January 15, 2019

International Trade

Venezuela goes to WTO to contest Colombia fuel import rules

Venezuela has launched a complaint at the World Trade Organization to challenge Colombia’s restrictions on the distribution of liquid fuels imported from Venezuela, a filing published by the WTO showed on Monday. Venezuela said Colombia was illegally discriminating against its fuel exports by imposing “a series of distribution and licensing measures, and product surcharges, market access measures and pricing policies” on Venezuelan fuel. Colombia has 60 days to settle the dispute or Venezuela could ask the WTO to adjudicate, although the ability of the Geneva-based body to keep refereeing such disputes is in doubt due to a U.S. block on judicial appointments. (Reuters, https://www.reuters.com/article/us-venezuela-colombia-wto/venezuela-goes-to-wto-to-contest-colombia-fuel-import-rules-idUSKCN1P8256)

 

Oil & Energy

U.S. considers harshest Venezuela sanctions yet, on oil

The U.S. is evaluating whether to impose tougher sanctions against Venezuela’s military and vital oil industry, a senior Trump administration official said Monday, as it seeks to ratchet up pressure on authoritarian leader Nicolás Maduro to hold free and fair elections. The Trump administration is considering a range of measures including curtailing the flow of Venezuelan oil to the U.S., the official said, in what could be the harshest blow to the country's money supply. No final decision has been made. (The Wall Street Journal: https://www.wsj.com/articles/u-s-considers-harshest-venezuela-sanctions-yet-on-oil-11547510165)

 

Dominican Republic moving to take back Venezuela shares in refinery

The Dominican Today news site reported that the Dominican government has initiated negotiations to buy the 49% stake held by PDV Caribe, a subsidiary of Venezuela’s State-owned PDVSA, in the Dominican Petroleum Refinery (REFIDOMSA PDV). PDV Caribe has reportedly yet to agree to sell its stake and, "if the Venezuelan company doesn’t agree to the sale, the Dominican State would be forced into litigation declaring the country’s only refinery eminent domain and a matter of national security", REFIDOMSA PDV CEO Felix Jimenez is reported to have said. Jimenez reportedly does not expect the process - initiated last December - to be affected by Santo Domingo’s decision not to recognize the legitimacy of Venezuela president Nicolas Maduro. (Loop Jamaica: http://www.loopjamaica.com/content/dom-rep-also-moving-take-back-venezuela-shares-refinery)

 

Venezuela’s crisis threatens U.S. control over oil prices

The Russian bear is on the prowl once again as President Putin seeks to expand Moscow’s influence and bolster the one-time superpower’s global influence while proving to constituents he can restore Russia’s superpower mantle. As demonstrated by his policy in Ukraine in 2014, Moscow seeks to take advantage of regional conflicts to extend its authority and geopolitical power base while bolstering its economy. One country benefitting from Putin’s largesse is crisis-ridden and cash strapped Venezuela which has the world’s largest crude oil reserves. Moscow has been using Venezuela’s deepening economic and political crisis to strengthen its relationship with the highly unpopular socialist regime of President Maduro. That has included providing a financial lifeline to cash strapped Caracas and especially state-controlled energy company Petróleos de Venezuela, S.A. known by its initials as PDVSA. With few friends elsewhere, Russia has become a key ally for the strife-torn nation causing Maduro to leap at the opportunity provided by Moscow. Russia has shown itself willing to be a creditor of last resort for Maduro. In exchange for moderate loans, cash advances, bail outs and arms over the last five years since Maduro came to power, Moscow has secured significant interests in five of Venezuela’s largest oil fields. The Maduro regime has also signed over almost half of its downstream, refinery and infrastructure business CITGO to Russian state-controlled oil giant Rosneft for US$ 1.5 billion in urgently needed funds. That includes giving Moscow indirect interests in CITGO’s U.S. refining assets. This is quite a prize for Moscow. It not only bolsters its oil reserves, infrastructure and assets in a country which hold the world’s largest oil reserves, but it gives Russia a strategic presence in a region long considered to be exclusively under U.S. hegemony. It appears that Russia is not interested in the survival of the Maduro regime but rather to evade existing sanctions, apply political pressure to the U.S. and boost its oil reserves, refining capacity and production. (Oil Price: https://finance.yahoo.com/news/venezuela-crisis-threatens-u-control-200000843.html)

 

Commodities

Venezuela to refine tons of gold in Turkey amid US sanctions

Venezuela and Turkey are working on a deal to ship tons of gold to refine and certify in the Turkish city of Corum this year. Facing sanctions and international pressure, Venezuela is increasingly turning to Turkey as a partner in the Middle East. Ankara will provide a host of services to Caracas, including building hospital and schools and providing humanitarian aid as a part of the gold refining deal. Venezuelan Minister of Industries and National Production Tareck El Aissami will finalize a deal on the gold trade during a visit to Turkey on Wednesday. He will also tour an industrial complex in Corum, where Ahlatci Metal company has a refinery with an annual capacity of 365 tons, according to a spokesperson from the Turkish precious metals company. Aissami is visiting Turkey amid US sanctions against Venezuelan gold imports, which are further debilitating the country's failing economy that is in need of fresh capital. Aissami himself is targeted by a set of sanctions by the European Union and the US due to allegations of corruption and drug trafficking. The new deal has been in the making since Turkish President Recep Tayyip Erdogan’s visit to Venezuela in December. Erdogan had personally introduced businessman Ahmet Ahlatci to president Nicolas Maduro as a likely candidate to refine the gold. Mehmet Ozkan, a former Turkish official who worked on bilateral relations with Venezuela until last year, said that the main objective was to refine the raw metal and create a capital inflow to Venezuela, likely in the form of services because of US sanctions that prohibit financial institutions from dealing with Venezuela in dollars. (Middle East Eye: https://www.middleeasteye.net/news/venezuela-intends-refine-tons-gold-turkey-amid-us-sanctions-378492428)

 

Maduro opponent says Hezbollah is exploiting Venezuela gold mines

An MP opposed to President Nicolas Maduro revealed that the Lebanese Hezbollah group was exploiting gold mines in his country in order to finance its “destabilizing terrorist activity in the Middle East.” MP Americo De Grazia said that the armed group owns two mines in the Orinoco Mining Arc project that is supported by Maduro. He said that cooperation between the Venezuelan government and Hezbollah is mutually beneficial for both parties. The government, he explained, was generating a lot of revenues from the partnership, while the group was making economic profits and avoiding international sanctions. (Asharq-Al-Awsat: https://aawsat.com/english)

 

Economy & Finance

Venezuela congress seeks freeze on Maduro government foreign accounts

Venezuela’s opposition-run congress is considering a measure that would ask dozens of foreign governments to seek a freeze on bank accounts controlled by the government of President Nicolas Maduro. Congress will formally request that governments instruct regulatory agencies to “prohibit any movement of liquid assets by the Venezuelan state in local bank accounts” due to the Maduro government’s lack of legitimacy, according to one of the documents. The governments include those in the United States, European Union, and Latin American neighbors such as Chile and Brazil. (Reuters: https://www.reuters.com/article/us-venezuela-politics/venezuela-congress-seeks-freeze-on-maduro-government-foreign-accounts-document-idUSKCN1P920G)

 

Maduro increases minimum wage by 300% as inflation approaches 2 million per cent

Nicolás Maduro has raised the country’s minimum wage by 300% as part of routine wage increases as his government battles hyperinflation. Maduro increased the minimum wage to 18,000 bolivars, around £5.20, per month amid an economy suffering from annual inflation nearing two million per cent. He announced his economic plans at the start of his second, disputed, term on Monday, as calls increased for him to surrender power. (The Independent: https://www.independent.co.uk/news/world/americas/venezuela-minimum-wage-nicolas-maduro-bolivars-inflation-a8728716.html; Reuters, https://www.reuters.com/article/us-venezuela-politics/venezuelas-maduro-hikes-minimum-wage-as-economy-struggles-idUSKCN1P81RN; https://www.reuters.com/article/us-venezuela-politics-wage/venezuelas-maduro-hikes-minimum-wage-300-percent-idUSKCN1P82E2)

 

Russia offers Venezuela plan on revitalizing economy

Russia has proposed Venezuela an informal plan to revive the country's economy and is waiting for a response from Caracas, Russian Deputy Finance Minister Sergey Storchak told Sputnik on Tuesday. "We have made a proposal [to Venezuela]. An informal one. Traditionally, a project is devised after consultations and partners provide a response to this project", the official said on the sidelines of the Gaidar Forum. He also addressed the deal on restructuring Venezuela's debt to Russia. "Agreements have already been reached. They are making payments in line with a new schedule", Storchak added. (Sputnik News: https://sputniknews.com/latam/201901151071490301-russia-venezuela-economy/)

 

Politics and International Affairs

Venezuelan parliament declares Maduro illegitimate, and urges defections

Leaders of Venezuela’s opposition on Tuesday set in motion a plan to try to oust President Nicolas Maduro and create a caretaker government until new elections can be held. The National Assembly, the opposition-controlled legislative body, declared Maduro illegitimate, hoping to trigger a Constitutional mechanism that would allow the head of the National Assembly to take over the leadership. It was not immediately clear what effect the move would have or how Maduro’s government would react. The National Assembly has been largely powerless since Venezuela’s Supreme Court, which is packed by Maduro loyalists, attempted to dissolve it in March 2017. But pressure has been growing on Maduro both domestically and abroad since the president was sworn in for his second term last week. Not long after the ceremony, an opposition leader who is head of the National Assembly, Juan Guaidó, said he would be ready to take over as president and call fair elections if Venezuelans and the armed forces backed him. He quickly received support from Luis Almagro, the secretary general of the Organization of American States, who began calling Mr. Guaidó the country’s “interim president,” and from Vice President Mike Pence. Mr. Pence said in a message posted on Twitter Sunday that the United States “strongly supports the courageous decision by Juan Guaidó” to “declare the country’s presidency vacant.” Mr. Guaidó was briefly taken into custody by members of Venezuelan intelligence service on Sunday, then released. In an interview, he said he had been able to convince the officers that the opposition’s plan to remove Mr. Maduro was constitutional and would help the country.  The fact that Mr. Guaidó was released may indicate cracks in the security apparatus that has kept Mr. Maduro in power until now. Mr. Guaidó said on Monday that opposition leaders believed they stood a good chance of seizing power from Mr. Maduro and convening a new election. The key would be to persuade those who remain loyal to the government that they can switch allegiances and help rebuild a country devastated by an economic meltdown, acute food and medicine shortages and rampant violence. (The New York Times: https://www.nytimes.com/2019/01/15/world/americas/juan-guaido-nicolas-maduro-venezuela.html)

 

Trump considering recognizing opposition leader as legitimate President of Venezuela

President Donald Trump is considering recognizing Venezuela's opposition leader as the legitimate president of the country, three sources familiar with the matter told CNN, a significant move that would increase pressure on President Nicolas Maduro. The Venezuelan opposition, the United States and dozens of other countries have decried Maduro's presidency illegitimate and the country's constitution says a presidential vacancy can be filled by the president of the National Assembly. National Security Council spokesman Garrett Marquis declined to confirm that Trump is weighing this step, but said the US has "expressed its support for Juan Guaido, who as President of the democratically-elected National Assembly has courageously declared his constitutional authority to invoke Article 233 and call for free and fair elections." Secretary of State Mike Pompeo calls Nicolas Maduro government in Venezuela 'illegitimate' The Trump administration is also considering leveling its harshest set of sanctions yet against Venezuela's oil industry, weighing actions as severe as a full-fledged embargo of Venezuelan oil, two sources briefed on the matter said. A full oil embargo would cause gas prices to rise by 15 cents a gallon for about six months, a former senior administration official said of the analysis. The Organization of American States said last week that its member nations voted 19-6, with eight abstentions, to not recognize the legitimacy of Maduro's government. One of those nations, Paraguay, announced Thursday it was breaking diplomatic relations with Venezuela and closing its embassy there. And Republican Sen. Marco Rubio on Tuesday said he asked Trump to recognize Guaido as "the legitimate transitional President of Venezuela if the National Assembly invokes Article 233 of the constitution." In a statement on Friday, National Security Adviser John Bolton expressed US support for "the courageous decision of the National Assembly President, Juan Guaido, to invoke protections under Venezuela's constitution and declare that Maduro does not legitimately hold the country's presidency." And after Guaido was briefly detained Sunday by Venezuelan government operatives, Pence lambasted Maduro as a "dictator with no legitimate claim to power" and reiterated Bolton's support for Guaido. As the US weighs recognizing Guaido, it must also contend with whether the Venezuelan opposition -- which has been divided on whether Guaido should be sworn in as president while Maduro remains in office -- is ready to take the step. (CNN: https://www.cnn.com/2019/01/15/politics/trump-juan-guaido-venezuela/index.html; McClatchy: https://www.mcclatchydc.com/news/nation-world/world/latin-america/article224566420.html)

 

Venezuela's opposition stirs with lawmaker's emergence

Rallying around a little-known lawmaker, Venezuela’s opposition is stirring for the first time since President Nicolas Maduro crushed mass protests more than a year ago. For months, citizens ravaged by hunger have ignored calls to protest what the U.S. and many other countries have called a rigged election. Now, a trickle of supporters comes to hear Juan Guaido, 35, the new head of the defanged National Assembly, explain how an abstract constitutional provision could make him acting president. But whether Guaido can threaten the two-decade socialist autocracy that has driven the nation to ruin is far from clear. To do that, Guaido faces a Herculean task. In his two-week tenure as head of the assembly, he’s become recognized at home and abroad as Maduro’s top rival. But the largely untested protege of political prisoner Leopoldo Lopez must channel international pressure, unite a fractious opposition and motivate a beaten-down populace. In a Monday speech, Maduro scoffed at the idea of handing Guaido the reins of power. “I’m going to give you the sash, big boy, to see what you do with the country,” Maduro said, referring to the president’s tricolor ceremonial garment. Guaido, a former student leader, entered the assembly just four years ago and became its chief after peers were arrested or forced into exile. How long his platform lasts remains to be seen. Last week, the Constituent Assembly passed a measure that could be the first step toward the legislature’s disappearance. It also threatened treason investigations against lawmakers who back demands by Venezuela’s neighbors that Maduro hand over power. In the meantime, Guaido is convening town-hall meetings to discuss a constitutional provision that, in the absence of a legitimate president, would give the assembly’s head presidential powers to call new elections. So far, he has stopped short of declaring himself acting president, telling Venezuelans he needs the backing of the military and international community. An industrial engineer by training, Guaido more than a decade ago began organizing demonstrations against Chavez after the late leader silenced critics by refusing to renew the broadcast license of Venezuela’s most popular television channel. He formed a close relationship with Lopez, then a Caracas mayor, and later helped him form the Popular Will party. Even with Lopez under house arrest, they talk several times a day. In his short career, Guaido has been applauded for building unity among fellow legislators. His present challenge is to channel the desperate desire for change within the limits of an authoritarian state. (Bloomberg: https://www.bloomberg.com/news/articles/2019-01-15/venezuela-s-moribund-opposition-stirs-with-lawmaker-s-emergence)

 

Venezuela opposition plans incentives for officers who disavow Maduro

Venezuela’s opposition-led congress is considering offering legal incentives to military officers who disavow President Nicolas Maduro and help lead a transition to a new government, according to four legislators and a draft document seen by Reuters. The proposal, which comes in part at the request of high-ranking officers on active duty, seeks to ensure that defectors from the armed forces would not be persecuted by a future government if they abandon Maduro, according to the legislators, who asked not to be identified. It would apply to officers who “do not obey the orders of the man who has usurped the Presidency of the Republic ... and collaborate with the tradition and re-establishment of constitutional order,” the draft says. (Reuters, https://www.reuters.com/article/us-venezuela-military/venezuela-opposition-plans-incentives-for-officers-who-disavow-maduro-idUSKCN1P52HH)

 

Opposition-controlled Venezuela legislature calls for protest to oust Maduro

Venezuela's opposition-controlled legislature is calling for a mass protest against President Nicolas Maduro in a bid to oust the socialist leader in favor of "a transitional government." The president of the National Assembly, Juan Guaido, said Friday that the constitution gives the legislature the right to assume transitional power after declaring Maduro a "usurper," but said it would need military backing and for people to take to the streets to demand change. "Is it enough to lean on the constitution in a dictatorship? No. It needs to be the people, the military and the international community that lead us to take over," said the 35-year-old Guaido. In response, prisons minister Iris Varela threatened Guaido on Twitter, saying she had a cell ready for him. "I hope you quickly name your cabinet to know who is going to accompany you," Varela said. Guaido called for a mass protest on January 23 -- the day in 1958 on which the military dictatorship of Marcos Perez Jimenez fell. Mass protests demanding Maduro's exit also erupted in 2014 and 2017, leaving around 200 dead and hundreds arrested. (France 24: https://www.france24.com/en/20190112-opposition-controlled-venezuela-legislature-calls-protest-oust-maduro)

 

Leader of Venezuela Congress says he is prepared to assume presidency

The leader of Venezuela’s opposition-led congress said on Friday he was prepared to assume the country’s presidency on an interim basis and call elections, just one day after leftist President Nicolas Maduro was sworn in for a disputed second term. Juan Guaido, said he would only take office with support of the armed forces. “It should be the people of Venezuela, the armed forces, and the international community that give us a clear mandate to assume” the presidency, Guaido said in a speech to supporters outside the United Nations (U.N.) program office in Caracas. (Reuters, https://www.reuters.com/article/us-venezuela-politics/leader-of-venezuela-congress-says-he-is-prepared-to-assume-presidency-idUSKCN1P51U6)

 

Opposition leader Guaido 'not afraid' after detention

Venezuelan opposition leader Juan Guaido on Sunday said that President Nicolas Maduro’s adversaries were “not afraid” even though he was briefly detained by intelligence agents, days after announcing he would be willing to replace the increasingly isolated president. Intelligence agents on Sunday pulled him from his car on the way from the capital, Caracas, to the coastal town of Caraballeda, his wife and opposition legislators said. He was released shortly thereafter, they said. “I want to send a message to Miraflores - the game has changed,” said Guaido, 35, the head of the opposition-run congress, referring to the presidential palace, from a stage surrounded by cheering opposition sympathizers. He said that his recent detention shows the “desperation” of the regime of Nicolas Maduro. “They are desperate at Miraflores (the presidential residence). They don’t know who is giving orders,” the Popular Will (VP) lawmaker told hundreds of people at a public assembly in his home state of Vargas, near Caracas. Guaido arrived at the event two hours behind schedule. Venezuelan Communications Minister Jorge Rodriguez said that the incident was an irregular and unilateral procedure, whereby the agents involved were fired and an investigation opened to determine responsibilities. Guaido told reporters that the official version of events shows that Maduro “no longer controls the armed forces,” which reveals – he said – the “serious problem” within the military. (Reuters, https://www.reuters.com/article/us-venezuela-politics/venezuela-opposition-leader-guaido-not-afraid-after-detention-idUSKCN1P70LZ; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2473136&CategoryId=10718; Bloomberg, https://www.bloomberg.com/news/articles/2019-01-13/venezuela-opposition-leader-arrested-by-intelligence-police)

 

Defense minister recognizes Nicolás Maduro as its commander in chief for the period 2019-2025

Venezuela’s Minister of Defense, General Vladimir Padrino López, says the Armed Forces recognize Nicolás Maduro, as their commander-in-chief, as established by the Constitution. He said: “the Bolivarian National Armed Forces reiterates its Bolivarian, anti-imperialist and anti-oligarchic character for the troops of the Armed Forces, the Army, the Aviation, the Guard and the Bolivarian National Militia (...) we recognize as our commander-in-chief - Nicolás Maduro ". Padrino stressed that in this new 2019-2025 presidential term, the FANB with absolute loyalty, will continue to fight for the ideals of independence and sovereignty. He swore, along with the military, “to honor and obey the mandate expressed on May 20th, by the people in free elections”. (Latin American Herald Tribune, http://www.avn.info.ve/contenido/fanb-recognizes-nicol%C3%A1s-maduro-its-commander-chief-period-2019-2025)

 

'Bolsonaro is Hitler!' Venezuela's Maduro exclaims amid Brazil spat

President Nicolas Maduro on Monday called Brazilian President Jair Bolsonaro a modern Adolf Hitler, days after Brazil on Saturday said it recognized Juan Guaido, head of Venezuela’s opposition-run Congress, as legitimate president. “Over there we’ve got Brazil in the hands of a fascist - Bolsonaro is a Hitler of the modern era!” Maduro said during a state of the nation speech. Brazil’s government on Saturday issued a statement saying it recognized Venezuela’s Congressional leader, who opposes President Nicolas Maduro, as the rightful president of Venezuela. (Reuters: https://www.reuters.com/article/us-venezuela-politics-brazil/bolsonaro-is-hitler-venezuelas-maduro-exclaims-amid-brazil-spat-idUSKCN1P82FJ; https://www.reuters.com/article/us-brazil-venezuela/brazil-says-it-recognizes-venezuelan-opposition-leader-as-president-idUSKCN1P60FJ)

 

South America creating regional bloc to counter Venezuela

South American countries are developing a new diplomatic group to replace the UNASUR regional bloc that is heavily influenced by increasingly isolated Venezuela, Colombian President Ivan Duque said on Monday. The new group, called PROSUR, would seek to counteract the influence of what countries in the region call a dictatorship in Venezuela. “We’ve been advancing toward the end of UNASUR and the creation of PROSUR ... a South American platform for the coordination of public policies, the defense of democracy, independent institutions, and market economies,” Duque said in a radio interview. “It is very important that (UNASUR), which has been a supporter of the dictatorship of Venezuela, be shut down,” Duque said. (Reuters: https://www.reuters.com/article/us-colombia-diplomacy/south-america-creating-regional-bloc-to-counter-venezuela-colombia-idUSKCN1P8287)

 

UN expresses concern over political situation in Venezuela

UN spokesperson Stéphane Dujarric says UN Secretary General António Guterres "is concerned with what he is seeing” in Venezuela, and “is following events closely”. He called on all sides to abstain from “any action or rhetoric” that increases tension. He described Sunday’s detention of the National Assembly president as proof of “polarization” here. More in Spanish: (El Universal, http://www.eluniversal.com/politica/30540/la-onu-expresa-su-preocupacion-por-situacion-politica-en-venezuela)

 

Pompeo says Venezuela's Maduro government is 'illegitimate'

U.S. Secretary of State Mike Pompeo described Venezuela’s government under President Nicolas Maduro as illegitimate on Saturday and said the United States would work with like-minded countries in Latin America to restore democracy there. “The Maduro regime is illegitimate, and the United States will work diligently to restore a real democracy to that country,” Pompeo told reporters in Abu Dhabi, where he is on a tour of Middle East countries. “We are very hopeful we can be a force for good to allow the region to come together to deliver that.” (Reuters, https://www.reuters.com/article/us-venezuela-politics-pompeo/pompeo-says-venezuelas-maduro-government-is-illegitimate-idUSKCN1P60FL)

 

Venezuela claims win in Latin American diplomatic dispute, ignores criticism of Maduro

Venezuela’s government claimed victory on Saturday in a diplomatic quarrel with Latin American countries over a border dispute with Guyana, while ignoring an avalanche of criticism over President Nicolas Maduro’s second term in office. Maduro had warned members of the so-called Lima Group of “diplomatic measures” after they said on Jan. 4 that they would not recognize his second term because Venezuela’s 2018 election was not free or fair. The statement, signed by nations including Brazil, Argentina and Colombia, also expressed concern that Venezuela had violated Guyana’s sovereignty by stopping a ship doing offshore oil exploration on behalf of Exxon Mobil Corp. Foreign Minister Jorge Arreaza said at a news conference on Saturday that 10 of the 12 governments that signed the statement had since clarified their position on the Guyana dispute. (Reuters, https://www.reuters.com/article/us-venezuela-politics/venezuela-claims-win-in-latam-diplomatic-dispute-ignores-criticism-of-maduro-idUSKCN1P60NJ)

 

Venezuela proposes summit for reconciliation with countries of the region

Venezuelan Foreign Minister Jorge Arreaza proposed on Saturday a summit of Latin American countries for a session of reconciliation that would do away with political intolerance which, he said, is being applied in the region against the Nicolas Maduro government, whose legitimacy is not accepted by many in the international community.
“We insist on President Nicolas Maduro’s proposal to hold a summit of presidents... and also of a group of countries in the region, which will help achieve an end to this ideological intolerance that has grown in recent years,” the official told reporters this Saturday.Arreaza said the meeting could take place during a summit of the Community of Latin American and Caribbean States (CELAC), whose presidency is currently held by the Salvadoran president and Maduro ally, Salvador Sanchez Ceren. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2473108&CategoryId=10717)

 

Venezuela’s maritime claims also include territory of some CARICOM states

Venezuela is seeking to expand its maritime space not only in Guyana’s territory but also in the Exclusive Economic Zones (EEZs) of Caribbean Community (CARICOM) and other states, including Colombia, Barbados and Suriname, which must all be vigilant as a result. This warning was issued last Thursday by Guyanese Minister of Foreign Affairs Carl Greenidge and former Minister of Foreign Affairs Rashleigh Jackson, who both pointed out that regular aggression against Guyana by Caracas including the recent interception of an ExxonMobil-contracted vessel in Guyana’s maritime space, has implications not only for Guyana but for the rest of the Caribbean as well. Greenidge and Jackson cautioned against Venezuela’s expansionist approach to increasing its maritime space and enforcing its actions through domestic laws which are not recognized internationally. (Stabroek News: https://www.stabroeknews.com/2019/news/guyana/01/13/venezuelas-maritime-claims-also-include-territory-of-some-caricom-states/)

 

Vatican, Venezuela bishops play ‘good cop/bad cop’ with Maduro

A day after the bishops of Venezuela declared the new presidency of Nicolas Maduro “illegitimate,” Pope Francis sent a Vatican representative to his inauguration. Maduro thanked Monsignor George Koovakod for his “bravery” for coming. Many observers say the apparent contrast isn’t a matter of the Vatican and the bishops being at odds, but rather a classic “good cop, bad cop” diplomatic maneuver. Concerns over legitimacy have led the United States, along with most nations of Latin America and the European Union, to break diplomatic relations with Venezuela. Visible among the few representatives from other countries was Koovakod, a Polish monsignor who was appointed as Chargé d’affaires at the Vatican’s Secretary of State last year.

The Venezuelan crisis is not one the Holy See’s diplomatic team looks at from afar: the substitute, often referred to as the second most important person in the secretariat, comes from this Latin American country, Archbishop Edgar Peña Parra. The secretary of state, Italian Cardinal Pietro Parolin, was handpicked by Francis for the job while he was serving as papal representative in Venezuela. When the Venezuelan bishops were in Rome last September for their ad-limina visit, the matter of the Holy See acknowledging Maduro as the rightful, democratically elected president was brought up by many in the Vatican, including Francis. The situation is complex, and no clear decision was reached during the week-long visit. According to Elisabetta Pique, a long-time Vatican watcher who writes for one of Argentina’s major newspapers, La Nación, the Venezuelan bishops had the green light from the Holy See to declare Maduro’s regime to be illegitimate and the local episcopacy had been consulted about the pros and cons of sending a representative to Maduro’s swearing in. This information suggests that despite Maduro’s attempts to put the bishops and Francis on opposite sides, at the end of the day, it’s no more than another case of the Vatican’s realpolitik at play, confirming the Holy See’s intentions never to break diplomatic relations with a country. The Church’s long-standing tradition of leaving the doors of dialogue and diplomacy open whenever it’s possible does not mean actual support of the local ruling class. In 2016 Francis tried, unsuccessfully, to mediate dialogue efforts between Maduro and the opposition. Despite this, the Vatican’s attention to the Venezuelan situation has remained steady, as seen during the pope’s Christmas speech and his address to the diplomatic corps accredited to the Holy See. On both occasions he referred to the situation of Venezuela, and also that of Nicaragua, facing a similar situation and one that could devolve even more rapidly, as the Central American nation is not sitting on top of one of the world’s largest oil reserves. Expressing “hope for beloved Venezuela,” Francis told the diplomats that “peaceful institutional means can be found to provide solutions to the ongoing political, social and economic crisis; means that can make it possible to help all those suffering from the tensions of recent years, and to offer all the Venezuelan people a horizon of hope and peace.” In that speech he said that “the Holy See has no intention of interfering in the life of states; it seeks instead to be an attentive listener, sensitive to issues involving humanity, out of a sincere and humble desire to be at the service of every man and woman.” Many observers saw this as a response from the pope to a letter signed by 20 Latin American former presidents criticizing the pope’s remarks on Christmas Day, when he said he wished this time of “blessing,” referring to the holiday season, would bring “concord” to Venezuela. (The Crux: https://cruxnow.com/church-in-the-americas/2019/01/13/vatican-venezuela-bishops-play-good-cop-bad-cop-with-maduro/)

 

Venezuela blocks Wikipedia after Maduro ‘ousted’ from article, internet watchdog says

Venezuela has blocked access to Wikipedia, the free online encyclopedia, becoming only the second country after Turkey to do so, an internet watchdog claimed Sunday. According to NetBlocks, a digital rights group that tracks restrictions to the internet, as of 12 January, Venezuela largest telecommunications provider CANTV has prevented access to Wikipedia in all languages. The internet observatory told Haaretz the ban was discovered by attempting "to access Wikipedia and other services 60,000 times from 150 different points in the country using multiple providers." Wikipedia receives on average 60 million views from the country every month.  According to NetBlocks, the ban was likely imposed after a Wikipedia article listed newly-appointed National Assembly president Juan Guaidó as “president number 51 of the Bolivarian Republic of Venezuela,” ousting Maduro from his presidential status on Wikipedia.  Alp Toker, the head of NetBlocks, explained that the block followed a string of controversial edits on the Spanish-language article for Guaido as well as other related articles.  (Haaretz: https://www.haaretz.com/world-news/internet-watchdog-venezuela-blocks-wikipedia-after-maduro-ousted-from-article-1.6831777)

 

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.

January 08, 2019

International Trade

SPECIAL REPORT: The Venezuela-China Relationship, Explained

This is the first of a four-part series, which will be published on Mondays this month, that spotlights the Venezuela-China relationship. Key points:

• In 2001, Venezuela became the first Hispanic country to enter into a “strategic development partnership” with China, a relationship that was elevated to “comprehensive strategic partnership” in 2014, and which now totals at least 790 investment projects in Venezuelan territory. They range from infrastructure, oil, and mining to light industry and assembly.
• China’s development projects in Venezuela have disappeared over the past 11 years, mostly devoured by corruption or by the debt default that this has incurred with the Asian giant, which froze many direct investments.
• Loans from China to Venezuela reached at least US$ 50 billion by 2017, with some estimating the number to have been as high as US$ 60 billion. (The uncertainty regarding the figure is the result of opaque loans, split into payments of US$ 2 billion and US$ 5 billion each.)
• As of 2016, China has stopped issuing new loans to Venezuela. Since then, Chinese representatives have sought unofficial meetings with individual members of the opposition, trying to secure guarantees that the debt, about US$ 20 billion, will eventually be paid back.
• In 2000, there was an immigrant population of approximately 60,000 Chinese in Venezuela. Eighteen years later, President Nicolás Maduro estimates there are 500,000 Chinese citizens residing in the country.
• Venezuela has gold reserves with a commercial value of more than US$ 200 billion. In Coltan, reserves are valued at least at US$ 100 billion, and iron is estimated at more than US$ 180 billion. China worked with Venezuela on the Venezuelan Mining Map in an area of 111,800 square kilometers (12.2% of Venezuelan territory), and currently has direct investments of over US$ 580 million. (SUPCHINA: https://supchina.com/2019/01/07/venezuela-china-explained/)

 

Oil & Energy

Venezuelan crude sales to U.S. drop to lowest in almost 30 years

Venezuelan crude exports to the United States last year fell 15% to the lowest annual average in nearly three decades, according to REFINITIV EIKON data, as fast-declining oil output and financial sanctions continued to hit sales. Crude volumes to the United States by state-run PDVSA and its joint ventures dropped to 500,013 barrels per day (bpd), a third less than five years ago and the lowest since 1989, figures from REFINITIV EIKON and the U.S. Energy Information Administration showed. A lack of investment, mismanagement and fleeing workers have driven oil production to the lowest in almost seven decades. Under a military-led board of directors, output fell to an average of 1.516 million bpd from January through November last year, a 27% fall compared with the 2.072 million bpd for all of 2017, according to numbers officially reported to OPEC. Other estimates are lower. The largest U.S. receiver of Venezuelan crude last year was PDVSA's refining unit CITGO Petroleum with 175,873 bpd, followed by Valero Energy with 166,099 bpd and CHEVRON with 83,041 bpd. (Reuters: https://uk.reuters.com/article/oil-venezuela-usa/venezuelan-crude-sales-to-us-drop-to-lowest-in-almost-30-years-idUKL1N1Z415R)

 

France's Maurel & Prom to invest US$ 400 million in Venezuela oil venture

France’s Maurel & Prom will invest US$ 400 million to acquire a 40% stake in a Venezuela oilfield joint venture called PETROREGIONAL del Lago, state oil company PDVSA President Manuel Quevedo said on Monday. Maurel & Prom said in a December statement it had agreed to pay US$ 80.5 million to buy the stake from Royal Dutch Shell and that it would invest US$ 402.5 million) in boosting output. “It will participate together with PDVSA with $400 million in investment to increase production in Lake Maracaibo,” said Quevedo in a broadcast from Venezuela’s presidential palace in the company of Maurel & Prom President Michel Hochard. “We have signed agreements to ensure the necessary investments at the start of 2019 ... to boost production to 70,000 barrels per day,” he said, without making any reference to Shell. The field in 2018 produced around 15,500 barrels per day. The Lake Maracaibo area has been plagued by frequent theft of equipment and chronic power cuts as Venezuela remains mired in deep recession, hyperinflation and chronic shortages of food and medicine. (Reuters: https://www.reuters.com/article/us-venezuela-oil-quevedo/frances-maurel-prom-to-invest-400-million-in-venezuela-oil-venture-pdvsa-idUSKCN1P11VX)

 

PDVSA in oil deal with firm part-owned by Florida Republican

With brand-name drillers unwilling to jump in, Venezuela is resorting to a newly formed U.S. company for help in shoring up production from its crude reserves, the largest in the world. Venezuelan state oil firm PDVSA has signed a deal with little-known U.S. energy firm EREPLA, partly owned by a prominent Florida Republican, to help increase the socialist-run country’s plummeting crude oil output, the company said. EREPLA Services LLC, with an undisclosed stake held by Republican Harry Sargeant III and which Delaware state records show was only registered in November, said it plans to invest up to US$ 500 million to increase production at three Venezuelan oil fields in exchange for a portion of the crude produced. Sargeant and Petróleos de Venezuela, S.A., known as PDVSA have clashed in the past. Between 2006 and 2008, The new arrangement faces significant hurdles, including obtaining an exemption from Trump administration sanctions that block U.S. companies from providing financing to the government of President Nicolas Maduro or Venezuelan state firms. EREPLA will supply rigs and crews in the onshore fields for 25 years, with an option to extend for another 15 years, according to the contract. "The agreement gives U.S.-based Erepla enhanced managerial participation and an innovative payment structure designed to avoid the shortfalls that have plagued previous projects," Sargeant said in a statement Saturday. He said the agreement will “revitalize oil production” at the Tia Juana Lago and Rosa Mediano fields in the western Lake Maracaibo region and in the Ayacucho 5 bloc, in the eastern heavy-oil Orinoco Belt. The company added that the deal gives it “enhanced managerial participation” in the projects and will be responsible for procurement, a key difference from long-established joint ventures between PDVSA and oil majors, where PDVSA has full operational control. EREPLA said it would be “responsible for the entirety of the investment.” A spokesman declined to elaborate on how it would raise the funds. Sargeant, who has served as finance chairman of the Florida Republican Party and runs asphalt trading and shipping firm Global Oil Management Group, owns a stake in EREPLA, but declined to reveal the percentage. The deal is the first new partnership between PDVSA and a private company since Oil Minister Manuel Quevedo in August announced a set of “joint service agreements” with 14 little-known companies that did not appear to have experience operating oilfields and PDVSA. EREPLA said it had applied to the U.S. Treasury Department’s Office of Foreign Assets Control, which implements sanctions, for a “Specific License affirming the agreement.” The deal has been criticized by hardline Chavez supporters, who say it cedes too much control to a foreign company. (Reuters: https://www.reuters.com/article/us-venezuela-oil/venezuelas-pdvsa-in-oil-deal-with-firm-part-owned-by-florida-republican-idUSKCN1P11EM; Oil Price: https://oilprice.com/Latest-Energy-News/World-News/Newcomer-To-Help-Venezuela-Reverse-Oil-Production-Drop.html; Bloomberg, https://www.bloomberg.com/news/articles/2019-01-04/venezuela-taps-obscure-driller-to-replace-big-name-oil-companies)

 

Why Venezuela is clashing with its old foe EXXON again

President Nicolas Maduro has vowed to block EXXON Mobil Corp. from exploring for oil in contested waters off neighboring Guyana. The dispute threatens the development of the world’s biggest new deep-water oil play. EXXON moved two vessels away from the disputed region after Venezuela’s navy confronted them last month. Venezuela claims everything west of the Essequibo River -- about two-thirds of what Guyana considers its territory, in some cases threatening military action. EXXON CEO Darren Woods has targeted Guyana’s oil riches in his push to arrest declining production and stagnating returns. The world’s biggest publicly traded oil company was granted an exploration permit by Guyana in 1999, and finally hit a gusher in 2015, and the discoveries have kept coming -- 10 to date, totaling 5 billion barrels, with at least a dozen exploration wells yet to be drilled. So far, the discoveries have been concentrated in the southeast part of the Stabroek block, a vast area about 100 miles (161 kilometers) from Guyana’s coast. Exxon wants to extend exploration farther east, closer to Venezuela’s border and into the disputed region. When Exxon made the initial "Liza" discovery in 2015, Maduro demanded that the drilling stop, said it threatened to "bring war to our borders” and withdrew Venezuela’s ambassador to Guyana. EXXON owns 45% of the Stabroek block, with Hess Corp. at 30% and China’s CNOOC Ltd. at 25%. Together they plan to produce at least 750,000 barrels a day by 2025, putting Guyana ahead of OPEC member Ecuador’s current production. EXXON said its ships were intercepted more than 68 miles west of its nearest discovery and had been conducting seismic work, mapping the geology under the ocean floor. EXXON said its plans to begin producing oil by 2020 and subsequent development plans are unaffected. Still, with expectations high that there’s a lot more oil to be found. Venezuela’s stance is causing worry. United Nations Secretary-General Antonio Guterres referred the boundary case to the International Court of Justice last year. So far, Venezuela’s response has been to deny the court has jurisdiction in the matter. The U.S. government supports Guyana’s “sovereign right to develop those resources, which includes allowing ships to go about their business doing surveys and other seismic activities." (Bloomberg: https://www.bloomberg.com/news/articles/2019-01-07/why-venezuela-is-clashing-again-with-old-foe-exxon-quicktake)

 

Economy & Finance

Venezuela lets Bolivar slide but can't keep up with black market

Given Venezuela’s deep economic crisis, the fact that the government has devalued its official rate massively in the past month has barely made any headlines. Most people focus instead on the black-market exchange rate which is accessible for all and which sets most prices in the beaten-down economy. Despite the government’s efforts over the past decade to stamp out the street trading of money, the market has flourished and the struggle to have a single rate looks doomed without a series of economic reforms and policies that would correct the imbalances. The bolivar weakened 67% on Venezuela’s currency auction system, known as DICOM, over the past month. Last week, dollars were selling at 638 bolivars on the platform, which sets the official price of money for both private business and individuals, compared to about 213 bolivars at the same time in December. On Monday, as much of the country was returning to work after the holiday season, greenbacks were fetching nearly 1,100 bolivares on the street. (Bloomberg, https://www.bloomberg.com/news/articles/2019-01-07/venezuela-lets-bolivar-go-but-it-can-t-keep-up-with-black-market)

 

OP-ED: Venezuela's hyperinflation hits 80,000% per year in 2018, by Steve Hanke

Venezuela's economy has collapsed. This is the result of years of socialism, incompetence, and corruption, among other things. An important element that mirrors the economy's collapse is Venezuela's currency, the bolivar. It is not trustworthy. Venezuela's exchange rate regime provides no discipline. It only produces instability, poverty, and the world’s highest inflation rate for 2018.  Indeed, Venezuela’s annual inflation rate at the end of 2018 was 80,000%. How do we accurately measure Venezuela’s inflation? There is only one reliable way. The most important price in an economy is the exchange rate between the local currency - in this case, the bolivar - and the world’s reserve currency, the U.S. dollar. As long as there is an active black market (read: free market) for currency and the data are available, changes in the black-market exchange rate can be reliably transformed into accurate measurements of countrywide inflation rates. The economic principle of purchasing power parity (PPP) allows for this transformation. And the application of PPP to measure elevated inflation rates is rather simple. And, what criteria are used to categorize an inflation as an episode of hyperinflation? The following criteria should be met before any episode of elevated inflation be termed “hyperinflation”: An episode of hyperinflation occurs when the monthly inflation rate exceeds 50%/mo. for 30 consecutive days. In Venezuela, the monthly inflation rate exceeded 50%/mo back on November 13, 2016 and remained above 50%/mo until December 14, 2016 (32 consecutive days). On December 15, 2016, the monthly inflation rate fell below 50%/mo mark. Then, on November 3, 2017, the monthly inflation rate again exceeded 50%/mo threshold, before falling below the threshold on December 17, 2017 (for 44 consecutive days). So, Venezuela has been engulfed in a hyperinflation episode ever since November 13, 2016, with another flare up of the same episode occurring during the November-December 2017 period. Venezuela is the only country in the world that is currently experiencing the ravages of hyperinflation. Devastating as it is, 80,000% is a far cry from the International Monetary Fund’s unbelievable end-of-the-year inflation forecast for Venezuela of 2,500,000%/yr. One should never forget that one can measure episodes of hyperinflation with great precision, but no one can reliability forecast their durations or magnitudes—a fact that has failed to penetrate the walls of the IMF’s insular bureaucracy. How can Venezuela pull itself out of its economic death spiral? Venezuela must officially dump the bolivar and adopt the greenback. Official “dollarization” is a proven elixir. I Just what does the Venezuelan public think of the dollarization idea? To answer that question, a professional survey of public opinion on the topic was conducted in March 2017 by DATINCORP in Caracas. The results are encouraging: Sixty-two (62%) of the public favored dollarization. The fact of the matter is that the public has already spontaneously dollarized the economy. (FORBES: https://www.forbes.com/sites/stevehanke/2019/01/01/venezuelas-hyperinflation-hits-80000-per-year-in-2018/#31f2c1534572)

 

Politics and International Affairs

New Venezuela congress chief says Maduro will be usurper president

Venezuela's opposition-controlled congress opened its first session of the year Saturday, installing a fresh-faced leader who struck a defiant tone and vowed to take up the battle against socialist President Nicolas Maduro. Juan Guaido, 35, assumes the presidency of a National Assembly stripped of power by Maduro. Speaking to legislators, Guaido named off several opposition politicians and opponents of Maduro's government who have been jailed, driven into exile or killed. He said desperation has forced masses of citizens to flee abroad looking for work. "We are under an oppressive system," he said. "It's not just that — it is miserable." Tall and youthful, Guaido is an industrial engineer and former student leader from the same political party as Leopoldo Lopez, Venezuela's most popular opposition leader under house arrest. Guaido called Maduro a dictator whose legitimacy has run out. Venezuela is living a "dark but transitional" moment of its history, he said, adding that among its first acts congress will create a transitional body to restore constitutional order, but he offered no details. The newly elected chief of Venezuela’s opposition-run Congress said President Nicolas Maduro will be “usurping the presidency” when he swears in for a second term on Jan. 10 after winning a much criticized and broadly boycotted 2018 election. His statements add to criticism by governments around the world that have accused Maduro of undermining democracy and mismanaging the economy. But the largely powerless congress has few concrete means of stopping the inauguration or easing Maduro’s grip on power. “Maduro from January 10 will be usurping the presidency of the Republic,” said Guaido. “This National Assembly, as the only legitimate power elected by Venezuelans, assumes the representation of the people.” Roughly 20 foreign diplomats from the United States, Canada, Japan, Italy and Germany attended the assembly's inaugural session in a show of solidarity. "The National Assembly should inspire hope in the Venezuelan people for a peaceful, prosperous, and democratic future, even as the corrupt and authoritarian Maduro regime and its allies seek to deny Venezuelans that right," the State Department said in a statement. It added: "Every nation must take strong action to help the Venezuelan people reclaim their democracy." The assembly opened days before Maduro's inauguration to a second, six-year term widely condemned as illegitimate after he declared victory in the May 20 election that many foreign powers considered a sham. Venezuela's socialist party boss Diosdado Cabello said Saturday that Maduro will be sworn in on Jan. 10 before the Supreme Court, which is stacked with government loyalists. This defies the constitution that requires a president take the oath before the National Assembly. As international pressure mounts, a dozen Latin American countries and Canada on Friday urged Maduro to cede power and hand it over to congress until a valid president is elected. (NZ Herald, https://www.nzherald.co.nz/world/news/article.cfm; Reuters, https://www.reuters.com/article/us-venezuela-politics/new-venezuela-congress-chief-says-maduro-will-be-usurper-president-idUSKCN1OZ0N8)

 

Latin American nations call for new elections in Venezuela

A group of 12 Latin American nations plus Canada urged Venezuela’s leader to hand power to the opposition-controlled National Assembly and call new elections, stepping up pressure on Nicolas Maduro days before he’s due to start a new term. The so-called Lima Group of nations views the presidential election in Venezuela last year as illegitimate and won’t recognize Maduro as leader when his new term begins Jan. 10, according to a joint statement issued Friday following a meeting of foreign ministers. The countries agreed to bar the entry of senior Venezuelan officials and reevaluate diplomatic relations with the crisis-racked country. Governments will draw up a list of individuals and companies with which banks will be barred from doing business and will freeze assets if necessary, according to the statement. They also agreed to suspend military cooperation with Maduro, including the transfer of arms. (Bloomberg, https://www.bloomberg.com/news/articles/2019-01-04/latin-american-nations-call-on-venezuela-to-hold-new-elections)

 

Mexico defends hands-off stance on Venezuela

Mexico’s new leftist government on Friday called on its peers to refrain from interfering in Venezuela’s internal affairs, declining to back a regional declaration that urged President Nicolas Maduro not to take office on Jan. 10. Mexico was the sole country in the 14-member Lima Group that opted not to sign a statement critical of Maduro, the first time Mexico has not supported a declaration by the group since it was created in 2017 to push for democratic reforms in Venezuela. Mexico was once among the most outspoken critics of Maduro. But ties with Venezuela have warmed under President Andres Manuel Lopez Obrador, who invited Maduro to his inauguration last month. Maximiliano Reyes, Mexico’s deputy foreign minister responsible for Latin America, said following a Lima Group meeting in Peru that Mexico was concerned about the “situation regarding human rights” in Venezuela but would not comment on the legitimacy of its government. Mexican President Andres Manuel Lopez Obrador defended his administration's hands-off policy on Venezuela Monday, saying it marked a return to the country's longstanding policy of non-intervention. The new policy is not without its critics. On Friday a Colombian woman approached Lopez Obrador at an airport — the president flies commercial class on regular flights — and asked him why Mexico hadn't taken a position on Venezuela. "I don't get involved in other countries' affairs," Lopez Obrador answered her. On Monday, he acknowledged that "this is an issue that generates a lot of polemics, but it should be understood that this is not an issue of political sympathies." Some have accused Lopez Obrador, a leftist, of sympathizing with Maduro, a self-declared socialist. But Lopez Obrador said it is a return to the non-intervention policy Mexico practiced from the 1960s — when it resisted U.S. pressure to condemn or isolate Cuba — until 2000, when the conservative National Action Party began a adopt a more activist, U.S.-allied stance in foreign affairs. "For me the best foreign policy is domestic policy," Lopez Obrador said. "This doesn't just apply to Venezuela's case." Lopez Obrador may be positioning Mexico to serve as a trusted mediator in any possible negotiated solution to Venezuela's crisis. Raul Benitez, a security expert and professor at the National Autonomous University of Mexico, said: "Maduro is isolated, and Mexico could be a negotiator ... because Maduro will have confidence in him," Benitez said. Lopez Obrador also hinted at dialogue, though such efforts have failed in the past in the face of the government's intransigence and violation of democratic norms. "We are for dialogue," Lopez Obrador said. "Will participate in that, let everything be done by dialogue." (South Florida Sun Sentinel: https://www.sun-sentinel.com/news/sns-bc-lt--mexico-venezuela-20190107-story.html; Reuters, https://www.reuters.com/article/us-venezuela-politics/mexico-urges-regional-bloc-not-to-meddle-in-venezuela-idUSKCN1OY1R4)

 

Antigua and Barbuda and Venezuela strengthen bilateral relations

Venezuelan Foreign Minister Jorge Arreaza visited Antigua and Barbuda on Monday, with the aim of strengthening various areas of common interest between both countries. He held a working meeting with the Prime Minister of Antigua and Barbuda, Gaston Browne, where both representatives ratified their desire to contribute to the well-being of the two sisterly nations and to strengthen cooperation with Petrocaribe and ALBA. For his part, Browne expressed a message of solidarity for Venezuela and President Nicolás Maduro, rejecting all kinds of interference and sanctions from foreign powers. In turn, the Prime Minister augured success to the Venezuelan President for his upcoming presidential term that begins this January 10. (Foreign Ministry of Venezuela: http://mppre.gob.ve/en/2019/01/07/antigua-and-barbuda-venezuela-bilateral-relations/)

 

Venezuela calls in UN Human Rights Commission

The office of the United Nations’ top official for human rights, former socialist Chilean President Michelle Bachelet, said Friday she has been officially invited to visit humanitarian-crisis stricken Venezuela, just as the opposition has begun announcing street protests in the days leading to the polemical second inauguration of embattled head of state Nicolas Maduro January 10th. The UN has not announced a date for Bachelet’s visit as of Friday, however. “Noticias ONU”, the UN’s web news service in Spanish, posted Friday: “The High Commissioner for Human Rights, Michelle Bachelet, has received a formal invite by the Government of Venezuela to visit the country”. Opposition figures in Venezuela, as well as family members and lawyers of political prisoners, have repeatedly asked Caracas to grant the UNHCHR access to the country amid widespread allegations of human rights abuses. Bachelet and many of her predecessors have previously been denied permission to visit the country by President Nicolas Maduro’s government. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2472554&CategoryId=10717; http://www.laht.com/article.asp?ArticleId=2472583&CategoryId=10717)

 

Supreme Court Judge denounces Maduro government flees to U.S.

A Venezuelan Supreme Court judge who once supported President Nicolás Maduro has fled to the United States and publicly denounced Maduro's re-election days before the inauguration. Justice Christian Zerpa left Venezuela with his wife and two daughters. Their destination in the U.S. was unclear. Zerpa met a reporter in Orlando and told the outlet, "I think the president, Nicolás Maduro, does not deserve a second chance because the election he supposedly won was not a free election, was not a competitive election." Zerpa said he did not speak out against the election results months ago out of concerns for his family's safety. Maduro's Socialist Party "gradually but steadily" co-opted the Supreme Court and "turned it into an appendage of the executive branch," according to the International Commission of Jurists. In 2016, following a landslide electoral victory by the opposition, Zerpa helped Maduro consolidate power through a court decision that diminished the powers of Congress. The Maduro regime’s Supreme Courte responded to Zerpa's decision to leave by noting he was being investigated for sexual harassment, lewd acts and psychological violence. Zerpa "fled the country, exercising his constitutional right, to avoid justice and so his crimes remain unpunished," said Supreme Court President Maikel Moreno, who said the investigation began last November. Moreno himself was arrested in connection with the homicide of a teenager in 1989 and was defrocked as an appeals court judge in 2007 for improperly releasing two murder suspects. "Under Moreno as chief justice, the court proceeded to dismiss every legal challenge to Maduro's authority that has reached the bench," the report stated. Zerpa is not the first Venezuelan justice to flee to the United States. Former Supreme Court Judge Eladio Aponte Aponte fled in 2012 after accusing the government of corruption. Maduro, then the foreign minister, called him a fugitive who "sold his soul." (NPR: https://www.npr.org/2019/01/07/682865392/venezuela-supreme-court-judge-denounces-government-flees-to-u-s; Reuters, https://www.reuters.com/article/us-venezuela-politics/former-venezuela-supreme-court-judge-flees-to-u-s-denounces-maduro-idUSKCN1P00OU; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2472666&CategoryId=10717)

 

Publication of new Venezuela-related Designations, including the GLOBOVISION TV network

Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing Venezuela-related General License 6.  General License 6 authorizes U.S. persons to engage in specified transactions related to winding down or maintaining business with GLOBOVISION Tele C.A. and GLOBOVISION Tele CA, Corp. and their subsidiaries until January 8, 2020. OFAC is issuing a new FAQ about General License 6. See ANNEX.

 

OP-ED: Why January 10 could spark another crisis in Venezuela

When Nicolás Maduro begins another six-year term on Thursday, politics in the crisis-stricken country will get even more complicated. On Jan. 4, the Lima Group announced they would only recognize the country’s National Assembly as a legitimately elected body and called for the OAS to follow suit. The group includes the governments of Argentina, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Guyana, Honduras, Panama, Paraguay and Peru – but not Mexico. A president that much of the region considers illegitimate could mean that Venezuelans representing the Maduro government won’t be able to enter many countries. Further, financial dealings could be thwarted, accounts in foreign soil frozen, and weapons cooperation suspended. If there is no longer a legitimate government, what happens to Venezuelan delegations at international organizations? What happens to the Venezuela’s representation at the IMF, the World Bank, the Andean Development Corporation? What will happen to Venezuela’s ambassadors? These are relevant questions. The declaration of the Lima Group underscores how invested many countries in the region are in finding a solution to the Venezuelan crisis by exerting maximum diplomatic pressure on the Maduro regime. Their statement that the National Assembly is the only elected body they recognize and the suggestion about the legitimacy of the Supreme Court in exile sets the stage for the opposition in Venezuela to start moving in the direction of an institutional transition that many countries could support. In his inauguration speech, the newly elected speaker of the national assembly, Juan Guaidó from the Popular Will party, laid out a blueprint for a political transition, including naming a transitional committee. There will be more actions taken in coming days and it is not yet clear if the National Assembly will move to appoint an outright parallel government in Venezuela. But some within the opposition see this as the goal after January 10, given the unique historical moment that could help trigger a crisis of legitimacy that could finally break chavismo and the military. “On Jan. 10, the clock starts ticking on a full-fledged accountability crisis in Venezuela,” says Luisa Palacios, the head of Emerging Markets research at Medley Global Advisors. “To believe that the Maduro government can keep itself in power amidst the legitimacy crisis he is about to face, you also must believe that he can stabilize either the economic situation, or inflation, or oil production. However, everything that could lead to stabilization is going in the opposite direction”. Ms Palacios adds: “Maduro’s capacity to distribute rents is significantly declining and the value of those rents is evaporating. Guaidó in his inaugural speech mentioned something which is also very true: Maduro cannot protect anyone anymore, because the revolution is killing his own.  The recent death of Nelson Martinez, former CEO of PDVSA in a Venezuelan prison is a very chilling example for other chavistas, as is the recent defection of a Supreme Court justice. Both were Maduro loyalists. It’s true that Maduro has lived through other governability crises and he has survived them all. In fact, since 2013 he’s had one every year, but the combination of events in 2019 will be much harder to face given the multiple challenges Maduro will be facing on all possible fronts imaginable.” She concludes: “I have always thought that regime change in Venezuela might be a two-stage process with some kind of political change within chavismo before there is a transition towards an opposition government.” (Americas Quarterly: https://www.americasquarterly.org/content/why-january-10-could-spark-another-crisis-venezuela)

 

SPECIAL REPORT: 7 Reasons for describing Venezuela as a ‘Mafia State’

There is no universally accepted definition of what constitutes a “mafia state.” Here are seven arguments as to why we think Venezuela qualifies and what the implications are of this troubled Andean nation as a regional crime hub.

1. Top level criminal penetration into state institutions. For the last three years InSight Crime has been tracking individuals we believe have links to organized crime and have held, or currently hold, senior positions in Venezuelan state institutions. We have found 123 officials that we confidently believe are involved in criminal activity. For legal reasons we will not publish the entire list, but some of the clearest cases are named in this investigation, “Drug Trafficking within the Venezuelan Regime: The Cartel of the Suns.” What is clear from our investigations is that the following institutions are staffed at the higher echelons by individuals we believe are, or have been, engaged in criminal activity: The Vice Presidency, the Ministries of Interior, Defense, Agriculture, Education, Prison Service, Foreign Trade and Investment, Electricity, the National Guard, the Armed Forces, the Bolivarian National Intelligence Service (SEBIN) and PDVSA. The penetration of so many key institutions, and the fact that they constitute the state’s main organs in the fight against organized crime, means that Venezuela cannot even contain organized crime, let alone effectively fight it. With so many state actors with interests in criminal activity, be it fuel smuggling, the black-market sale of food and medicines or the trafficking of cocaine, this factor alone suggests that Venezuela qualifies as a mafia state.

2. Evidence of kleptocracy. The state coffers have been pillaged on an industrial scale by the Bolivarian elite. With no transparency or public accounting of state budgets or expenditure, it is hard to calculate how much has been looted from the country. An investigation by a congressional committee put the number at US 70 billion. A former minister has stated that the number is closer to US$ 300 billion.

3. The devolution of state powers to irregular and illegal actors. Following the 2002 military coup that ousted Hugo Chávez from power for 48 hours, the president made key changes to the levers of power to ensure he could not be toppled in the same way again. One of the measures he adopted was to devolve state functions to irregular and even criminal elements. The security forces also lost the monopoly on carrying arms. Instead there has been a proliferation of weapons and munitions into criminal hands, either by design or through corruption. We have two articles in this investigative series dedicated to two examples of this: “The Devolution of State Power: The Colectivos,” and “The Devolution of State Power: The Pranes.” The colectivos are irregular, usually armed groups that have control over many neighborhoods, principally in Caracas. The pranes are the criminal bosses within Venezuela’s prison system. Under Prison Minister Iris Varela, the government has largely delivered control of the prison system to the pranes, with the understanding that they keep violence to a minimum and prevent disorder within the penitentiary system.

4. Exponential growth of Venezuelan organized crime. Today crime is rampant, and Venezuela is likely the kidnap capital of Latin America, although there is no hard data to support this claim. There have been a series of government policies that have directly benefited organized crime. One began in 2013, when the government began implementing what became known as its “peace zone” policy which was to engage in social investment in areas of high criminality and negotiate with local communities to reduce crime. Linked to growth of criminal gangs has been the increase in illegal economies. The biggest has long been the smuggling of subsidized fuel, the cheapest in the world to buy, into Brazil and Colombia. This is now largely in the hands of the National Guard, working with Colombian groups. But a far more widespread series of black markets was created via the system of government subsidies on foodstuffs and medicines. This black market has fed the growth of criminal actors, who profit from their trading or smuggling.

5. High levels of violence by state and non-state actors. While there are no official homicide statistics, the most realistic data on murders is provided by Venezuela’s Violence Observatory. It placed Venezuela at 89 homicides per 100,000 of population during 2017, making the nation the most dangerous in Latin America, in a region with the highest homicides rates in the world. Caracas ranks as one of the deadliest cities on the planet, with a murder rate of 130 per 100,000. Of the 26,616 homicides registered by the OVV in 2017, 5,535 occurred at the hands of the security forces, a very high proportion, amid widespread accusations of extrajudicial killings, often in the context of the Operations to Liberate the People. These are anti-crime offensives, launched by President Nicolás Maduro, aimed at bringing down rampant crime rates. 6. The Exportation of Criminality. Colombian drug trafficking organizations and warring factions have set up shop, turning Venezuela into a logistics base, safe haven and one of the principal transit nations for Colombian cocaine. Venezuela is becoming a net exporter of criminality. In the article on the cocaine pipeline from Venezuela through the Caribbean, “Dominican Republic and Venezuela: Cocaine Across the Caribbean,” we track the growing involvement of Venezuelans in a wide variety of criminal activities.

7. Widespread international accusations of criminal behavior. Another indicator of a mafia state is when enough international actors question a state’s legitimacy, not just on its democratic credentials, but for criminal activity. Not surprisingly, the United States has taken the lead in condemning the Venezuelan government. In one of the most recent declarations, Nikki Haley, the US Ambassador to the United Nations, said that ordinary Venezuelans were “the unwilling victims of a criminal narco-state.” Colombia’s president, Juan Manuel Santos has accused the Maduro administration of “using criminal gangs to be able to exercise better control over society, over the people, a macabre association of criminal gangs with security forces to control the population.” The United Nations has received reports of “hundreds of extrajudicial killings in recent years, both during protests and security operations,” the UN High Commissioner for Human Rights Zeid Ra’ad al-Hussein stated. Panama placed 54 Venezuelan government figures, including President Maduro, on a list of persons at “high risk” of engaging in money laundering or financing terrorism. The European Union placed sanctions on seven senior government officials, including Interior Minister Nestor Reverol, Supreme Court president Maikel Moreno, intelligence chief Gustavo Gonzalez Lopez and the number two of the ruling socialist party, Diosdado Cabello. They are now subject to asset freeze and travel bans. Even Switzerland, not known for its aggressive foreign policy, announced sanctions against Venezuela, stating it was “seriously concerned by the repeated violations of individual freedoms in Venezuela, where the principle of separation of powers is severely undermined and the process in view of the forthcoming elections suffers from a serious lack of legitimacy.” This article is part of a multipart investigation looking at organized crime in Venezuela. See other parts of the series here and the full report here: (InSightCrime: https://www.insightcrime.org/investigations/seven-reasons-venezuela-mafia-state/)

 

ANNEX: Publication of new Venezuela-related Designations

Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing Venezuela-related General License 6.  General License 6 authorizes U.S. persons to engage in specified transactions related to winding down or maintaining business with GLOBOVISION Tele C.A. and GLOBOVISION Tele CA, Corp. and their subsidiaries until January 8, 2020. OFAC is issuing a new FAQ about General License 6. In addition, OFAC has updated its SDN list. The following individuals have been added to OFAC's SDN List: 

 

DIAZ GUILLEN, Claudia Patricia (a.k.a. DIAZ, Claudia; a.k.a. DIAZ-GUILLEN, Claudia), Cap Cana, Dominican Republic; Spain; DOB 25 Nov 1973; citizen Venezuela; Gender Female; Cedula No. 11502896 (Venezuela); Passport 030415788 (Venezuela) expires 22 Nov 2014 (individual) [VENEZUELA-EO13850].

 

GONZALEZ DELLAN, Leonardo (a.k.a. GONZALEZ, Leonardo), London, United Kingdom; DOB 11 Sep 1966; citizen Venezuela; Gender Male; Cedula No. 8639102 (Venezuela); Passport 073785390 (Venezuela) expires 01 Jul 2018; alt. Passport 046041771 (Venezuela) expires 24 May 2016; alt. Passport 002272834 (Venezuela) expires 14 Aug 2012 (individual) [VENEZUELA-EO13850].

 

GORRIN BELISARIO, Raul (a.k.a. GORRIN BELISARIO, Raul Antonio; a.k.a. GORRIN BELISARIO, Raul Antonio De La Santisima Trinidad; a.k.a. GORRIN, Raul; a.k.a. GORRIN, Raul A; a.k.a. GORRIN, Raul Antonio; a.k.a. GORRIN-BELISARIO, Raul Antonio De La Santisima), 4100 Salzedo Street, Apt. 1010, Miami, FL 33146, United States; 4100 Salzedo St., Unit 804, Coral Gables, FL 33146, United States; 144 Isla Dorada Blvd., Coral Gables, FL 33143, United States; DOB 22 Nov 1968; citizen Venezuela; Gender Male; Cedula No. 8682996 (Venezuela); Passport 129603081 (Venezuela) expires 14 Oct 2020; alt. Passport 066936455 (Venezuela) expires 10 Jan 2018; alt. Passport 007931220 (Venezuela) expires 24 Jan 2013 (individual) [VENEZUELA-EO13850].

 

PERDOMO ROSALES, Gustavo Adolfo (a.k.a. PERDOMO ROSALES, Gustavo A; a.k.a. PERDOMO, Gustavo; a.k.a. PERDOMO, Gustavo A; a.k.a. PERDOMO, Gustavo Adolfo; a.k.a. PERDOMO-ROSALES, Gustavo), 4100 Salzedo St., Unit 804, Coral Gables, FL 33146, United States; 18555 Collins Avenue, Unit 4405, Sunny Isles, FL 33160, United States; DOB 05 Feb 1979; citizen Venezuela; Gender Male; Cedula No. 14585388 (Venezuela); Passport 083119116 (Venezuela) expires 28 Jan 2019; alt. Passport 023639834 (Venezuela) expires 13 Jun 2014 (individual) [VENEZUELA-EO13850].

 

PERDOMO ROSALES, Maria Alexandra (a.k.a. DE PERDOMO, Maria A; a.k.a. DE PERDOMO, Maria Alejandra; a.k.a. PERDOMO, Maria Alexandra; a.k.a. PERDOMO-ROSALES, Maria), 144 Isla Dorada Blvd., Coral Gables, FL 33146, United States; 4100 Salzedo Street, Apt 1010, Miami, FL 33146, United States; DOB 25 Mar 1972; citizen Venezuela; Gender Female; Cedula No. 10538067 (Venezuela); Passport 135278046 (Venezuela) expires 14 Oct 2020; alt. Passport 079280833 (Venezuela) expires 22 Oct 2018; alt. Passport 018516885 (Venezuela) expires 04 Dec 2013 (individual) [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul).

 

TARASCIO-PEREZ, Mayela Antonina (a.k.a. DE PERDOMO, Mayela T; a.k.a. DE PERDOMO, Mayela Tarascio; a.k.a. TARASCIO DE PERDOMO, Mayela A; a.k.a. TARASCIO DE PERDOMO, Mayela Antonina; a.k.a. TARASCIO, Mayela; a.k.a. TARASCIO-PEREZ, Mayela), 4100 Salzedo St., Unit 804, Coral Gables, FL 33146, United States; DOB 20 Feb 1985; citizen Venezuela; Gender Female; Passport 083111668 (Venezuela) expires 28 Jan 2019; alt. Passport 023639818 (Venezuela) expires 13 Jun 2014; alt. Passport C1453352 (Venezuela) expires 02 Nov 2009 (individual) [VENEZUELA-EO13850] (Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

VELASQUEZ FIGUEROA, Adrian Jose (a.k.a. VELASQUEZ, Adrian), Cap Cana, Dominican Republic; Spain; DOB 02 Nov 1979; citizen Venezuela; Gender Male; Cedula No. 13813453 (Venezuela); Passport 024421568 (Venezuela) expires 25 Jun 2014 (individual) [VENEZUELA-EO13850].

 

The following entities have been added to OFAC's SDN List:

 

CONSTELLO INC., Saint Kitts and Nevis [VENEZUELA-EO13850] (Linked To: TARASCIO-PEREZ, Mayela Antonina; Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

CONSTELLO NO. 1 CORPORATION, 4100 Salzedo Street, Unit 804, Coral Gables, FL 33146, United States; DE, United States [VENEZUELA-EO13850] (Linked To: TARASCIO-PEREZ, Mayela Antonina; Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

CORPOMEDIOS GV INVERSIONES, C.A., Calle Alameda Quinta Globovision Pb, Libertador, Caracas, Venezuela [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul; Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

CORPOMEDIOS LLC, 4100 Salzedo Street, Unit 804, Coral Gables, FL 33146, United States [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul; Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

GLOBOVISION TELE C.A. (a.k.a. GLOBOVISION), Caracas, Venezuela [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul; Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

GLOBOVISION TELE CA, CORP., 4100 Salzedo Street, Unit 804, Coral Gables, FL 33146, United States [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul; Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

MAGUS HOLDING II, CORP., 4100 Salzedo St., Unit 804, Coral Gables, FL 33146, United States; 140 Paloma Drive, Coral Gables, FL 33143, United States [VENEZUELA-EO13850] (Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

MAGUS HOLDING LLC, 4100 Salzedo St., Unit 804, Coral Gables, FL 33146, United States [VENEZUELA-EO13850] (Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

MAGUS HOLDINGS USA, CORP., 4100 Salzedo St., Unit 804, Coral Gables, FL 33146, United States [VENEZUELA-EO13850] (Linked To: PERDOMO ROSALES, Gustavo Adolfo; Linked To: TARASCIO-PEREZ, Mayela Antonina).

 

PLANET 2 REACHING, INC., DE, United States; 7043 Fisher Dr., Unit 7043, Miami Beach, FL 33109-0064, United States [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul).

 

POSH 8 DYNAMIC, INC., 18555 Collins Avenue, Unit 4401, Sunny Isles, FL 33160, United States; DE, United States [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul).

 

POTRICO CORP., DE, United States [VENEZUELA-EO13850] (Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

RIM GROUP INVESTMENTS I CORP., 4100 Salzedo Street, Apt 1010, Miami, FL 33146, United States; 4100 Salzedo Street, Unit 608, Coral Gables, FL 33146, United States; 4100 Salzedo Street, Unit 807, Coral Gables, FL 33146, United States [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul; Linked To: PERDOMO ROSALES, Maria Alexandra).

 

RIM GROUP INVESTMENTS II CORP., 4100 Salzedo Street, Apt 1010, Miami, FL 33146, United States; 4100 Salzedo Street, Unit 813, Coral Gables, FL 33146, United States; 4100 Salzedo Street, Unit 913, Coral Gables, FL 33146, United States [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul; Linked To: PERDOMO ROSALES, Maria Alexandra).

 

RIM GROUP INVESTMENTS III CORP., 4100 Salzedo Street, Apt 1010, Miami, FL 33146, United States; 144 Isla Dorada Blvd., Coral Gables, FL 33143, United States [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul; Linked To: PERDOMO ROSALES, Maria Alexandra).

 

RIM GROUP INVESTMENTS, CORP., 4100 Salzedo Street, Apt 1010, Coral Gables, FL 33146, United States [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul; Linked To: PERDOMO ROSALES, Maria Alexandra).

 

RIM GROUP PROPERTIES OF NEW YORK II CORP., 675 Third Avenue, 29th FL., New York, NY 10017, United States; 20 West 53rd Street, Unit 47A, New York, NY 10019, United States; 60 Riverside Boulevard, PH 3602, New York, NY 10069, United States [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul).

 

RIM GROUP PROPERTIES OF NEW YORK, CORP., 4100 Salzedo St., Unit 1010, Coral Gables, FL 33146, United States [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul).

 

SEGUROS LA VITALICIA C.A. (a.k.a. LA VITALICIA), Caracas, Venezuela; National ID No. J310205361 (Venezuela) [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul).

 

TINDAYA PROPERTIES HOLDING USA CORP., 675 Third Avenue, 29th Floor, New York, NY 10017, United States [VENEZUELA-EO13850] (Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

TINDAYA PROPERTIES OF NEW YORK CORP., 155 SW 25th Road, Miami, FL 33129, United States; 330 East 57th Street, Unit 12, New York, NY 10022, United States [VENEZUELA-EO13850] (Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

TINDAYA PROPERTIES OF NEW YORK II CORP., 675 Third Avenue, 29th Floor, New York, NY 10017, United States [VENEZUELA-EO13850] (Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

WINDHAM COMMERCIAL GROUP INC., Panama [VENEZUELA-EO13850] (Linked To: GORRIN BELISARIO, Raul; Linked To: PERDOMO ROSALES, Gustavo Adolfo).

 

The following aircraft has been added to OFAC's SDN List:

 

N133JA; Aircraft Model Mystere Falcon 50EX; Aircraft Manufacturer's Serial Number (MSN) 268; Aircraft Tail Number N133JA (aircraft) [VENEZUELA-EO13850] (Linked To: PERDOMO ROSALES, Gustavo Adolfo).

(US Department of the Treasury: https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20190108.aspx)