to profit from, and prop up, the illegitimate Maduro regime through oil-for-repression schemes as they attempt to keep Maduro in power,” Mnuchin said. “The United States remains committed to a transition to democracy in Venezuela and to holding the Cuban regime accountable for its direct involvement in Venezuela’s demise,” he added. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2477067&CategoryId=10717; Reuters, https://www.reuters.com/article/us-venezuela-politics-pence-houston/u-s-ratchets-up-pressure-on-venezuela-cuban-backers-idUSKCN1RH1B5; Bloomberg, https://www.bloomberg.com/news/articles/2019-04-05/u-s-sanctions-two-companies-over-venezuela-cuba-oil-shipments)

 

Lawyers for Venezuela's Guaidó ask U.S. court to protect CITGO

Representatives of Venezuelan interim president Juan Guaidó have asked a U.S. court to overturn a prior ruling allowing Canadian miner CRYSTALLEX to seize part of U.S. refiner CITGO, which is owned by state oil company Petroleos de Venezuela. Last year, a judge ruled CRYSTALLEX could seize shares in CITGO and auction them in its bid to get paid on a US$ 1.4 billion award tied to the 2008 nationalization of its gold mining operations by the now cash-strapped country. That conflicts with Guaidó’s efforts to preserve the country’s assets abroad, especially CITGO, which is pledged as collateral to multiple creditors. His lawyers argued to an appeals court that a lower court’s ruling in favor of CRYSTALLEX be reversed considering the new political circumstances. In its March 20 ruling allowing Guaidó’ s representatives to intervene in the case, the judge said CRYSTALLEX would have until April 10 to respond to its arguments. (Reuters: https://www.reuters.com/article/us-venezuela-politics-crystallex/lawyers-for-venezuelas-Guaidó-ask-u-s-court-to-protect-citgo-idUSKCN1RH2JA)

 

Restoring Venezuela's electricity system may take up to one year — regime to cut electricity 18 hours per week

Works to restore Venezuela's electricity system may take up to a year, the country's Electricity Minister Igor Gavidia told Venezolana de Television TV channel on Monday. "We will solve the problem in accordance with the plan set for us by President Nicolas Maduro. We are talking about plans for several terms - for up to 30 days, for 30-60 days, for 60-90 days, and for a year," Gavidia, who was appointed as Electricity Minister on April 1, said. The Nicolas Maduro regime released on Friday its schedule for electricity rationing for Venezuela, with the exception of Caracas and three other states, according to which the general public will be without electric power for at least 18 hours per week. The Electric Energy Ministry and the state-run CORPOELEC electricity company designed a schedule dividing 20 of the country’s 23 states into five sectors with different rationing schemes with the idea of implementing daily three-hour blackouts six days per week. According to this plan, on one day per week each sector will have electricity for the full 24 hours. The rationing measure specifically excludes the state of Vargas near Caracas where Venezuela’s main airport is located, along with the southern state of Amazonas and the northeastern state of Delta Amacuro, border regions far from the capital. (TASS: http://tass.com/world/1052742; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2477054&CategoryId=10717)

 

UNICEF sends generators to Venezuela’s hospitals

With no end to the political crisis in sight, UNICEF has provided generators to guarantee power to 7 hospitals. Many regions of Venezuela continue to be deprived of electricity and drinking water, as more and more supplies are cut off due to the ongoing political crisis. In response the charity UNICEF has deployed portable generators to guarantee a supply of electricity to pediatric hospitals and maternity wards. Much of UNICEF’s work is being coordinated with the government ministry for health. UNICEF reports supplying generators to 7 state run hospitals to guarantee enough electricity to allow surgeries and births to take place. It is estimated that up to 24,000 children will benefit as a result of these measures. UNICEF has also increased its supply of vaccines for diseases such as measles, diphtheria, malaria and HIV, aiding another 150,000 people. The country’s water supply has also been affected by the crisis, with much of the infrastructure being neglected, depriving many areas of a reliable supply of clean water. UNICEF reports that it has distributed water purification tablets to over 12,000 families, with a further 4,200 receiving oral rehydration salts as well. (Vatican News: https://www.vaticannews.va/en/world/news/2019-04/unicef-sends-generators-to-venezuela-s-hospitals.html)

 

Venezuela oil production 'bad, getting worse,' IHS Markit's Yergin says

Daniel Yergin, vice chairman at IHS Markit, discusses Venezuela's oil production, the Trump administration's sanctions on Iran, and possible Permian basin energy firm consolidation. He speaks with Bloomberg's David Westin and Alix Steel on "Bloomberg Markets: Balance of Power." (Bloomberg, https://www.bloomberg.com/news/videos/2019-04-05/venezuela-oil-production-bad-getting-worse-ihs-markit-s-yergin-says-video)

 

 

Economy & Finance

World Bank sees Venezuela GDP contracting another 25% by year end

The economy in crisis-hit Venezuela is expected to contract a further 25% in 2019, the World Bank said on Thursday. "Real GDP contracted by 17.7% in 2018 and is likely to fall by 25.0% in 2019, which would imply a cumulative fall in GDP of 60% since 2013," the bank said in its most recent biannual report on Latin America and the Caribbean. The report attributes this "continuing implosion" in Venezuela, which has the most oil reserves of any country in the world, to the management of the country's economy rather than the global drop of oil prices and called the Venezuelan crisis "by far the worst in the region's modern history." Together with declining oil prices, "highly distortionary policies, from price controls to directed lending, a disorderly fiscal adjustment, monetization of the public sector deficit, and overall economic mis-management have led to hyperinflation, devaluation, debt defaults, and a massive contraction in output and consumption" in Venezuela, according to the World Bank. The bank repeated the estimate that the country would see inflation of 10 million per cent by the end of the year, a figure that was already predicted by the International Monetary Fund (IMF) in October. The report, by the World Bank's Latin America and Caribbean chief economist Carlos Vegh, stressed the "tragic growth collapse" here as "economic and social conditions continue to deteriorate rapidly." "Hunger and disease are spreading throughout the country," it said, citing the 90% poverty rate (according to unofficial estimates) and highlighting a rising infant mortality rate of 26 per every thousand live births between 2013 and 2017, a rate similar to the 1980s. "Crime and violence have also increased substantially, with Venezuela becoming the country with the highest homicide rate in the region (89 homicides per 100,000 inhabitants), a rate almost three times as high as that of countries at war," it added. (Times Now: https://www.timesnownews.com/business-economy/world-news/article/world-bank-sees-venezuela-gdp-contracting-another-25-by-year-end/394956)

 

Without water, Venezuela Central Bank said to send workers home

Venezuela’s central bank has been operating with an emergency team of only about 100 workers since a power outage left its headquarters without running water two weeks ago, according to four people with direct knowledge of the situation. Most of the bank’s 2,000 employees were sent home when the lights went off in Caracas on March 25 -- and haven’t been able to return since, said the people on condition of anonymity. The emergency group has been working from a library with the help of water tanks, focused on vital tasks to keep operations going, such as transactions between local banks and reserves, they added. The central bank’s situation underscores the disarray inside President Nicolas Maduro’s administration. Bathrooms have no water and the building has no air conditioning as a power crisis exacerbated water shortages in the Venezuelan capital amid a drought. Employees don’t know when they will be able to return to work. While a power rationing announced by Maduro late last month has so far exempted the capital, electricity has been intermittent, keeping vital pumps from reservoirs off line. Caracas, 900 meters (2,950 feet) above sea level, gets its water from the Tuy system of reservoirs, whose pumping stations require a minimum of 600 megawatts to operate. Venezuelans poured into the streets on Saturday, demonstrating against the near-total breakdown in public services and rallying behind National Assembly leader Juan Guaidó, who claims to be the country’s rightful president. (Bloomberg: https://www.bloomberg.com/news/articles/2019-04-09/without-water-venezuela-central-bank-said-to-send-workers-home)

 

Venezuela Needs Recovery Before Bond Talks, Hausmann Says

Ricardo Hausmann, professor at the John F. Kennedy School of Government at Harvard University and former Venezuela minister of planning, discusses opposition leader Juan Guaidó’ s plans to address the economic and humanitarian crisis in Venezuela. He speaks with Bloomberg's Vonnie Quinn and Amanda Lang on "Bloomberg Markets." (Bloomberg, https://www.bloomberg.com/news/videos/2019-04-05/venezuela-needs-recovery-before-bond-talks-hausmann-says-video)

 

Politics and International Affairs

Venezuelans demand power, water, Maduro's ouster

After weeks of power cuts and limited access to water, tens of thousands of Venezuelans took to the streets Saturday to back opposition leader Juan Guaidó and protest Nicolas Maduro, whom they accuse of wrecking the economy. Venezuelans, already suffering from hyperinflation and widespread shortages of food and medicine, say the crisis has worsened over the past month. That is when crippling nationwide power outages began to leave vast swaths of territory in the dark for days at a time, cutting off water supplies and cellphone service. Guaidó, head of the opposition-controlled National Assembly and recognized as Venezuela's legitimate head of state by most Western nations, had called for rallies on Saturday to mark the start of what he has billed as a new wave of "definitive" protests to oust Maduro. In Caracas, thousands of opposition supporters assembled at a main rally point in the eastern El Marques district. Protesters said their homes had been without water for days and many had taken to drawing it from unsanitary pipes or streams running off the Avila mountain overlooking Caracas. "We haven't just come to demand water and power. We've come to demand freedom and democracy," Guaidó said at the Caracas rally, surrounded by a cheering crowd. "We can't let ourselves become used to this. We can't put up with it. We aren't going to let these crooks keep hold of our country." While no protest-related violence was reported in Caracas, witnesses reported clashes between protesters and police in the steamy oil hub of Maracaibo. Demonstrators in the city, in the western state of Zulia, told Reuters that police had fired rubber bullet rounds and tear gas to disperse them. The National Assembly, on its Twitter account, said two of its lawmakers had been arrested and then released by authorities at the Maracaibo protest. The ruling Socialist Party staged a rival march in Caracas' center on Saturday, with mostly state workers clad in red shirts and red baseball caps, banging drums and dancing salsa. The U.S. government on Friday took another step in its efforts to force Maduro out, by imposing new sanctions on Venezuelan oil shipments, and promising "stronger action" against key ally Cuba for helping to keep his government afloat. (VOA: https://www.voanews.com/a/venezuelans-demand-power-water-maduro-s-ouster/4864903.html; France24: https://www.france24.com/en/20190407-venezuela-protest-juan-Guaidó-declares-escalation-maduro)

 

Guaidó to host world leaders in Venezuela

Venezuela’s interim President Juan Guaidó announced on Saturday an upcoming gathering of world leaders here to address what the opposition calls a humanitarian emergency in this nation. “We will have a great global encounter here in Venezuela of leaders to talk about the situation in Venezuela, about the humanitarian emergency, about the solution and the alternatives for change in Venezuela,” he told thousands of supporters in Caracas. The speaker of the opposition-controlled National Assembly provided no details about the date of the encounter and did not name the participants, but his press team said that more information would be provided in the coming days.
The rally Guaidó addressed in the capital was one of more than 350 planned demonstrations across Venezuela to denounce the leftist regime of Nicolas Maduro for a series of nationwide power blackouts, including one that lasted five days. (Latin American Herald Tribune,
http://www.laht.com/article.asp?ArticleId=2477093&CategoryId=10718)

 

U.S., Brazilian Vice Presidents discuss Venezuela pressure at White House

U.S. Vice President Mike Pence met with his Brazilian counterpart Hamilton Mourao at the White House on Monday to discuss sanctions and diplomatic efforts aimed at increasing the pressure on Venezuelan President Nicolas Maduro to exit. In his first-ever talks with Mourao, Pence aimed to encourage the former Brazilian general to use his experience and influence to urge Venezuelan military leaders - as well as China and Russia - to pull back on their support of Maduro, a White House official said. Mourao, who was a defense attaché in Caracas, "has a very unique perspective" when it comes to helping convince Venezuelan military leaders to switch sides, the White House official said, speaking on condition of anonymity. "He speaks with a unique credibility from within the region as a senior political leader with a military background. That voice is very important, and he is using that voice to advance the cause," the official said. Mourao is also well-positioned to confront Russia and China over their support of Maduro, since Brazil is a partner with the nations in the BRICS group of largest emerging markets economies, the official said. (The New York Times: https://www.nytimes.com/reuters/2019/04/08/world/americas/08reuters-venezuela-politics-usa-brazil.html)

 

Brazil's Bolsonaro says working with U.S. to sow 'dissent' in Venezuela army

Brazilian President Jair Bolsonaro said on Monday he is working with the U.S. government to sow dissent within the Venezuelan Army. Bolsonaro, during an interview with Jovem Pan radio, said that if there is a military invasion in Venezuela, he would ask to seek the counsel of Brazil’s National Defense Council and Congress on what, if any, action his country should take. “We cannot allow Venezuela to become a new Cuba or North Korea,” the right-wing president said. Bolsonaro said that if any military intervention deposed Nicolas Maduro, it is quite likely that the country would see guerrilla warfare waged by Maduro’s diehard backers and whomever took power. (Reuters: https://www.reuters.com/article/us-venezuela-politics-brazil/brazils-bolsonaro-says-working-with-u-s-to-sow-dissent-in-venezuela-army-idUSKCN1RK2JC)

 

U.S. military wary of China’s foothold in Venezuela

As U.S. President Donald Trump’s national security team mulls a military intervention to oust Venezuela’s strongman Nicolás Maduro, the Pentagon is watching China’s commercial and financial creep in the crisis-gripped nation with growing alarm. In an interview with Foreign Policy, Adm. Craig Faller, the four-star military officer who heads U.S. Southern Command, pointed to a Chinese disinformation campaign designed to blame the United States for the blackouts that devastated Venezuela in recent weeks. Maduro has himself publicly accused the U.S. Defense Department of causing the blackouts. Following the power failures, Beijing offered to help the Venezuelan government restore its grid. “China came out publicly, a state spokesman, implying the blackouts were attributable to U.S. cyberattacks,” Faller said during a recent trip to Washington, D.C. “That is just such a blatant lie. The blackouts are attributed to Maduro’s inept leadership, corruption, inattention to his people, and lack of concern for any humanity.” “I think the biggest threat to democracy and the way of life around the world is the trend that we see in China,” Faller said. He said China was trying to assert economic control in Venezuela by investing in infrastructure and providing hefty loans that Caracas would have difficulty paying back. Faller would not discuss specific U.S. plans for a military intervention to oust Maduro in favor of opposition leader Juan Guaidó. He said the military is “looking at a range” of options and “will be ready” for whatever decision the president makes. “We are on the balls of our feet,” Faller said. “The crisis in Venezuela could approach that degree by the end of this year if Maduro still remains in power. It’s that bad,” said Faller, who served previously as the director of operations at U.S. Central Command. (Foreign Policy: https://foreignpolicy.com/2019/04/08/us-military-wary-of-chinas-foothold-in-venezuela-maduro-faller-Guaidó-trump-pentagon/)

 

Pompeo to visit Venezuela border on South America tour

US Secretary of State Mike Pompeo will travel to the Venezuela border in Colombia to highlight the plight of refugees during a four-nation trip to Latin America, the State Department announced Monday. Pompeo will pay a brief visit on Sunday to the Colombian city of Cucuta after stops in Chile, Paraguay and Peru -- all four countries led by right-wing or center-right leaders favorable to the tough US approach on Venezuela. In Cucuta, Pompeo will "visit entities supporting Venezuelan refugees and assess the challenges due to the closed border," the State Department said in a statement. In Peru, the State Department said Pompeo on Saturday will discuss support for Venezuelan refugees as well as the country's role in leading the Lima Group -- the group of Latin American nations and Canada that meets on the crisis in Venezuela. (France24: https://www.france24.com/en/20190408-pompeo-visit-venezuela-border-south-america-tour)

 

Special Representative Abrams to discuss Venezuela crisis with Portuguese and Spanish officials

Special Representative for Venezuela Elliott Abrams will meet with Portuguese and Spanish officials in Lisbon and Madrid April 9-11 to discuss the deteriorating situation in Venezuela. The United States, Portugal, and Spain support a Venezuelan-led transition toward free and fair elections. The United States is committed to supporting the restoration of democracy in Venezuela, as outlined in their constitution and through the actions of Interim President Juan Guaidó and the National Assembly. (US State Department: https://www.state.gov/r/pa/prs/ps/2019/04/290958.htm)

 

EU must step up diplomacy on Venezuela crisis: Spain

EU and Latin American efforts to resolve the Venezuela crisis peacefully are too slow and must be accelerated, Spain's foreign minister Josep Borrell said Monday. In Montevideo on February 7, an International Contact Group of European Union and Latin American countries gave themselves 90 days to pave the way for new elections in Venezuela, which President Nicolas Maduro rejects. With less than a month before the deadline, the work of the Contact Group is "too slow", Borrell said at talks in Luxembourg with fellow EU foreign ministers. "We did not feel a sense of urgency," Borrell said of the last Contact Group talks Thursday in Ecuador. "After today's meeting (in Luxembourg), we all left convinced that the work must be speeded up." A diplomat added that the foreign ministers were "disappointed" with the lack of progress made by the contact group. In Ecuador, EU foreign policy chief Federica Mogherini last week reiterated her "firm rejection of the use of force to address the current crisis". She called for "the full restoration of the democratic constitutional order and the rule of law". Borrell raised the possibility of more sanctions against members of the Maduro government. (France24: https://www.france24.com/en/20190408-eu-must-step-diplomacy-venezuela-crisis-spain)

 

Mexico is open to mediating Venezuela crisis, president says

President Andres Manuel Lopez Obrador said Monday that Mexico was willing to serve as a mediator between the opposing sides in Venezuela after Nicolas Maduro announced that he was open to having a third-party help end the political crisis here. "Mexico has its doors open so that a peaceful path can be found to resolving Venezuela's conflict," Lopez Obrador, the founder and leader of the leftist National Regeneration Movement (Morena), said during his daily press conference at the National Palace. The president said Mexico proposed that the parties sit down and talk. "That's the best thing, find a peaceful way (out of) the conflict in Venezuela," Lopez Obrador, popularly known as AMLO, said. "We're willing to help so that a dialogue can take place," the president said, noting that this was the Mexican tradition in foreign policy. The president warned, however, that there must be "acceptance by the opposition group" before a dialogue could take place. "The two parties have to request it. Request it, and we will help. We have already said that there are very good diplomats in Mexico and we even talked about mediation by diplomats," Lopez Obrador said. AMLO said it would be a positive move to use Mexico as the location for any dialogue. On Saturday, Maduro asked Mexico, Bolivia, Uruguay and the Caribbean Community (CARICOM) to reactivate the Montevideo process, an initiative to promote dialogue between the opposing sides in Venezuela. The opposition, led by National Assembly Speaker Juan Guaidó, has said on numerous occasions that it would only back a dialogue that resulted in Maduro stepping down. (EFE: https://www.hoylosangeles.com/efe-3947552-15313250-20190408-story.html)

 

Maradona fined after dedicating win to Venezuela's Maduro

Diego Maradona has been fined for dedicating a recent victory by his Mexican club to Venezuelan President Nicolas Maduro, Mexico's football federation said on Monday (Apr 8).  The Argentine, who coaches Dorados de Sinaloa, had dedicated a 3-2 win over Tampico Madero to Maduro and Venezuela in a news conference at the end of last month. The body said in a statement that Maradona had been fined an unspecified sum for violating the federation's code of ethics which mandates political neutrality. Maradona had said he was dedicating the victory to Maduro and Venezuelans caught up in an economic crisis. He also criticized US President Donald Trump. (Channel News Asia: https://www.channelnewsasia.com/news/sport/football-maradona-fined-after-dedicating-win-to-venezuela-s-11424974)

 

OP-ED: Showdown of world powers in Venezuela enters dangerous, new phase, by Fred Kempe

The first major showdown of our new era of great power competition, unfolding with accelerating speed over the past ten weeks in Venezuela, has entered a dangerous new phase. How this drama turns out may mark the most significant test yet of the Trump administration’s credibility, following a highest-level chorus this week of President Donald Trump, Secretary of State Mike Pompeo and National Security Advisor John Bolton, who all declared – in one way or another – that Russia had to get out of the country. What raised the stakes was Russia’s well-publicized and provocative move on March 23 to land two planes with some 100 soldiers in Caracas. The ostensible reason for their arrival was to service Venezuela’s Russian-made S-300 air defense systems, which are said to have been damaged in recent energy blackouts. Other Russian military contractors and mercenaries are already believed to be providing security support for the Maduro regime. That was accompanied by this week’s decision of Maduro’s puppet National Constituent Assembly to strip interim President Juan Guaidó of his immunity. That raises the possibility, perhaps as early as this weekend, that the Maduro regime could arrest and imprison Guaidó. What concerns US officials is that Vladimir Putin may be laying the ground for making Venezuela the defining foreign policy debacle for President Trump in the same way Syria became that for the Obama administration. Though there is a great deal that differentiates Venezuela and Syria, what connects them is considerable: a weakened dictator, who would be much more likely to fall without Moscow’s support, a U.S. declared red-line that the Kremlin finds unconvincing, and a chance for Putin to shore up his global reputation at the expense of Washington –this time in the Western Hemisphere. As is so often the case in the Trump administration, there is also a personal element for a president who has refrained from the tough language toward Putin and Russia employed by the top US officials around him. Putin is betting big that Trump has neither the will nor a plan. (CNBC: https://www.cnbc.com/2019/04/05/showdown-of-world-powers-in-venezuela-enters-dangerous-new-phase.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, February 26, 2019

February 26, 2019


International Trade

Food and cleaning products have arrived at Margarita island’s El Guamache port

Port officials have announced that the CFS PANAVERA has arrived at Margarita island’s El Guamache port from Jamaica, carrying 53 containers, including 12 with food and 4 with personal care and health products. Cooking oil, rice, wheat flour, coffee, chocolate, pasta, peas, tomatoes, cosmetics and cleaning products are part of the arriving cargo. More in Spanish; (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=43456)

 

Logistics & Transport

US flying more reconnaissance flights off Venezuela, military sources say

The US military has flown an increased number of reconnaissance flights in international airspace off the coast of Venezuela during the last several days to gather classified intelligence about the embattled regime of Nicolas Maduro, according to two US defense officials. The officials would not detail which US military aircraft are being used, but the Navy and Air Force maintain several large fixed-wing aircraft capable of intercepting communications and monitoring the status of weaponry. The officials noted that the effort is limited to whatever the aircraft can gather by staying in international airspace. Several US military officials continue to emphasize there are no military options actively being considered for the Venezuela crisis. For now, the US military would only contemplate a response if US assets, personnel or the embassy were attacked. The US Federal Aviation Administration has issued a warning to US pilots about flying into and out of Venezuela because of "continued political instability and increasing tensions." (CNN: https://edition.cnn.com/2019/02/25/americas/venezuela-developments/index.html)

 

AVIOR halts flights to Aruba, Curaçao and Bonaire

Venezuela’s AVIOR airline has indefinitely suspended all flights to and from the islands of Aruba, Curaçao and Bonaire, following an order from this country’s National Civil Aeronautics Institute barring all air traffic by order of the Maduro regime. More in Spanish; (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/economia/avior-suspendio-sus-vuelos-a-aruba-curazao-y-bonaire)

 

Oil & Energy

Venezuela has US$ 500 million of crude sitting in ships — but nobody wants to buy it

Venezuela is running out of space to store its sanction-stained crude that few dare to buy, forcing it to reduce output at a time when the world is thirsty for heavy, sulfurous oil. Tankers holding 8.36 million barrels of Venezuelan crude worth upwards of a half-billion dollars are floating off the country’s coast as the nation struggles to find buyers for its oil following new U.S. sanctions in January. An armada of 16 ships holds cargoes belonging to state oil company PDVSA, CHEVRON, VALERO, and ROSNEFT, according to shipping reports and ship-tracking data compiled by Bloomberg. Oil ventures owned by PDVSA with ROSNEFT, CHEVRON, TOTAL and EQUINOR, whose upgraders convert tar-like Venezuelan crude into oil that refineries can process, reduced rates this week because they ran out of space to store crude, according to people with knowledge of the situation. With few buyers willing to take PDVSA’s oil, the alternative was to put some of that oil onto tankers to clear space and continue to operate at lower rates. The backlog of ships and the growing difficulty in keeping its oil upgraders running underscore the impact U.S. sanctions are having on PDVSA. Shipments to America, once Venezuela’s largest customer, have dried up. Without access to the U.S. financial system, on which many refiners and trading houses rely on to finance purchases, PDVSA is having trouble finding buyers outside of countries such as India and China, to whom it owes oil in payment for past loans. The PDVSA-Rosneft joint-venture PETROMONAGAS upgrader isn’t processing oil after running out of space to store their production, a person with knowledge of the situation said. PDVSA-CHEVRON’s PETROPIAR venture has reduced output for the same reason, other people said. PETROCEDENO, a PDVSA-TOTAL-EQUINOR venture, is running out of oil to process as a ban on sales of heavy naphtha to PDVSA has made it difficult to ship the heavy oil through pipelines from inland fields to the upgrader, another person said. (FORTUNE: http://fortune.com/2019/02/26/venezuela-crude-sanctions-ships/)

 

Venezuela oil sanctions slash Brent crude premium

The U.S. sanctions on Venezuela from late last month cut off more heavy and sour crude oil supply to the global market, leading to the lowest premium of quality light sweet Brent over heavier and sour crude grades because of limited heavy oil supply worldwide. At times when supply of various crude grades is not distorted, Brent usually trades at a premium of US$ 3-$4 a barrel over Dubai, but since January, the premium of Brent over Dubai has been consistently below US$ 1 a barrel. To top off the sanctions on Iran and the OPEC cuts, the U.S. sanctions on Venezuela at the end of January further tightened the heavy crude market, and traders expect the market to tighten even more in the coming months. Despite initial expectations that the Venezuelan oil that would have gone to the U.S. could easily make way to Asia, the nature of the U.S. sanctions have effectively turned the U.S. import ban into financial sanctions applicable globally. In the middle of February, the April Brent premium to Dubai Exchange Futures for Swaps (EFS)—generally seen as the spot market sentiment of Brent-linked and Dubai-linked crude grades—fell to the lowest on record, since S&P Global Platts started publishing data about the spread in August 2011. (Oil Price: https://oilprice.com/Latest-Energy-News/World-News/Venezuela-Oil-Sanctions-Slash-Brent-Crude-Premium.html)

 

Commodities

Fishing halted on Venezuelan coast

In an unusual move, Venezuelan military are stopping fishermen from setting sail from docks in Vargas state near Caracas. More in Spanish: (El Universal, http://www.eluniversal.com/caracas/33938/refuerzan-muelles-pesqueros-de-vargas-tras-prohibicion-de-zarpe)

 

Economy & Finance

National Assembly asks CITIGROUP for 90-day extension on gold foreclosure

Venezuela’s opposition led National Assembly has asked CITIGROUP for a 90-day extension before it forecloses on Venezuelan gold reserves held with the Bank of England as collateral on a US$ 1.1 billion debt. The request was made by the Assembly’s standing Finance Committee, headed by congressman Angel Alvarado, who said CITIGROUP is “willing to cooperate”. More in Spanish: (El Universal, http://www.eluniversal.com/economia/33859/plazo-de-90-dias-pide-an-a-citigroup-para-cobrar-deuda-en-oro)

 

Evolving Venezuela sanctions pose problems for banks

Recently imposed sanctions on Venezuela have posed new compliance risks for U.S. and international financial institutions as they seek to untangle business ties between the two countries to meet evolving requirements. The Treasury Department has ramped up sanctions with more designations and guidance in recent weeks. Gradually increasing U.S. measures targeting the government of Venezuela, and the country’s state-owned oil giant have made banks more reluctant to touch accounts that might relate to Venezuela for fear of sanctions violations. The scenario is complex because of the economic and business connections between the two countries has a foundation in the oil-and-gas industry, which can affect automobile and heavy machinery manufacturing, as well as elements of insurance and finance. Intricacies stemming from the sanctions are particularly disruptive for the banking industry, said Daniel Gutierrez, who chairs the anti-money-laundering compliance committee at the Florida International Bankers Association. In the case of Venezuela, where the list of the Maduro government officials is broad and unclear, and where PDVSA has many subsidiaries and tends to outsource to third-party vendors, banks are finding they need to pull more resources to holistically analyze each instance on a case-by-case basis. If not carefully managed, banks could face penalties and reputational damage. (The Wall Street Journal: https://www.wsj.com/articles/evolving-venezuela-sanctions-pose-problems-for-banks-11551143320)

 

Politics and International Affairs

UN Security Council to meet on Venezuela after deadly clashes

The UN Security Council is due to meet today to discuss Venezuela, following weekend violence over a failed opposition bid to bring in humanitarian aid. The United States requested the meeting to be held in open session this evening. The request came as US Vice President Mike Pence travelled to Colombia to meet opposition leader Juan Guaidó in a show of support for his bid to replace President Nicolás Maduro. The Security Council is divided over Venezuela. The U.S. and many Western and Latin American nations back opposition leader Juan Guaidó as interim president, while Russia, China and other countries support President Nicolas Maduro and oppose any interference in Venezuela's internal affairs. (RTE: https://www.rte.ie/news/2019/0226/1032860-venezuela/; ABC News: https://abcnews.go.com/International/wireStory/latest-germany-urges-pressure-maduro-61299953

 

Lima Group asks International Criminal Court to provide assessment of Venezuela situation

The Lima Group on Monday asked the International Criminal Court (ICC) to make an assessment of the situation in crisis-torn Venezuela, proposing that Venezuela's partners help organize "free elections" in the country. "We have decided to turn to the International Criminal Court with a request to take into account the grave humanitarian situation in Venezuela, the criminal violence of Nicolas Maduro's regime against civilians and the denial of access to international aid, which is a crime against humanity", the statement said. The Lima Group of 14 countries was created in 2017 and currently seeks to end the political crisis in Venezuela. The group includes Argentina, Brazil, Canada, Colombia, Costa Rica, Chile, Guyana, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru and Saint Lucia. The majority of the organization's member states are backing Guaidó. (SPUTNIK: https://sputniknews.com/latam/201902261072735401-lima-group-venezuela-intl-court-situation/)

 

Guaidó and Pence agree to tighten noose on Maduro, as Guaidó says he will return to Venezuela

US Vice President Mike Pence announced fresh US sanctions against allies of Nicolas Maduro on Monday, after meeting with Latin American leaders including Venezuela's interim president Juan Guaidó in Colombia. "The tragic events of this past weekend have only steeled the resolve of the United States of America to stand with you, to stand with freedom-loving people in Venezuela," Pence told Guaidó at the Lima group meeting in Colombia's capital Bogota. Pence also urged other Latin American countries to freeze the assets of PDVSA, Venezuela's state-owned oil company, and to restrict visas for officials close to Maduro. "Effective today, the United States will impose additional sanctions on regime officials, including three border state governors implicated in last weekend's violence and a member of Maduro's inner circle," he said, adding that the US stands with Guaidó "100 percent". Guaidó, who is recognized by most Western nations as Venezuela's legitimate leader, called on all foreign powers "to consider all options in ousting Maduro". "Just days ago, as the world watched, the tyrant in Caracas danced as his henchmen burned truckloads of food and medicine, and murdered civilians," Pence said, and added that the U.S. will stand by Guaidó until freedom is restored and promised tougher measures against this nation soon. "In the days ahead ... the United States will announce even stronger sanctions on the regime's corrupt financial networks," Pence said. "We will work with all of you to find every last dollar that they stole and work to return it to Venezuela." Pence also said the U.S. is sending another US$ 56 million to Venezuela's neighbors to help them cope with the influx of migrants from Venezuela. If Maduro remains in charge of Venezuela, Pence said he expects it will result in two million more refugees. The European Union on Sunday condemned the government's use of violence and armed civilians to block the aid entry, while UN Secretary-General Antonio Guterres said he was "shocked and saddened" by the civilian deaths. During Monday's meeting, Guaidó, who was sitting next to Pence, asked for a moment of silence for those who were killed over the weekend. Guaidó warned that "indulging" Maduro "would be a threat to all of America," while Colombia President Ivan Duque called for "more powerful and effective" pressure on the socialist leader.  Pence reiterated that "all options are on the table" — a phrase that has been repeated by Trump administration officials since the U.S. recognized Guaidó as the legitimate leader of Venezuela in January. Guaidó has adopted similar language and urged the Lima Group to consider "all options" in ousting Maduro. But both Guaidó and Trump administration officials have stopped of calling for U.S. troops on the ground. In a statement following Monday's meeting, the Lima Group demanded that the Maduro leave his post immediately and make way for a democratic transition that included free elections. Guaidó accused Maduro's government of turning the country into "the sanctuary of terrorists." Having defied a government travel ban to got to Colombia on Friday, Guaidó said he would return home "this week," with the Lima Group warning he faced "serious and credible threats" from the regime. Maduro has told ABC News that Guaidó must “face justice” if he decides to return because he had a Supreme Court order against leaving the country. (NPR: https://www.npr.org/2019/02/25/697638242/pence-on-venezuela-we-will-keep-standing-until-your-libertad-is-restored; Al Jazeera: https://www.aljazeera.com/news/2019/02/ramps-pressure-venezuela-maduro-sanctions-190225173549450.html; Reuters, https://www.reuters.com/article/us-venezuela-politics/venezuelas-Guaidó-says-all-options-open-after-maduro-blocks-aid-idUSKCN1QC091;


 

US sanctions pro-Maduro governors who blocked international aid

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated four officials aligned with the illegitimate regime of former President Nicolas Maduro. This action, taken pursuant to Executive Order (E.O.) 13692, targets the Governors of four Venezuelan states involved in endemic corruption and in blocking the delivery of critical humanitarian aid, thereby exacerbating the ongoing humanitarian crisis caused by the illegitimate Maduro regime. “The illegitimate Maduro regime’s attempts to blockade international aid intended for the Venezuelan people are shameful. Treasury is targeting four state governors aligned with former President Maduro for standing in the way of severely needed humanitarian assistance and prolonging the suffering of the Venezuelan people,” said Treasury Secretary Steven T. Mnuchin. “The United States fully supports the efforts of Interim President Juan Guaidó to address the endemic corruption, human rights abuses, and violent repression that has become the hallmark of the illegitimate Maduro regime, and looks forward to the restoration of a democratically elected government for the people of Venezuela.” As a result of today’s action, all property and interests in property of these individuals, and of any entities that are owned, directly or indirectly, 50 percent or more by these individuals, that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. OFAC’s regulations generally prohibit all dealings by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked or designated persons. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2475341&CategoryId=10717)

 

Maduro extends deadline for US Embassy closure

On Saturday, Nicolás Maduro for a second time extended the deadline for shutting down the US Embassy in Caracas. US authorities say this extensión is now for 30 more days.  Maduro’s Foreign Minister Jorge Arreaza claimed on Twitter that both countries had agreed to establish interest section offices in Caracas and Washington for migratory and bilateral affairs. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/politica/gobierno-nacional-extiende-el-plazo-para-el-cierre-de-la-embajada-de-eeuu-en-caracas)

 

Maduro responsible for safety of Colombian embassy staff: minister

Nicolas Maduro is responsible for the safety of Colombian diplomats in Venezuela, Colombia’s foreign minister said on Saturday, after Maduro formally broke off relations with Bogota. “Colombia holds the usurper Maduro responsible for any aggression or violation of the rights of Colombian officials in Venezuela,” Foreign Minister Carlos Holmes Trujillo said. Luis Almagro, secretary general of the Organization of American States, said in the same statement that Maduro, socialist, could not break relations with Colombia because he is not Venezuela’s legitimate president. (Reuters, https://www.reuters.com/article/us-venezuela-politics-colombia-maduro/maduro-responsible-for-safety-of-colombian-embassy-staff-minister-idUSKCN1QC0UL)

 

In Colombia, Pence lets Guaidó down easy on use of military force against Maduro

Vice President Mike Pence flew into Colombia on Monday as an anxious hemisphere waited to hear if the leader from America would back the Venezuelan opposition’s call to use “force” to bring humanitarian aid into the country. Opposition leader Juan Guaidó, who was barred from leaving Venezuela, had secretly crossed the border amid violent clashes between demonstrators and security forces for a special meeting Monday with Pence and regional leaders. What Pence ended up telling the young Venezuelan leader was not necessarily what he traveled so far to hear: Pence told Guaidó the Trump administration still believes in a peaceful resolution. “We got a long way to go,” Pence said he told him. “I made it clear to President Guaidó that we’re going to continue to call on allies to join with us. We’re going to continue to isolate Maduro economically and diplomatically until democracy is restored.” Many in the region breathed a sigh of relief after fearing that Pence was going to support the call for military action. Diplomats acknowledge that the strongest steps have already been taken and fear is growing that momentum against the government of Nicolas Maduro may be stalling. But governments that oppose using force say there are diplomatic options yet to be considered. One diplomat whose government opposes any kind of military option said there have been conversations with U.S. officials about forcing Venezuelan diplomats loyal to Maduro to choose between remaining in their countries or returning home. Pence said ultimately it would be up to Trump, in consultation with allies, to decide under what conditions a military option would be appropriate. Pence said Guaidó wanted to make sure that all options remained on the table. “I assured him that they were, but we hope for better,” Pence said. “We hope for a peaceful transition.” Using military force would be a drastic escalation, but José Cárdenas, who served in the National Security Council under George W. Bush and regularly speaks with Trump administration officials, said it needs to be discussed. “We can’t just walk away,” Cárdenas said. “In order to sustain the pressure, you have to keep one-upping what the government does.” (The Miami Herald: https://www.miamiherald.com/news/nation-world/world/americas/venezuela/article226784504.html)

 

US increasingly isolated as allies warn against use of military force

US vice-president Mike Pence has repeated a veiled threat of military intervention in Venezuela, but Washington appeared increasingly isolated in its willingness to contemplate using force to oust Nicolás Maduro. Both European powers and some of Donald Trump’s key Latin American allies – all of whom have recognized opposition leader Juan Guaidó as Venezuela’s legitimate leader – warned that they would oppose sending troops into the country. Guaidó had for weeks insisted his movement was focused on peaceful, democratic change. But after the opposition failed in a weekend bid to defy Caracas and bring aid into the country, he called on the international community to “keep all options open”. Speaking at an emergency summit of regional leaders in the Colombian capital Bogotá, Pence renewed the threat of intervention, describing Maduro as “a usurper”, and calling for a global push to oust him. “To leaders around the world: it’s time. There can be no bystanders in Venezuela’s struggle for freedom,” he said. “We hope for a peaceful transition to democracy, but as President Trump has made clear, all options are on the table.” But beyond the US, few appear willing embrace the prospect of violence.  Brazil’s vice-president, retired general Hamilton Mourão, said on Monday that under no circumstances would his country allow the United States to intervene militarily from Brazilian territory, even though the country’s rightwing president Jair Bolsonaro has previously vowed to do “everything for democracy to be re-established” in Venezuela. Colombian president Iván Duque has also now ruled out intervention, according to sources in his administration. Chile and Peru were also among other regional powers opposing military action on Monday. 'Let's hope that the pressure of the international community, dialogue and prudence will prevail,' said Panamanian President Juan Carlos Varela, who likened the crisis in Venezuela to what his country faced in the run up to the 1989 U.S. invasion to remove dictator Manuel Noriega. 'Although the circumstances are similar, we must have the capacity to find a solution different than the one used back then.' There was similar concern across the Atlantic, where European nations including Spain and Germany made clear they considered the deployment of troops a line that should not be crossed. Spain would 'roundly condemn' use of force in Venezuela: “Not every option is on the table,” the country’s foreign minister, Josep Borrell, said in a blunt rebuke to supporters of intervention. The European Union’s foreign policy chief, Federica Mogherini, insisted there could be no military solution to a political crisis. The Lima group also said credible threats have been made against the life of Venezuelan opposition leader Guaidó and his family, adding that Nicolas Maduro was responsible for Guaidó’s safety. “We want to hold the usurper Maduro responsible for any violent action against Guaidó, against his wife and against their relatives,” said Colombian Foreign Minister Carlos Holmes Trujillo, speaking on behalf of the group. (The Guardian: https://www.theguardian.com/world/2019/feb/25/venezuela-mike-pence-maduro-Guaidó; Daily Mail: https://www.dailymail.co.uk/news/article-6743013/Venezuelas-second-command-flies-two-children-China-using-wifes-surname.html; Bloomberg, https://www.bloomberg.com/news/articles/2019-02-25/venezuela-neighbors-push-back-against-military-answer-to-crisis)

 

Russia accuses U.S. of preparing military intervention in Venezuela

A top Russian security official on Tuesday accused the United States of deploying forces in Puerto Rico and Colombia in preparation for a military intervention in Venezuela to topple Moscow’s ally, President Nicolas Maduro.  “...The United States is preparing a military invasion of an independent state,” Nikolai Patrushev, secretary of the Russian Security Council, was quoted as saying in an interview. “The transfer of American special operations forces to Puerto Rico, the landing of U.S. forces in Colombia and other facts indicate the Pentagon is reinforcing its troops in the region in order to use them in an operation to remove ... Maduro from power.” Patrushev said in the interview that Washington had asked Moscow for consultations on Venezuela and that Russia had agreed, but that U.S. officials had repeatedly postponed them under false pretexts. U.S. officials have previously dismissed Russian allegations about U.S. plans for Venezuela as baseless “propaganda.” (Reuters: https://www.reuters.com/article/us-venezuela-politics-russia/russia-accuses-us-of-preparing-military-intervention-in-venezuela-idUSKCN1QF14K)

 

China says hopes world provides 'constructive' help to Venezuela

China hopes that the international community can provide “constructive” help to Venezuela based on respect for the country’s sovereignty, the foreign ministry said on Monday, after Venezuelan troops repelled foreign aid convoys. China hopes Venezuela can remain peaceful and calm, the Foreign Ministry said, and reiterated Beijing’s opposition to foreign interference in Venezuela’s internal affairs or the use of “so-called ‘humanitarian aid’ for political aims”. (Reuters, https://www.reuters.com/article/us-venezuela-politics-china/china-says-hopes-world-provides-constructive-help-to-venezuela-idUSKCN1QE0YW)

 

Mexico President says committed to non-intervention on Venezuela

Mexico's president on Tuesday said he remained committed to a policy of non-intervention on Venezuela a day after U.S. Vice President Mike Pence urged Mexico to recognize opposition leader Juan Guaidó as Venezuela's rightful president. President Andres Manuel Lopez Obrador at his regular morning news conference urged all sides in Venezuela to seek a peaceful solution to the crisis and said the United Nations should be used to help resolve a dispute over humanitarian aid. (The New York Times: https://www.nytimes.com/reuters/2019/02/26/world/americas/26reuters-venezuela-politics-mexico.html)

 

Sanders warns against intervention in Venezuela, stops short of calling Maduro a 'dictator'

Sen. Bernie Sanders on Monday night steered clear of calling Venezuelan leader Nicolas Maduro a "dictator", despite criticizing Maduro's government for failing to hold democratic elections. "It's fair to say the last election was undemocratic, but there are still democratic operations taking place in that country," Sanders said after being asked by CNN's Wolf Blitzer why he wouldn't use the term to describe Maduro. "What I am calling for right now is internationally supervised free elections."  Sanders was asked about his opposition to U.S. intervention in Venezuela. He responded by saying he believed there should be an “international humanitarian effort” to improve the lives of Venezuelans and expressed that their last election was “not free and fair.” (CNN: https://edition.cnn.com/2019/02/25/politics/bernie-sanders-venezuela-maduro/index.html; FOX: https://www.foxnews.com/politics/bernie-sanders-refuses-to-call-venezuelas-maduro-dictator-says-democratic-operations-taking-place)

 

UN’s Michelle Bachelet condemned violence at Venezuela’s borders

Michelle Bachelet, the UN High Commissioner for Human Rights, has condemned what she called the excessive use of force by Venezuelan security forces and pro-regime groups on the borders with Colombia and Brazil, causing at least 4 dead and over 300 wounded. She pointed to “deplorable scenes” and asked the Maduro regime to “stop using excessive force against unarmed protesters and ordinary citizens”. She asked the regime to stop pro-government groups involved in violent actions. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/internacional/michelle-bachelet-condeno-la-violencia-en-las-fronteras-de-venezuela)

 

European Union condemns Maduro regime’s use of “armed groups” to “intimidate civilians

The European Union has condemned violence in Venezuela and the Maduro regime’s use of “armed groups” to block the entrance of humanitarian aid. “We reject the use of irregular armed groups to intimidate civilians and legislators who seek to distribute aid”. More in Spanish: (El Universal, http://www.eluniversal.com/politica/33966/union-europea-condena-que-gobierno-recurra-a-grupos-armados-para-intimidar-civiles)

 

Uncertainty at Colombia-Venezuela border bridge after clashes over aid

Dawn broke on Sunday at the Simon Bolivar bridge, the main border crossing point between Colombia and Venezuela, amid a tense and uncertain calm after a clash between Venezuelans – many of them shouting and calling for their country’s “freedom” – who were trying to bring humanitarian aid into their country and authorities taking orders from Caracas. There were sporadic clashes between hooded protesters and police, supported by armed civilian "colectivos" on Sunday on the Venezuelan side of the border. On the order of Colombian President Ivan Duque, the bridge linking the Colombian city of Cucuta with Venezuela’s San Antonio del Tachira was closed for two days while the damage resulting from the failed aid delivery attempt is evaluated. The area near the bridge was cordoned off and is being guarded by Colombian soldiers, police and some members of the ESMAD anti-riot squadron. In addition, the bridge is being blocked on the Venezuelan side by a tanker truck, with a number of masked men deployed in the area along the Tachira River on the Colombian side. Scores of Venezuelans who managed to slip across the border to get aid were trapped there as Venezuelan authorities closed it. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2475334&CategoryId=10717; http://www.laht.com/article.asp?ArticleId=2475324&CategoryId=10717)

 

In Venezuela, bows and arrows against tanks, four people reported slain on Venezuela-Brazil border

Nicolas Maduro’s forces in Venezuela armed with tanks and live fire attacked an indigenous tribe armed only with bows and arrows when they tried to stop a convoy of humanitarian aid from Brazil. One woman from the Pemon tribe was killed and 15 were wounded, but the tribe took several soldiers, including three lieutenants and a sergeant captive. The battle took place in the remote Gran Sabana region near the Brazilian border. The Pemon were successful at stopping the anti-riot troops in their effort to block food and supplies from entering the country through Brazil near the village of Kumarakapay, about 50 miles north of the border. The soldiers tried to breach barricades set up by residents about 6 a.m., said Jorge Perez, mayor of the Gran Sabana municipality. Marcel Perez, a 30-year-old Pemon, said in an interview in Pacaraima, Brazil, that he and others had gathered at dawn for a peaceful protest to prevent the military from reaching the border. “We made a blockade, without any weapon but our traditional bows and arrows,” he said. “They had tanks, buses and a lot of soldiers. And, so they decided to shoot at us with live bullets.” Five armored vehicles passed by, spewing tear gas that set fire to a small shack, the mayor said. Those wounded more seriously were allowed to cross on ambulances into Brazil so they could be treated in the regional center of Boa Vista. Perez said he was beaten with sticks a few hours later by members of a pro-Maduro gang while taking other wounded people to a hospital in Santa Elena de Uairen, on the Venezuelan side. Police said Zoraida Rodriguez, 45, was killed and 15 people were wounded. A Venezuelan general was negotiating with the tribe for the return of three lieutenants and a sergeant captured by the indigenous forces. The Venezuelan Congress with its opposition majority reported on Saturday that by 4:00 pm, four people had been slain while more than 20 suffered bullet wounds on Venezuela’s border with Brazil. (WND: https://www.wnd.com/2019/02/in-venezuela-bows-and-arrows-against-tanks/#06mCVSLVHotB8Xep.99; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2475312&CategoryId=10718; Reuters, https://www.reuters.com/article/us-venezuela-politics-aid-brazil/two-people-killed-in-venezuelan-town-near-brazil-in-clashes-over-aid-idUSKCN1QC0U5)

 

Attacked and powerless, Venezuela soldiers choose desertion

A high-stakes plan by the Venezuelan opposition to bring humanitarian aid into the country floundered Saturday when troops loyal to Maduro refused to let the trucks carrying food and medical supplies cross, but it did set off a wave of military defections unlike any seen yet amid the country's mounting crisis. Over 270 mostly low-ranking soldiers fled in a span of three days, Colombian immigration officials said Monday. In interviews with The Associated Press, nine National Guard soldiers described the day that they were ordered by commanders to stop the humanitarian aid from entering Venezuela. Fearful of being jailed, many complied with orders and admitted to launching tear gas at protesters. Two said they were part of a failed plot to get the aid in. All fled after making unplanned, split-second decisions with only the uniform on their backs. While interim president Juan Guaidó has proposed amnesty to military officers who back him, the low-ranking soldiers who have defected say breaking ranks with Maduro is all but impossible. Anyone who shows the slightest hint of disapproval risks arrest, they said, and jail has become increasingly synonymous with torture. Even those who wanted to see the aid brought in, followed orders to repress citizens. As Saturday grew increasingly tense, protesters threw rocks and gasoline bombs at him. One said he responded by throwing tear gas at them to protect himself. Others at the home also had evidence of the resistance they faced that day: Torres still had blood caked beneath the skin on his nose from protesters kicking him on the ground after he surrendered to Colombian authorities. A young woman had a scratch across her cheek that she said came from a rock thrown by protesters. During the clashes, armed pro-Maduro groups known as "colectivos" fired indiscriminately, and several of the soldiers said they feared being shot themselves. National Guard troops are equipped with crowd-control devices like rubber bullets and tear gas but do not carry any regular firearms. Many said they worry their wives and children will face repercussions and they are concerned about how they will make ends meet. Nearly all the defectors would support a foreign intervention in Venezuela and join in the fight. Floating ideas among each other, several of the defectors said they believe the best way forward is for more troops to desert and help form a resistance from abroad. Some envisioned an intervention led solely by Venezuelans, while others are convinced it can only be done with the help of an international coalition. All said they don't see themselves as traitors, but rather as troops intent on restoring Venezuela's democracy. (Fox News: https://www.foxnews.com/world/attacked-and-powerless-venezuela-soldiers-choose-desertion)

 

Venezuela ex-spy chief reveals Maduro’s ties to Hezbollah, drugs

Former head of Venezuela’s intelligence services General Hugo Carvajal revealed powerful ties between the administration of Nicolás Maduro and the Hezbollah terrorist group, as well as wide-spread corruption and drug activity, the New York Times reported on Thursday. The nefarious activities were directed by Maduro himself as well as Interior Minister Néstor Reverol and former vice-president Tareck El Aissami. Allegedly, those who were meant to combat drugs were engaged in trafficking them, Carvajal said. El Aissami was not only a drug kingpin, said Carvajal, but also had connections to Hezbollah, and attempted to arrange Hezbollah terrorists to work with the Revolutionary Armed Forces of Colombia [FARC] through Venezuela. In a meeting that took place in 2009 Hezbollah terrorists met El Aissami and Carvajal in Syria and gave the two Venezuelan state representatives three assault rifles as gifts. The meeting involved Venezuelan diplomat Ghazi Nasr al-Din, who was stationed in Syria at the time.  Labeled “a Hezbollah supporter” by the department of Treasury, Nasr al-Din is wanted by the FBI. (The Jerusalem Post: https://www.jpost.com/OMG/Venezuela-ex-spy-chief-reveals-Maduros-ties-to-Hezbollah-drugs-581615)

 

UNIVISION journalists freed after being detained at Venezuelan presidential palace

The UNIVISION network said six of its staffers, including veteran anchorman Jorge Ramos, were briefly detained at the presidential palace in Caracas, Venezuela, on Monday. Ramos and the crew members were released a little less than three hours after the episode began. Daniel Coronell, UNIVISION's president of news, tweeted that "Jorge Ramos and his team have been released and are on route to their hotel." In Caracas, the Venezuelan National Union of the Press Workers also confirmed that "the UNIVISION team has been freed." The network said Ramos was in Caracas to interview Nicolas Maduro. UNIVISION spokesman Jose Zamora said Maduro objected to Ramos' questions. "Very shortly into the interview, Maduro didn't like the line of questioning, and they stopped the interview," Zamora said. He said government aides confiscated the network's equipment. UNIVISION's news executives were able to find out what happened, he said, because "Jorge managed to call us." But "in the middle of the call, they took his phone away. UNIVISION is the leading Spanish-language television network in the United States, with millions of loyal viewers. The network immediately contacted the US State Department. Kimberly Breier, the Assistant Secretary of State for Western Hemisphere Affairs, tweeted out, "We insist on their immediate release; the world is watching." After the team was released, UNIVISION broke into programming for a special report — with Ramos joining by phone. He said Maduro "got up from the interview after I showed him the videos of some young people eating out of a garbage truck." "They interrogated us. They put us in a security room. They turned off the lights," he said. Ramos called the episode a "violation." He said Maduro's aides still had the tapes. "They have stolen our work and are trying to keep what is happening from airing," he said. Pedro Ultreras, a member of the UNIVISION team in Venezuela, tweeted late Monday that immigration officials told the journalists that they will be expelled from Venezuela and must leave Tuesday morning. "The hotel we are staying in is surrounded by Venezuelan authorities, we cannot go outside," he said. Ramos, a veteran anchor born in Mexico, said he asked Maduro about the lack of democracy in Venezuela, the torture of political prisoners and the country’s humanitarian crisis. Mexico’s Foreign Minister Marcelo Ebrard also tweeted his government’s protest at the events. (CNN: https://edition.cnn.com/2019/02/25/media/univision-venezuela-jorge-ramos/index.html; Reuters: https://www.reuters.com/article/us-venezuela-politics-univision/venezuela-to-deport-univision-team-after-maduro-shown-garbage-eating-video-idUSKCN1QF05F

 

Maduro's right-hand man sends his two youngest children to China

Venezuela's second-most powerful man has sent his children to China amid the possibility Nicolás Maduro's government will crumble.  Diosdado Cabello, known to be the second most-powerful man in Venezuela behind President Nicolás Maduro, sent two of his three children to China. Airline boarding passes showed different names for Cabello's daughter, Daniella Cabello, and his youngest son, Tito Cabello, raising suspicions because his wife's surname - Contreras - was on the boarding passes. Both children boarded the Havana to Beijing flight as Desiree Contreras and Tito Contreras, apparently using their mother's surname to hide their identities. The siblings left Havana on Friday and made it to Moscow on Saturday before connecting to a Beijing-bound flight that touched down Sunday- Daniella Cabello, 22, boarded the plane with a US-issued passport as Desiree (her middle name) Contreras while his son Tito Cabello, 17, used a Ugandan passport and used the name Tito Contreras.  The reservation system indicates they're both scheduled to return to Havana on a one-stop flight March 12. In recent days, it has been reported that several Maduro loyalists successfully arranged to have their immediate family members flee what once was considered one of the most economically powerful countries in South America. (Daily Mail: https://www.dailymail.co.uk/news/article-6743013/Venezuelas-second-command-flies-two-children-China-using-wifes-surname.html)

 

OP-ED: Dictator Maduro survived a tough week, but his problems are about to get worse

The conventional wisdom in some quarters is that Venezuelan dictator Nicolás Maduro has proved in recent days that he’s in firm control of his military goons and that he will be able to stay in power indefinitely. The conventional wisdom may be wrong. Maduro’s problems will get worse. With or without a military intervention, his illegitimate regime is cornered, isolated and increasingly unsustainable. Maduro danced in public on Feb. 23, but that image is going to haunt him. First, Maduro’s international isolation will continue to grow. Interim president Juan Guaidó is reportedly planning to return to Venezuela. If he’s arrested by the Maduro regime, we may see even stiffer international sanctions. Second, the Maduro regime’s foreign income will dwindle in coming months, as U.S. and international sanctions kick in. Third, Maduro does not have a superpower that will be willing to support him an at any cost.  Fourth, it’s unclear for how much longer Venezuela’s armed forces will stand behind Maduro. Most of the uniformed Venezuelan soldiers who blocked humanitarian aid and fired on unarmed opposition volunteers at the Colombian-Venezuelan border on Feb. 23 were not members of the army or National Guard. They were part of Maduro’s paramilitary forces. Fifth, while no U.S. or international military intervention is likely anytime soon, there might be growing pressure for a United Nations intervention if Venezuela’s humanitarian crisis continues to deteriorate. Virtually all Latin American and European countries that support Guaidó — including Colombia and Brazil — said Monday that they won’t back a U.S. or international military intervention. But if Venezuela’s humanitarian crisis continues to worsen, that could change. Barring a miracle Maduro’s political future doesn’t look good. He will be under growing domestic and foreign pressure to agree to a political solution that will most likely include his departure. By Andres Oppenheimer (The Miami Herald: https://www.miamiherald.com/news/local/news-columns-blogs/andres-oppenheimer/article226777084.html)

 

OP-ED: What’s next for Venezuela?

Scenes of destruction and despair were on full display worldwide over the weekend as the Maduro regime used force to deny entry into Venezuela of desperately needed humanitarian assistance, leading to increasing speculation about what comes next. Or, rather, will the United States invade Venezuela to topple the despotic regime that has ruined Latin America’s once-wealthiest economy and created Latin America’s worst humanitarian crisis in many years. The threat of invasion has increasingly been implied, with senior U.S. administration officials suggesting routinely that “all options are on the table.” Indeed, they are, as they always are in the conduct of foreign affairs. But the implication is clearly that if Maduro and his inner circle refuse to depart, then the use of force may be employed. However, as bad as the situation continues to get in Venezuela an armed response is unlikely. First, there is no casus belli that would justify a U.S.-led invasion. Nor is there a mandate from the United Nations or OAS. The doctrine of Responsibility to Protect is not sufficiently developed or accepted at this point, and circumstances do not yet justify its application to Venezuela in any event. Latin American nations, including those that support strong actions against Maduro, have publicly indicated little support for armed intervention, and, despite the rhetoric, there does not appear to be much enthusiasm in Washington for such a step. What can be anticipated is that there will be further intensified pressure on the regime. In addition to efforts to entice regime officials, including the military, to shift their loyalty from Maduro to Guaidó, the United States, in coordination with other nations, looks to amplify asset seizure and forfeiture. Collectively, they aim to deny new and cancel existing visas for regime officials and their families and increase humanitarian assistance. All these activities will further the goal of turning Maduro into an international pariah, and, it is hoped, create conditions that will ultimately see him turfed from office. The key is to keep the Maduro regime on the defensive. There are no guarantees, and nobody can say when the dam will ultimately break—or if it will break. Meanwhile, Venezuelans face an unpleasant choice between protesting and exposing themselves to the excesses of the regime, hunkering down, or joining the millions of Venezuelans who have already left their nation behind. It is a tragedy lain squarely at the feet of Chavismo. By Eric Farnsworth. (The National Interest: https://nationalinterest.org/feature/what%E2%80%99s-next-venezuela-45577)