September 10, 2019

International Trade

115,811 tons of bulk cargo have been offloaded at Puerto Cabello from the BOSPHORUS PRINCE and BULKTEC, including 58,677 tons of soy paste, plus 32,000 tons from MV EUROSKY, and over 30,000 tons of White corn aboard the WESTERN LUCREZIA, according to the local port authority. The port also reports receiving 4,952 tons of goods from the AS FABIANA, CFS PALAMEDES, PERITO MORENO, MAERSK WISMAR, MV VICTORIA, CONTSHIP RAY, NIKOLAS and AS ANGELINA. More in Spanish: (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=43637)

 

Oil & Energy

Iran, Venezuela supply cut tightens heavy oil market

India's NAYARA Energy Ltd, part-owned by a consortium led by Russian oil major ROSNEFT, is scouting for ultra-heavy oil amid tightening supply following U.S. sanctions against Iran and Venezuela, its vice-president said on Tuesday. "Iran and Venezuela have taken 3.5 million barrels per day (bpd) out of the market," said Ashutosh S Deshpande, referring to the impact of sanctions restricting supplies from those countries. (The Economic Times: https://economictimes.indiatimes.com/industry/energy/oil-gas/nayara-says-iran-venezuela-supply-cut-tightens-heavy-oil-market/articleshow/71062313.cms)

 

Economy & Finance

The Bank of Spain denies being used by Caracas to move money

The Bank of Spain denied being used by the Government of Venezuela as a tool to move its money, as published by the Bloomberg agency, which accused Caracas of using the Spanish central bank to avoid the sanctions that prevent it access to commercial banking services. "The account referred to in the news only allows transfers to be made with origin and destination at the Central Bank of Venezuela. It has been open for years and is one of the accounts that several central banks have opened at the Bank of Spain," Bank of Spain sources explained. According to the sources consulted, the account balance is "relatively small" and "had no significant variation in the last year" "Basically, it is being used to pay the usual operating expenses of diplomatic relations between the two countries and by supranational organizations to send funds to their offices in Venezuela, since they cannot use the commercial banking channel," they add from the Bank of Spain. On September 9, Bloomberg published that President Nicolás Maduro "had found an ally in the Bank of Spain" after "an increasing number of banks around the world refused to move their money." It added that: Venezuelan central bank officials are telling contractors that going through the Bank of Spain is an option to make and receive payments outside of the country, while warning that it may still take at least a month to clear transactions due to increased scrutiny, one of the people said.(MBS News: https://www.mbs.news/2019/09/the-bank-of-spain-denies-being-used-by-caracas-to-move-money.html; Bloomberg, https://www.bloomberg.com/news/articles/2019-09-09/maduro-regime-is-moving-its-money-through-spain-s-central-bank)

 

Maduro regime tries to reinstate price controls

Nicolás Maduro has issued orders to his economic affairs authorities to return to price controls in “concert” with agribusiness and agriculture. Ricardo Cusanno, who heads FEDECAMARAS, the nation’s largest business organization, warned the move would only bring about increased scarcity. More in Spanish: (El Universal, http://www.eluniversal.com/economia/50214/gobierno-anuncia-regreso-al-control-de-precios-en-el-pais)

 

Venezuela’s Central Bank withdrew the PETRO as an accounting unit from its portal

The Central Bank of Venezuela (BCV) decided to withdraw the Petro’s contribution as an accounting unit from its portal. In this regard, the economist and academic of the Metropolitan University Luis Oliveros told CRIPTONOTICIAS: “PETRO as an accounting unit does not exist. It was something that never existed. It was an attempt at something from the government and, as usual, it didn’t work.” He added that “without an attack on the fiscal disaster, there is no way out of hyperinflation.” The exclusion of the contribution of this asset issued by the government of Venezuela on the BCV portal has generated expectations regarding a possible wage increase, which currently stands at Bs. 40,000, which implies that this buys less than 0.00025 BTC. (Our Bit Coin News: https://ourbitcoinnews.com/venezuelas-central-bank-withdrew-petro-as-an-accounting-unit-from-its-portal/); and more in Spanish: El Nacional, https://www.elnacional.com/economia/bcv-retiro-de-su-portal-al-petro-como-unidad-contable/)

 

Politics and International Affairs

Colombia to tell UN that Venezuela harbors terrorists

A reportedly leaked Venezuelan intelligence report indicates that Nicolás Maduro's socialist regime is harboring Colombian rebels inside Venezuela, allegations that dovetail with evidence Colombian officials say they will present this month to the United Nations. Bogota-based SEMANA magazine on Sunday published a report that it said was based on Venezuelan documents showing how a top military official under instructions from Maduro ordered generals to provide support to a so-called "Red Group" at "training zones" inside Venezuela. The allegations come against the backdrop of rising tensions between the two countries after Colombian President Ivan Duque accused Maduro of providing safe haven to the former chief negotiator of the Revolutionary Armed Forces of Colombia, or FARC, who announced he was rearming. One of the alleged documents, dated Aug. 9, is signed by Adm. Remigio Ceballos, the second highest-ranking Venezuelan military officer, and directed to regional military commanders. In that document, relaying what he said are direct instructions from Maduro, Ceballos orders his subordinates to avoid entering into conflict with a so-called "Red Group at training zones" inside Venezuela. He also instructs members of the national guard in four states to provide training and logistical support to the rebels. According to the report, "Red Group" is a code word used by Venezuelan security forces to describe guerrillas from the National Liberation Army and FARC, both of which are classified as a terrorist organization by the U.S. and European Union. Ceballos posted a message on Twitter saying the documents presented by SEMANA were a falsification. Maduro's minister of communications, Jorge Rodriguez, appeared on Venezuelan state TV alleging the supposedly leaked documents were fakes. But Foreign Minister Carlos Trujillo said the news report coincides with information his government has collected showing that Maduro has repeatedly violated a U.N. Security Council resolution from 2001 banning support for terror groups. He said Duque will present the evidence when he addresses U.N. General Assembly this month. "The Maduro regime now favors and protects terrorist organizations from its territory so they can commit crimes against Colombia," Trujillo said in an interview Monday. The allegations triggered Maduro to deploy anti-aircraft missiles and order military exercises along Venezuela's western border with Colombia that are set to begin on Tuesday. Overall, Colombian authorities estimate as many as 1,000 ELN rebels — or around 40% of the group's fighting force — operate from Venezuela, where they plan attacks like the January car bombing at a Bogota police academy that killed more than 20 mostly young cadets. (AP: https://news.yahoo.com/colombia-tell-un-venezuela-harbors-135944485.html)

 

Maduro convenes Defense Council to address Colombia’s ‘war-mongering’ behavior

Nicolas Maduro has convened a National Defense Council to discuss Colombia’s alleged attempts to send terrorists and turncoat officers to Venezuela to disrupt its military infrastructure. In a televised address on Monday, Maduro pulled no punches as he went on yet another verbal offensive against Colombia and its president, Ivan Duque, accusing his government of plotting attacks on public infrastructure, as well as on civilian and military sites. Maduro further insisted that he has evidence to support his claims about Colombia’s nefarious plans to topple his government and impose Venezuela’s interim president Juan Guaido. Maduro said that that the Colombian authorities have been responsible for a total of 42 acts of aggression against Venezuela over the past three months. Some of these were aimed at undermining Venezuela’s missile defense shield and radar systems. In order to infiltrate the country’s defense infrastructure, Colombia allegedly recruited Venezuelan army officers, who, Maduro claimed, are “selling their nation.” Last week, Maduro declared an "orange alert” over a Colombian threat and deployed missile defenses to the border. He also raised the alarm over a potential false-flag attack that could be used by Duque as a pretext to start a full-fledged armed conflict and enlist support from the international community. Earlier that week, Venezuela presented satellite images purporting to show ‘terrorist’ training camps on Colombia’s territory. The Venezuelan military will begin a two-week series of exercises today along the Colombian border. Though the rhetoric is bellicose, the exercises are not infrequent– these are the third such drills this year. The Maduro regime is likely posturing and attempting to show that it still has support from and control over the country’s military, a key source of power. (RT: https://www.rt.com/news/468459-venezuela-defense-council-colombia/; Foreign Brief: https://www.foreignbrief.com/daily-news/venezuelas-to-hold-military-drills-in-border-regions-amid-tensions-with-colombia/)

 

Maduro may push anti-Trump petition at UN, US believes

Nicolas Maduro may present a petition against US President Donald Trump at the United Nations despite opposition charges that the signatures have been gathered through threats to withhold food aid, US diplomats say. Maduro, who remains in charge in Venezuela despite a half-year US-backed effort to remove him, has not yet announced if he will head to New York for the annual UN General Assembly later this month. "Our diplomats have been hearing that Maduro plans to present a petition against President Trump, signed by millions of Venezuelans, at UNGA, if he actually attends," a US official said. The Maduro government has been gathering signatures among Venezuelans as part of its "No More Trump" campaign. But the opposition says that the Maduro government has gathered the signatures through extortion over desperately needed nutritional assistance. Videos recently posted showed what appeared to be Venezuelans refusing orders to sign in exchange for receiving the aid, known locally as a CLAP box. The US State Department described Maduro's effort as a "starvation petition" and said it was evidence that he could not win a fair election. (France24: https://www.france24.com/en/20190909-venezuela-s-maduro-may-push-anti-trump-petition-at-un-us-believes)

 

Washington pushes EU for tougher sanctions on Venezuela

President Donald Trump’s envoy on Venezuela has attacked the EU as “unhelpful” and guilty of “miscalculation” over its failure to impose tougher sanctions on Nicolás Maduro’s regime.  Elliott Abrams urged the 28-member European bloc to crack down on figures linked to the regime in Caracas who were using the continent as a “kind of resort area” to buy property, bank money and go clubbing.  Mr. Abrams’ remarks during a visit to Brussels on Monday underscore the growing pressure Washington is exerting on the Europeans to help unseat Maduro’s regime, which it accuses of corruption and fomenting a humanitarian crisis.  “The Europeans are making a real miscalculation here,” Mr. Abrams warned at an event hosted by The German Marshall Fund of the United States, arguing that imposing additional Venezuela sanctions could “push the regime towards compromise”. “We do think the reluctance on the part of the EU has been unhelpful.” “A far greater number of people from the regime are now using Europe as a kind of resort area: they send their families here, their wives, their mistresses and their children, their bank accounts are here,” Mr. Abrams said. “We have repeated information about the mansions they buy, the nightclubbing of their teenage children. That should not be happening.” An EU spokesperson said the bloc would “continue to work with all the relevant actors in the region and the international community to support a peaceful and truly Venezuelan-owned solution to the crisis”. The spokesperson added that any additional sanctions would be against individuals only and targeted to avoid any harm to the wider population. Josep Borrell, the EUs new foreign policy chief set to take office in November, has expressed frustration to aides over failed efforts to build a consensus in the bloc over the recognition of Juan Guaidó as interim president. Instead, some states — including Spain — have offered recognition, while others have withheld it. (Financial Times: https://www.ft.com/content/efb62bce-d260-11e9-a0bd-ab8ec6435630)

 

Guaidó to ask OAS to call out Rio Treaty against the Maduro regime

An emissary of Venezuela’s interim president Juan Guaidó in Washington said Monday that he's garnered an 11-nation majority to impose measures aimed at ousting Maduro under the 19-member Inter-American Treaty of Reciprocal Assistance, a defense pact that could provide political cover for greater international involvement in Venezuela's crisis. Venezuela's opposition-run National Assembly led by Guaidó approved the country's return to the treaty in July, and Gustavo Tarre, Guaidó's representative to the Organization of American States, said signatory members will vote Wednesday to call for a minister-level conference so they can assess available options in the coming days. (Foreign Brief: https://www.foreignbrief.com/daily-news/venezuelas-to-hold-military-drills-in-border-regions-amid-tensions-with-colombia/)

 

Rubio supports steps taken to invoke Rio Treaty in support of Venezuela

U.S. Senator Marco Rubio (R-FL) today issued a statement following the announcement that the Organization of American States (OAS) has begun the process of invoking the Inter-American Treaty of Reciprocal Assistance, also known as the Rio Treaty, in support of the restoration of democratic order and the rule of law in Venezuela. The measure comes following Interim President’s Juan Guaidó’s request that the democratically elected National Assembly approve Venezuela’s return to the Inter-American Treaty. “I welcome the OAS’s intention to invoke the Rio Treaty to counter the Maduro regime’s menace. It is time for all of the democracies in the region to stand in support of the Venezuelan people and denounce any attack by the Maduro regime as an attack against all members. I applaud the leadership of U.S. Ambassador to the OAS Carlos Trujillo and Venezuelan Ambassador to the OAS Gustavo Tarre Briceño, who have tirelessly worked in support of the cause of freedom from tyranny in Venezuela.” Rubio is Chairman of the Senate Foreign Relations Subcommittee on the Western Hemisphere. (Rubio:

https://www.rubio.senate.gov/public/index.cfm?p=Press-Releases&id=8A86CFAD-F318-49B1-AAA7-583E80963C80)

 

Killings, torture still going on in Venezuela: U.N. rights chief

The United Nations’ chief human rights official said Monday that millions of Venezuelans continue to suffer rights violations, including dozens of possible extrajudicial killings carried out by a special police force. Non-governmental organizations report that the Special Action police force carried out 57 suspected extrajudicial killings in July alone within Caracas, Michelle Bachelet said in an oral presentation on Venezuela to the U.N. Human Rights Council in Geneva. Bachelet’s latest presentation followed a scathing written report issued in early July that drew a government backlash. It found a “pattern of torture” under the regime of Nicolás Maduro and citing violations like arbitrary detention, extrajudicial killings, sexual violence and enforced disappearances. Bachelet’s latest presentation, which also received pushback from powerful figures in Maduro’s government, noted some areas of progress, while pointing to more cases of human rights violations and declining conditions as more than 4 million Venezuelan have fled a country beset by hyperinflation that leaves monthly minimum wages equal to US$ 2. While Bachelet said she had called for officials to dismantle the feared Special Action police force, the unit has actually received ongoing support from the highest levels of the government, she said. Bachelet raised concern that groups that collaborated with her in the earlier report have since come under criticism and threats by senior officials. “Reprisals for having cooperated with the United Nations are unacceptable,” she said. “I urge the authorities to take preventative measures.” The only way to overcome Venezuela’s human rights crisis is for Maduro’s government and the opposition led by National Assembly President Juan Guaidó to return to negotiations overseen by Norway, Bachelet said, and renewed her offer to support all such efforts. Some Latin American countries and activists are urging the Geneva forum, whose 47 members include Venezuela, to establish a U.N. Commission of Inquiry on Venezuela at the three-week session. (The Washington Post: https://www.washingtonpost.com/world/the_americas/un-human-rights-chief-cites-continued-abuses-in-venezuela/2019/09/09/7d00fbe2-d321-11e9-8924-1db7dac797fb_story.html; VOA: https://www.voanews.com/americas/un-human-rights-chief-cites-continued-abuses-venezuela; Daily Mail: https://www.dailymail.co.uk/news/article-7446781/Nicolas-Maduros-death-squads-executed-57-people-just-one-month-Venezuela.html; Reuters: https://www.reuters.com/article/us-venezuela-security-un/killings-torture-still-going-on-in-venezuela-u-n-rights-chief-idUSKCN1VU1IB)

 

Venezuela opposition parties back Guaido as congress chief in 2020

Venezuelan lawmakers from small opposition parties on Friday said Juan Guaido should continue as head of congress in 2020, waiving their option to lead the legislature under an informal agreement to rotate leadership between parties. The announcement ended speculation of an opposition rift over the 2020 legislative term, which under a 2016 agreement within the opposition would have fallen to a group of 17 small parties. Guaido in January declared President Nicolas Maduro a usurper and assumed a rival interim presidency that has been recognized by more than 50 countries, and the opposition is keen for him to remain in the post. (Reuters, https://www.reuters.com/article/us-venezuela-politics/venezuela-opposition-parties-back-guaido-as-congress-chief-in-2020-idUSKCN1VR2FS)

 

Maduro rejects talks with opposition over alleged envoy's remarks

President Nicolás Maduro says that he won't resume talks with the opposition until it rejects alleged calls by a top supporter in Britain to "drop the topic" of Venezuela's longstanding claims to an oil-rich part of neighboring Guyana.

Maduro's comments late Friday came after his chief prosecutor opened an investigation against Vanessa Neumann, the top envoy in London for opposition leader Juan Guaidó, who is recognized as Venezuela's rightful president by the U.S., United Kingdom and four dozen other nations. But Maduro last month broke off the talks taking place on the Caribbean island of Barbados over the opposition's support for tougher U.S. sanctions to punish companies from third countries that do business in Venezuela. Both Guaidó and Neumann have dismissed the claim as false. (Bloomberg, https://www.bloomberg.com/news/articles/2019-09-07/maduro-rejects-talks-with-opposition-over-envoy-s-remarks)

 

Russian diplomat claims US undoubtedly pulling strings to form a Guaido government

The decision by Venezuelan opposition leader Juan Guaido to form his own government is another ploy to legitimize dual power in the country and create a pseudo-legal reality, Russian Foreign Ministry Spokeswoman Maria Zakharova said on Wednesday. "We see this decision as another dangerous endeavor to legitimize dual power and create a pseudo-legal reality that leads to the further polarization of Venezuelan society, and delays the search for a compromise solution, which Venezuela needs so much in order to improve the humanitarian situation and return to the path of sustainable development. There is no doubt as to who orchestrated Guaido’s statement," she specified. According to Zakharova, that was predictable, given the fact that many of Guaido’s so-called ministers had long been on the payroll *of organizations sponsored by US NGOs. (TASS: https://tass.com/politics/1076433)

 

5.5 magnitude earthquake in Venezuela

A 5.5 magnitude earthquake occurred 18 kilometers from the town of Araya, near the coast of Venezuela. No injuries or damages were reported as a result of the quake. Shock waves were observed at a depth of just 5.9 kilometers in the sea, more than 200 kilometers from Caracas. (Novinite: https://www.novinite.com/articles/200052/5.5+Magnitude+Earthquake+in+Venezuela)

 

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.

August 29, 2019

International Trade

Over 4000 tons of food and general cargo have arrived at Guanta port

The local port authority reports that 4303 tons of food and general cargo have arrived at Guanta in 249 containers aboard the CFS PALAMEDES. Cargo includes wheat flour, spaghetti, packaged beans, tuna, along with oil industry equipment and tires. More in Spanish; (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=43618)

 

Oil & Energy

China helps Venezuela boost oil production

China has financed the construction of a new oil blending plant in Venezuela that will boost the country’s flagging oil production by 120,000 bpd, IHS Markit reports, citing an investment of US$ 3 billion, provided by China’s CNPC, PDVSA’s partner in the SINOVENSA venture that will operate the new plant.  SINOVENSA is 49% owned by the Chinese state giant and 51% owned by PDVSA. It currently produces 100,000 bpd in the Orinoco belt. The crude is a medium grade of the Orinoco super heavy that’s then mixed with light crude to make the Merey blend, which, along with other medium grades, are in high demand among Asian refiners. The latest news suggests that China has no intention of changing course about Venezuela no matter what the U.S. decides to do in response. And it seems it is not the only one: India, according to IHS Markit shipping data, still buys Venezuelan oil in defiance of U.S. warnings. The average import rate since June has been about 450,000 bpd. That’s a solid part of Venezuela’s total production, as calculated by OPEC secondary sources. For July, the figure stood at 742,000 bpd. (Oil Price: https://oilprice.com/Energy/Crude-Oil/China-Helps-Venezuela-Boost-Oil-Production.html)

 

Commodities

Venezuela's trees suffer as firewood replaces scarce cooking gas

Chronic shortages of natural gas in the country with the world’s largest oil reserves now mean that cooking fuel is increasingly coming from trees. The growing use of firewood has triggered alarm among activists who say discussions of environmental problems are often eclipsed by diatribes about runaway inflation, economic collapse and a protracted political stalemate. Fires and home construction in the last 40 years have deforested about 10% of Henri Pittier Park, said Enrique Garcia, director of the ecological group Let’s Plant. In addition, he said, the collection of firewood in urban areas can cause respiratory problems from smoke, rising temperatures in cities and increased risk of landslides in poor communities where houses are often built on unsteady terrain. Wood stoves are now a common sight across Venezuela because of the shortage of gas. Tanks used to store, and transport propane are in disrepair for lack of maintenance. In some cases, people burn trash next to a tree to dry it out so the tree can be cut down and used for cooking fuel. Authorities are broadly ignoring legislation that prohibits cutting down trees without permits. Some cities have so little tree cover that those in search of firewood must walk for miles. (https://www.euronews.com/2019/08/29/venezuelas-trees-suffer-as-firewood-replaces-scarce-cooking-gas)

 

Economy & Finance

Venezuela’s cash reserves shoot up from PDVSA despite sanctions

PDVSA’s sales to China just netted Venezuela a cool US$ 700 million, increasing its reserves to US$ 8.8 billion. Most of the US$ 700 million was in the form of the Chinese yuan and comes from back payments made to PDVSA for its crude oil deliveries to China. The payments had been delayed due to the US sanctions on Venezuela and PDVSA, as both parties struggled to come up with a way to send and receive payments in the face of those sanctions. Venezuela has also sold some crude oil for euros cash via intermediaries. It has also sold gold for euros as well as it tries to make up for lost oil revenue. It took out eight tons of gold in April for sale abroad. Venezuela has seemingly abandoned the dollar trade for its crude oil for fear of running afoul of the US sanctions on the Latin American country. This push away from digital transactions will make it more difficult to track where money is coming from and where it’s going to. (Oil Price: https://oilprice.com/Latest-Energy-News/World-News/Venezuelas-Cash-Reserves-Shoot-Up-From-PDVSA-Despite-Sanctions.html)

 

GAZPROMBANK completes transfer of stake in sanctions-hit lender

GAZPROMBANK said on Wednesday it had completed its handover of a stake in Russian-Venezuelan lender EVROFINANCE MOSNARBANK, which was placed under U.S. sanctions, to Russia’s state property management agency. The United States announced sanctions on EVROFINANCE MOSNARBANK in March for its dealings with Venezuelan state oil company Petroleos de Venezuela SA (PDVSA). (Reuters, https://www.reuters.com/article/us-russia-banks-venezuela-gazprombank/gazprombank-completes-transfer-of-stake-in-sanctions-hit-lender-idUSKCN1VI1ES)

 

Maduro official says remittance platform for Petro is ready to use

National Superintendent of Cryptoactives Joselit Ramírez has announced that crypto remittance platform Patria Remesa is live and functioning. Additionally, Ramírez highlighted his confidence in the platform’s safety, as well as how the Venezuelan cryptocurrency El Petro (PTR) allegedly hedges against economic depreciation. Given the Venezuelan government’s history of not delivering on promises related to the PETRO, COINTELEGRAPH advises readers to approach Ramírez’s announcement with skepticism. (Cointelegraph, https://cointelegraph.com/news/venezuelan-official-says-remittance-platform-for-petro-is-ready-to-use)

 

Politics and International Affairs

U.S. offers amnesty to Maduro, if he leaves power

A top American diplomat said the United States would not prosecute or otherwise seek to punish Nicolás Maduro if he voluntarily left power, despite bringing his country to the verge of economic collapse and humanitarian disaster. Elliott Abrams, the State Department’s special envoy for Venezuela, said he had seen no indication that Maduro was willing to step down. But his offer of amnesty was a message to Maduro after both countries’ leaders described high-level talks that Abrams unequivocally said did not happen. “This is not a persecution,” Abrams said of Mr. Maduro on Tuesday evening in an interview. “We’re not after him. We want him to have a dignified exit and go.” He added: “We don’t want to prosecute you; we don’t want to persecute you. We want you to leave power.” The Treasury Department last year accused Maduro of profiting from illegal drug trafficking in Venezuela but did not recommend charges. The softer, if pragmatic, appeal sharply contrasted with the eight months of sanctions, international isolation and threats by the Trump administration of military intervention against Maduro and his loyalists, who are accused of hoarding power and manipulating elections last year. Opposition leaders in Venezuela have not offered immunity to Maduro, whom they accuse of prospering in a corrupt government that has left many Venezuelans without food, electricity or medical supplies.  “The notion that we are negotiating is just flat-out wrong,” Abrams said. “And the notion that there is a pattern of communication is wrong. There are intermittent messages and I think people would find the very occasional message sent from Washington to be completely predictable: ‘You need to return to democracy. Maduro needs to leave power.’” The comments are likely to soothe Venezuela’s opposition leaders, who have privately said Trump’s statement risked sidelining their own negotiations. A delegation headed by the opposition’s chief political negotiator, Stalin González, traveled to Washington last week to press American officials on the Trump administration’s policy in Venezuela. Abrams said he did not currently see any value in talking directly to the Maduro regime. Abrams maintained on Tuesday that the United States would not lift sanctions against Venezuela unless Maduro steps down. Abrams said the Trump administration would not support new national elections with an incumbent — either Maduro or Mr. Guaidó — on the ballot. If either man wanted to run for the presidency, Abrams said, he should first leave office to prevent concerns about election tampering by the government. And he predicted that Guaidó would formally close the negotiations by Oct. 1 to prevent them from dragging on without resolution. “It’s pretty clear that he has not yet reached the conclusion that it is hopeless,” Abrams said, adding: “He may reach that conclusion tomorrow.” Any offer of amnesty by the United States would have limits. A White House official has previously told The New York Times that the Trump administration would be unable to remove any federal drugs charges that several of Maduro’s top confidants and relatives face. (The New York Times: https://www.nytimes.com/2019/08/28/world/americas/us-amnesty-venezuela-maduro.html)

 

US Department of State announces the opening of the Venezuela Affairs Unit (VAU), under the leadership of Charge d’Affaires James Story. The VAU is the interim diplomatic office of the U.S. Government to Venezuela, located at the U.S. Embassy in Bogota‎, Colombia, and has been established with bipartisan support from the U.S. Congress.  The VAU is continuing the U.S. mission to the legitimate Government of Venezuela and to the Venezuelan people.  The VAU will continue to work for the restoration of democracy and the constitutional order in that country, and the security and well-being of the Venezuelan people. The VAU interacts with the government of interim president Juan Guaidó, the democratically elected National Assembly, Venezuelan civil society, and the people of Venezuela.  The United States welcomes the support of the Government of Colombia, which is a further demonstration of its steadfast commitment to democracy and peace in the region. The United States stands with interim President Juan Guaidó, the National Assembly, and the people of Venezuela as they seek to regain their democracy. (State Department: https://www.state.gov/creation-of-the-venezuela-affairs-unit/; VOA: https://www.voanews.com/usa/us-sets-diplomatic-mission-venezuela-colombia; Reuters, https://www.reuters.com/article/us-venezuela-politics-usa/u-s-opens-venezuelan-diplomatic-office-in-colombian-capital-idUSKCN1VI1Y9)

 

Venezuela's Guaidó names shadow cabinet to help oust Maduro

Venezuela’s interim president Guaidó named a new shadow cabinet on Wednesday, launching the latest phase of his campaign aimed at forcing Nicolas Maduro from power.  The new team — including heavyweight opposition figures Leopoldo Lopez and Julio Borges — will be dedicated to preparing for a transitional government and new elections, said Guaidó, who claimed presidential powers in late January as head of the National Assembly, saying Maduro's election last year was a fraud. Guaidó's so-called interim government functions more tangibly outside of Venezuela than at home.  Guaidó said he's calling on his political mentor Lopez to serve as general coordinator, though Lopez has lived in the Spanish ambassador's home in Caracas for protection since launching a failed military uprising with Guaidó on April 30.  Opposition lawmaker Borges, who lives in exile in Colombia, will oversee Guaidó's foreign relations, and other members of his team will deal with economic development, asset recovery and human rights. (VOA: https://www.voanews.com/americas/venezuelas-Guaidó-names-shadow-cabinet-help-oust-maduro)

 

Venezuela condemned by OAS for 'systematic' rights abuses

The Organization of American States passed a resolution Wednesday condemning "grave and systematic" human rights abuses in Venezuela and demanded an independent investigation. The regional security body, which comprises every country in the western hemisphere but Cuba, passed the resolution by a 21 to 3 vote. Seven members abstained and three were absent for the vote. The resolution echoed charges of torture, extrajudicial killings and force disappearances made last month against Venezuela's leftist regime by UN human rights chief Michelle Bachelet. It condemned "the grave and systematic violations of human rights in Venezuela, including the use of torture, illegal and arbitrary detentions, extrajudicial executions, forced disappearances and the denial of the most basic rights and necessities, especially those related to health, food and education." It also called for "an independent, exhaustive and credible investigation" to bring the perpetrators to justice and demanded that Venezuela grant "immediate and unhindered" access to the Inter-American Commission on Human Rights. The resolution was presented by Argentina, Brazil, Canada, Chile, Colombia, Costa Rica, the United States, Guatemala, Paraguay and Peru. (France24: https://www.france24.com/en/20190828-venezuela-condemned-by-oas-for-systematic-rights-abuses)

 

Maduro says dialogue only way to overcome political deadlock

Dialogue is the only means to overcome political deadlock in Venezuela, Nicolas Maduro told Xinhua in an exclusive interview. He said he has proposed the idea of a "permanent negotiating table" between the ruling socialist party and the opposition, as dialogue has resumed after the government side briefly walked away from the talks to protest stepped-up U.S. sanctions. "I have proposed creating a permanent mechanism for dialogue, a permanent negotiation table, which is capable of withstanding any storm, any difficulty, any situation -- dialogue, dialogue for peace," he stressed. Maduro said he has also proposed that the two sides discuss the main problems facing Venezuela and "seek agreed-on, shared solutions." "I can report that we have resumed contact with the government of Norway, there have been several meetings, we have resumed contact with the representatives of the Venezuelan opposition," Maduro said. He expressed optimism that "in the next few days, we will announce good news about the dialogue process." "They have done us harm -- and that's how I am denouncing it to the world -- they have done great harm to the quality of life, to the living standards of the Venezuelan people, but we are in a condition to continue moving forward despite these attacks," said Maduro. (XINHUANET: http://www.xinhuanet.com/english/2019-08/29/c_138348004.htm)

 

Venezuela's political crisis talks 'not working,' says Guaidó

Venezuela's interim president Juan Guaidó admitted on Wednesday (Aug 28) that talks with the Maduro regime aimed at resolving the country's political crisis "aren't working." The two sides are deadlocked with Guaidó demanding Maduro's resignation and the government insisting the United States lift sanctions that it blames for the country's crippled economy. "At the moment there's no date to restart the mechanism mediated by the kingdom of Norway until we achieve something concrete to approach a solution," said Guaidó. He said that if the government is using the talks simply to boost its image "that serves no purpose for the Venezuelan people." (Channel News Asia: https://www.channelnewsasia.com/news/world/venezuela-s-political-crisis-talks--not-working---says-Guaidó-11850808)

 

Cuba asks Canada to help end U.S. sanctions on Venezuela

Cuban Foreign Minister Bruno Rodriguez urged Canadian counterpart Chrystia Freeland on Wednesday to help end U.S. sanctions on Venezuela in their third meeting since May on this country’s political and humanitarian crisis. Canada, a neighbor and NATO ally of the United States, also has long-standing good relations with Cuba, raising hopes it could serve as a mediator in the Venezuelan crisis. U.S. Vice President Mike Pence called on Canada in June to do more to engage directly with Cuba over what he called its “malign influence” on Venezuela. The Canadian Foreign Ministry said in a statement that Rodriguez and Freeland agreed that senior officials would stay in contact and continue to exchange views over Venezuela. (Reuters: https://www.reuters.com/article/us-venezuela-politics-cuba-canada/cuba-asks-canada-to-help-end-us-sanctions-on-venezuela-idUSKCN1VJ02G; Bloomberg, https://www.bloomberg.com/news/articles/2019-08-28/trudeau-envoy-presses-cuba-to-mediate-in-venezuelan-stalemate)

 

Venezuelans Enter Ecuador from Colombia via Secondary Route

About 1,400 Venezuelans crossed over the weekend from Colombia into Ecuador via the San Miguel Bridge, a secondary route linking the two countries, before new visa rules took effect, officials said Monday. The Venezuelans waited under the hot sun to enter Ecuador before the new visa requirements took effect on Monday.
EFE reporters confirmed that hundreds of Venezuelans waited at a CEBAF binational border service processing center in San Miguel, a city in Putumayo province. The Colombian immigration service said more than 11,000 Venezuelans left the country over the weekend, heading into Ecuador via the Rumichaca International Bridge, the main binational border crossing. Colombian immigration service officials told EFE that 103 people arrived after midnight in San Miguel with plans to enter Ecuador, which started accepting applications for humanitarian visas on Monday. Officials from the two countries started talking about allowing the Venezuelans to enter Ecuador and 83 have been admitted so far. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2482567&CategoryId=10717)

 

U.S. to pay for thousands of doses of HIV drugs for Venezuelan migrants

The United States said on Wednesday it will provide thousands of doses of HIV medication to treat Venezuelans in Colombia as part of regional efforts to manage care for millions of migrants fleeing the crisis-hit nation. U.S. Health and Human Services (HHS) Secretary Alex Azar told Reuters about the decision in a phone interview following a meeting this week of health officials from 10 countries in the Colombian border city of Cucuta. The officials agreed to various measures meant to help the more than 4 million Venezuelans who have left home amid widespread shortages of food and medicine. (Reuters, https://www.reuters.com/article/colombia-usa-health/u-s-to-pay-for-thousands-of-doses-of-hiv-drugs-for-venezuelan-migrants-idUSL2N25O1DV)

 

Venezuelan migrant who sings for tips gets shot at stardom after chance meeting

When Mexican singer Mario Domm overheard a Venezuelan migrant crooning Domm’s own song in exchange for coins outside a restaurant in Bogota, Colombia, he was moved to tears by the young man’s powerful voice. Now Domm is helping the singer, 22-year-old Alexander Beja, pursue his dream of musical stardom. Beja is one of 1.4 million Venezuelans now living in Colombia, after fleeing a deep political and economic crisis in their home country that has caused long-running shortages of food and medicine. The young singer arrived in Colombia last year and began to sing regularly on the streets of northern Bogota, in hopes of earning what money he could. On the day last month when he was overheard by Domm, Beja was singing a tune called “Venezuela.” “He had a voice like a bazooka,” said Domm, who founded the pop group Camila in 2005. “He has to use it.” (Reuters, https://www.reuters.com/article/us-venezuela-migration-colombia-music/venezuelan-migrant-who-sings-for-tips-gets-shot-at-stardom-after-chance-meeting-idUSKCN1VH1KL)

 

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.

July 18, 2019

Logistics & Transport

U.S. Department of Transportation suspends air service to and from Venezuela

The U.S. Department of Transportation Office issued a notice this week announcing the suspension of air service to and from Venezuela. Venezuela imports fresh crab meat that is flown into the U.S., and the suspension of air service could potentially impact the market. Most of this product is used on the East Coast of the U.S. With the summer season quickly approaching, this suspension is coming at a time that is the highest demand period of the year. (Seafood News: https://www.seafoodnews.com/Story/1141620/US-Department-of-Transportation-Suspends-Air-Service-to-and-from-Venezuela)

 

Oil & Energy

Opposition-controlled CITGO plans to borrow US$ 1.9 billion as 2020 bond payment nears

CITGO Holding Inc., the refining company whose operations are largely under the control of Venezuela’s political opposition, plans to issue new debt to pay back US$ 1.9 billion of bonds that mature in February. The refinancing would include US$ 1.4 billion of senior secured notes due in 2024 and a US$ 500 million senior secured term loan B facility that matures in four years, the Houston-based company said in a statement. It didn’t say who is advising on the proposed deal. That offering’s success may depend upon a Delaware court’s ruling about the legitimacy of two rival corporate boards at state-owned oil giant Petroleos de Venezuela SA, the parent of CITGO. One board was appointed by Nicolas Maduro; the other one by the National Assembly leader Juan Guaidó. Oral arguments are set to be held Thursday. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2481128&CategoryId=10717)

 

Fitch raises Venezuela's opposition-controlled Citgo rating on new bond

Fitch Ratings has upgraded the long-term IDR of CITGO Holding, Inc. (Holdco) to 'CCC+' from 'CCC', upgraded the ratings of all senior secured debt at Holdco to 'B+'/'RR1' from 'B'/'RR1', and assigned a 'B+'/'RR1(EXP)' rating to the new Holdco secured notes and term loan. Proceeds from the new secured notes and term loan will be used to pay off the company's existing 10.75% 2020 Holdco notes. Fitch has also affirmed the long-term IDR of CITGO Petroleum Corp. (Opco) at 'B and affirmed the 'BB'/'RR1' ratings for Opco's secured notes, term loan and IRBs. The Outlook at Opco remains Stable. The main drivers for today's actions are the company's successful expected refinancing of its US$ 1.875 billion 2020 Holdco maturity, which addresses near-term refinancing issues at HOLDCO and helps reduce contagion risk for CITGO through favorable revisions to change in control indenture language. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2481121&CategoryId=10717)

 

Moody's rates new CITGO US$ 1.9 billion debt issue Caa1

Moody's Investors Service (Moody's) assigned a Caa1, LGD4 rating to CITGO Holding, Inc.'s proposed up to US$ 1.37 billion in senior secured notes due 2024 and up to US $500 million in proposed senior secured term loan B due 2023. Proceeds from the transactions will be used to refinance US$ 1.87 billion in senior secured notes due 2020. The outlook is stable. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2481133&CategoryId=10717)

 

S&P rates new US$ 1.9 billion CITGO Debt at B

S&P Global Ratings today assigned its 'B' issue-level rating and '2' recovery rating to CITGO Holding Inc.'s US$ 500 million senior secured term loan B due 2023 and US$ 1.37 billion senior secured notes due 2024 and put the issue-level ratings on CreditWatch with developing implications, where we placed all of our ratings on the company on Dec. 7, 2017. The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 80%) recovery in the event of a default. The company intends to use the net proceeds from the senior notes to refinance its existing outstanding $1.87 billion 10.75% notes. Therefore, we view this transaction as leverage neutral. Our issuer credit ratings on CITGO Holding Inc. and subsidiary CITGO Petroleum and the issue ratings on their debt are unchanged and remain on CreditWatch with developing implications, where they were placed Dec. 7, 2017. CITGO Holding Inc. is the direct parent of CITGO Petroleum Corp., a U.S. refinery and petroleum product marketer and distributor. The company is owned by Petroleos de Venezuela S.A. (PDVSA), Venezuela's state-owned oil company. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2481132&CategoryId=10717)

 

Economy & Finance

Venezuela's debts to China, Russia would be restructured through Paris Club

Loans to Venezuela from Maduro allies Russia and China would be renegotiated though the Paris Club if Maduro leaves power, an advisor to the opposition said on Wednesday, responding to concerns about favorable treatment for the two countries. Ricardo Hausmann, who represents opposition leader Juan Guaidó at the Inter-American Development Bank (IADB), said Guaidó's team has not determined how loans might be restructured under its governance because bilateral debt talks typically take place under the auspices of the Paris Club creditor group. "It is not as if the chapter on bilateral debt says we are going to treat it differently. It is treated differently in international practice through the Paris Club," said Hausmann, a Harvard economics professor and former planning minister, at the IADB's annual meeting in Guayaquil, Ecuador. "We have not come out with any specific guidelines on the treatment of bilateral debt for that reason." Earlier this month, Guaidó's advisers published a plan pledging equal treatment for creditors during an eventual restructuring process of Venezuela's $200 billion in debt if Maduro leaves power. The document carved out some exceptions, including for the billions of dollars in loans from Russia and China, which drew criticism from a group of bondholders known as the Venezuela Creditors Committee, who said the "burden" should be shared equally between public and private creditors. (The New York Times: https://www.nytimes.com/reuters/2019/07/17/world/americas/17reuters-latam-economy-iadb-venezuela.html; Reuters: https://www.reuters.com/article/us-latam-economy-iadb-venezuela/venezuelas-debts-to-china-russia-would-be-restructured-through-paris-club-Guaidó-advisor-idUSKCN1UC2JI

 

Venezuela may switch from SWIFT to Russian payment system to skirt US sanctions

Venezuela is considering using the Russian alternative to the traditional SWIFT international payment system, as the country braces for new US sanctions that could further weaken its financial sector. Venezuela’s central bank has sent a request on the matter to the Central Bank of Russia (CBR) as the regulator’s approval is necessary if Caracas wants to use the payment platform, the report said, citing sources. However, neither of the sides involved, nor the world’s largest payment system, SWIFT, has commented on the report. The Russian alternative payment system already includes nearly 400 users, including the country’s major banks. Last month, the Central Bank of Russia (CBR) said that foreign banks had shown interest in joining the platform and are already testing it. (RT: https://www.rt.com/business/464389-venezuela-russia-swift-alternative/)

 

Venezuela's opposition congress names ad-hoc central bank board

Venezuela’s opposition-controlled National Assembly on Tuesday appointed an ad-hoc board for the country’s central bank with the aim of “protecting its international reserves” from Nicolas Maduro’s regime. The assembly head, Juan Guaidó, named five people to the ad-hoc board. Guaidó did not explain how the ad-hoc board would function, but the opposition has previously sought to prevent Maduro’s government from accessing central bank gold kept at the Bank of England. (Reuters, https://www.reuters.com/article/us-venezuela-politics/venezuelas-opposition-congress-names-ad-hoc-central-bank-board-idUSKCN1UB2HP)

 

Politics and International Affairs

Colombian president says Maduro regime harbors, funds leftist guerrillas

Colombian President Ivan Duque said in an interview with EFE that the National Liberation Army (ELN) guerrilla group is recruiting minors in Venezuela and has the backing of that neighboring country's leftist president, Nicolas Maduro. Duque said Maduro supports not only the ELN but also dissident elements of a former rebel army - the Revolutionary Armed Forces of Colombia (FARC) - that signed a peace deal three years ago with Colombia's previous government and has transformed itself into a leftist political party. “The ELN has a situation and that's that in Venezuela, Nicolas Maduro, the dictator of Venezuela, is protecting them. He's giving them money and sponsoring their efforts to recruit children to work in illegal mining in parts of Venezuela. And on top of that, the ELN's leaders are in Venezuela and protected by Maduro. Alias "Pablito" is there. Another leader, "Antonio Garcia," is there. They also have groups of recruiters there, and many of the criminal attacks they're planning in border areas are planned in Venezuela”, he said; and added: “That dictator in Venezuela is protecting not only the ELN leaders, but also those dissident leaders of the FARC. It's no secret to anyone that that's happening, and that "Ivan Marquez" is in Venezuela and "El Paisa" is in Venezuela and "Romaña" is in Venezuela. And it'd be no surprise if "Santrich" were there. All indications are that he's there under the protection of the Venezuelan dictatorship. That shows that they're looking to sponsor a sort of union of criminal clans to perpetrate violent actions in Colombia.” (EFE: https://www.efe.com/efe/english/portada/colombian-president-venezuela-harbors-funds-leftist-guerrillas/50000260-4024978)

 

EU readies sanctions on Venezuelan security officials

The European Union is preparing new sanctions against Venezuelan security forces involved in human rights violations, the bloc’s foreign policy chief said on Tuesday, following the death in custody of a navy captain amid allegations of torture. Federica Mogherini said the death of Rafael Acosta while in custody for alleged participation in a coup plot was a “stark example” of the deteriorating situation in the country, amid a crackdown by the government of President Nicolas Maduro. “The EU is ready to start work toward applying targeted measures for those members of the security forces involved in torture and other serious violations of human rights,” Mogherini said in a statement. (Reuters, https://www.reuters.com/article/us-venezuela-politics-eu/eu-readies-sanctions-on-venezuelan-security-officials-idUSKCN1UB1L9)

 

MERCOSUR bloc calls for Venezuela elections

South American trade bloc MERCOSUR called for "free, fair and transparent presidential elections, as soon as possible" in Venezuela, at its summit in Argentina on Wednesday. The political and economic crisis in Venezuela was the center of the political debate among the heads of state that, this Wednesday, met in Santa Fe, Argentina in the MERCOSUR semi-annual summit, a block from which this country is currently suspended. The host of the regional meeting, the Argentine president, Mauricio Macri, affirmed that he recognizes the National Assembly as the legitimate State organ of the country, and expressed his solidarity with Venezuela and the humanitarian crisis that he blames the regime of Nicolás Maduro. Also, he called on him to “stop obstructing the democratic transition and stop with the violations of human rights of Venezuelans.” The president of Brazil, Jair Bolsonaro, maintained that the social, political and economic crisis that Venezuela is experiencing was born “from the populism and the irresponsibility of a project of a country that had no limits.” “We do not want what happens unfortunately with Venezuela. We ask God to give us strength and intelligence and that the destiny of Venezuela is the same as we have, that is, democracy, freedom, and prosperity,” said Bolsonaro. For his part, the Paraguayan president, Mario Abdo Benítez, reminded everyone present that “one of the fundamental pillars of Mercosur is the political agreement, which must be translated into mechanisms that guarantee the full validity of the Rule of Law and Democracy.” Three of Mercosur's members -- Brazil, Argentina and Paraguay -- have backed Guaidó, while only Uruguay, under a socialist government, has not done so. (France24: https://www.france24.com/en/20190717-south-american-bloc-calls-venezuela-elections; MERCOSUR Press: https://en.mercopress.com/2019/07/18/what-did-the-mercosur-s-leaders-say-about-venezuela-in-santa-fe)

 

Eight countries call for Inter-American Commission on Human Rights to enter Venezuela

A group of 8 countries submitted a draft resolution condemning human right violations in Venezuela to the Permanent Council of the Organization of American States (OAS), demanding an investigation and requesting access by the Inter-American Commission on Human Rights into the country. The draft resolution seeks to “firmly condemn the grave and systematic violations” of the rights in Venezuela. the project also seeks to “demand immediate, complete and unimpeded access” to Venezuela by the IACHR. (2NYZ: https://2nyz.com/2019/07/17/eight-countries-call-for-inter-american-commission-on-human-rights-to-enter-venezuela/)

 

In a United Nations report, a Socialist details Venezuela’s horrors

Twenty years after Hugo Chávez gained power in Venezuela, promising a workers’ paradise, the United Nations has finally acknowledged that his regime and that of his successor, Nicolás Maduro, is a brutal dictatorship guilty of widespread human-rights abuses and of policies that have led to economic deprivation. The acknowledgment comes in the form of a scathing report, coincidentally released on July 4, that officially confirms the Venezuelan inferno that has been obvious for a long time. That the report was issued by Michelle Bachelet, U.N. high commissioner for human rights, should have special meaning. Bachelet, a former president of Chile (2006–10), is a socialist whose father died in prison after being tortured by the military dictatorship of Augusto Pinochet. She had long resisted efforts to condemn the Venezuelan tyranny, preferring to warn against outside intervention and to call for a new “dialogue” every time negotiations between the regime and the opposition reached a stalemate. (News Yahoo, https://news.yahoo.com/united-nations-report-socialist-details-103013098.html;_ylt=AwrC1DFLly9dC2oAYiHQtDMD;_ylu=X3oDMTBydDI5cXVuBGNvbG8DYmYxBHBvcwM2BHZ0aWQDBHNlYwNzcg--)

 

Opposition calls for mass rally on Tuesday

Venezuela's opposition leader announced a mass street rally set for Tuesday to move forward the “next stage” of their US-backed attempt to gain power in the oil-rich country. "We call on all of Venezuela to mobilize. Together, with the citizen power and the work of the National Assembly, we will advance to a next stage in our struggle. Everyone to Caracas!”  Hampered by opposition from the Venezuelan army and popular challenges to his legitimacy, Guaidó's delegation agreed to take part in Oslo and Barbados initiatives for negotiation talks with the government. Both the EU and MERCOSUR made a fresh call to Venezuela to hold elections. Addressing the migratory, humanitarian and political crisis, the MERCOSUR called Venezuela to hold free, fair and transparent presidential elections "in the shortest time possible", following Tuesday's EU Council statement. On Tuesday, the EU Council reaffirmed that crisis in Venezuela requires an "urgent" political solution, which can only be achieved through "a peaceful, democratic and Venezuelan-owned" process leading to "free and fair presidential elections". (AA: https://www.aa.com.tr/en/americas/venezuela-opposition-calls-for-mass-rally-on-tuesday/1535081)

 

US to redirect Central America aid to Venezuela's Juan Guaidó

The US is planning to divert nearly US$ 42 million from development funding for Guatemala and Honduras to Venezuela's opposition. The move comes just months after the Trump administration announced it would be ending aid to Guatemala, Honduras and El Salvador, the three countries at the center of the current migration wave to the US. In the memo, USAID, the government's international development agency, said the "deviation” of the money was "necessary due to unforeseen events and exceptional circumstances.” USAID stressed in the memo that Venezuela's political crisis was "a significant, exigent event in the US national interest" that required the diverted funds. A portion of the money would finance Guaidó directly. The memo said the funds could cover the "interim government staff salaries or stipends, work-related travel and other costs necessary to ensure full deployment of a transparent financial management system and other activities necessary for a democratic transition." Some US$ 2 million will go to support diplomatic efforts by Guaidó's supporters as they negotiate with the Maduro regime, and US$ 7.5 million will be dispensed to support independent media with the goal of providing Venezuelans with "unbiased and unfiltered sources of news and information," the memo said. Other funds will go address other aspects, including strengthening human rights groups, election monitoring and civil society. (DW: https://www.dw.com/en/us-to-redirect-central-america-aid-to-venezuelas-juan-Guaidó/a-49626538; France24: https://www.france24.com/en/20190717-us-diverts-central-america-aid-boost-venezuelas-Guaidó)

 

… but drags its feet on TPS for Venezuelans

The Trump administration also signaled on Wednesday that it would not grant protection to Venezuelans seeking refuge in the US. In a response to a request by Democratic Senator Dick Durbin, the US Citizens and Immigration Services said it was not planning on adding Venezuela to the list of countries eligible for its Temporary Protected Status (TPS) program, which would allow citizens from that country stay in the US until the situation at home improves. In a letter to U.S. Senators made public on July 16, acting director of U.S. Citizenship and Immigration Services (USCIS) Ken Cuccinelli signaled an unwillingness on the part of the Trump administration to extend Temporary Protected Status (TPS) to Venezuelans. According to U.S. Sens. Dick Durbin and Bob Menendez, the administration will not grant Venezuelans Temporary Protected Status, or TPS. "President Trump cannot do both. He cannot warn Americans that Venezuela is such a dangerous place that they should not travel there, and then tell the Venezuelans in the United States that they are forced to return," said Senators and Menendez said in a written statement. In January, Miami U.S. Reps. Mario Diaz-Balart and Donna Shalala proposed TPS for Venezuelans. That same month, Rep. Darren Soto, an Orlando Democrat, filed the Venezuela TPS Act of 2019. It would allow Venezuelans who came to the United States after early 2013 and who don’t have legal status to temporarily — and legally — stay in this country, shielded from deportation. They would be able to secure work permits. In March, Florida’s Sen. Marco Rubio, along with Sens. Patrick Leahy and Cory Booker — plus Menendez and Durbin — introduced the Venezuela Temporary Protected Status Act of 2019. In addition, Rubio was one of 24 senators, and the only Republican, to sign a letter dated March 7 that was sent to the president on this issue. It said, in part: “In light of the ongoing violence, deteriorating security situation, and humanitarian crisis in Venezuela caused by the illegitimate regime of Nicolás Maduro, we respectfully request that your administration promptly designate Venezuela for Temporary Protected Status (TPS) to ensure that Venezuelan nationals currently present in the United States are not forced to return to Venezuela at this time. Returning non-violent individuals back to Venezuela during this critical time of transition is not in the best long-term interests of the United States or our partners in the region.” In a letter dated July 11, Kenneth Cuccinelli II, acting director of U.S. Citizenship and Immigration Services responded, in part: “The U.S. government continues to monitor the situation in Venezuela. In addition, there may be other relief measures available to Venezuelan nationals affected by current condition in Venezuela.” The Washington Office on Latin America (WOLA), a leading research and advocacy organization that advocates a regional response to broaden access to formal protection status and essential services for Venezuelan migrants and refugees, is alarmed by the Trump administration’s inaction. “Inaction on TPS sends the absolute wrong message: The United States is only concerned about Venezuelans right up until they are forced to flee their country,” said WOLA Assistant Director for Venezuela Geoff Ramsey. (The Miami Herald: https://www.miamiherald.com/opinion/editorials/article232813137.html; WOLA: https://www.wola.org/2019/07/venezuela-letter-tps-regional-response/)

 

Venezuelan teen blinded after 52 rubber pellets to the face

16-year old Rufo Chacon lost both of his eyes just two weeks ago, during a July 2 protest in the Andean city of San Cristobal, Venezuela, which turned bloody when police began firing rubber bullets into the crowd. The doctors who tried to save his eyes said that 52 rubber buckshot pellets hit his face, 16 of them flying directly into his eyes. A police report investigating the accident said state security forces forcefully repressed the crowd without warning. Two other underage protesters also received head injuries the report says. One of them was Chacon's younger brother, Adrian, 14, who received a blow to his skull from a police baton. Both were there with their mother, Adriana Parada, to protest shortages of cooking gas in the region. After the protest, Venezuelan authorities announced that two officers had been charged for "attempted murder, improper use of weapon and cruel treatment" in dealing with the protesters. They are currently awaiting trial. The announcement came hours after the Office of the UN High Commissioner for Human Rights, Michelle Bachelet published a report that denounced "patterns of violations of all human rights" at the hands of the Venezuelan state—a report which the regime of Nicolas Maduro has refuted as biased. Doctors at San Cristobal Central Hospital say they could only remove what was left of Chacon's eyes. He is still at risk of infection, doctors say as pieces of the rubber pellets remain embedded in his face and head, too deep for the surgeon to reach. After being shot, Chacon's plight swiftly became known in the Spanish-speaking world. On the same night of the protest, Puerto Rican music star Don Omar published a picture of the injured and bloodied Rufo on his Instagram account, blaming the soldiers for allegedly firing too low. Offers to pay for treatment have come in from around the world, including Mexico, Spain and the US. One clinic in Colombia has offered to perform an eyelid transplant on Chacon for free. His mother, Adriana, has also opened an Instagram account to crowdsource financial help for the family. But due to currency controls on the country, Venezuela's economy is effectively sealed off from the outside world, and they can only receive donations from inside the impoverished country. (ABC News: https://www.cnn.com/2019/07/17/americas/venezuela-rufo-chacon-blind-teenager-protest-intl/index.html)

 

Regime frees musician jailed after blasting Maduro online

Karen Palacios who plays the clarinet and was cut from the National Philharmonic for criticizing the government, and who was detained for 6 weeks, was released today. Karen Palacios' Yamaha clarinet still rests where she left it atop sheet music of a Mozart concerto that she practiced diligently the night before two strangers dressed in black lured her away in a luxury SUV. The 25-year-old musician's captors duped her into believing she was needed for an interview with a victims' unit at the presidential palace. Instead, they drove her to Venezuela's most-notorious military prison, locking her up alongside the socialist regime's top opponents for violating Venezuela's highly subjective hate law. Her crime: posting a message on social media venting frustration at President Nicolás Maduro's government over having been cut from the state-funded National Philharmonic, where she had recently debuted as first clarinetist. On Tuesday, the family's nightmare ended. After 45 days in jail alongside some of Venezuela's most-hardened female criminals — and a full month after a judge ordered her immediate release — Palacios walked through a giant metal gate at a penitentiary outside Caracas. She remains on probation and is banned from speaking to the media. But the scars from her confinement will take time to heal. Meanwhile, her plight has drawn attention to what the United Nations in a report this month signaled as the government's growing use of arbitrary detentions to intimidate opponents — real or imagined — and stifle free expression.

Meanwhile, her imprisonment has reopened debate on Venezuela's hate law, which was passed by the rubber-stamping, pro-Maduro constitutional assembly in 2017 and carries prison sentences of between 10 and 20 years for anyone found guilty of publicly instigating violence against people based on their race, ethnicity or political views. Free speech advocates say the law is selectively enforced and consider it a tool of repression and censorship. Last year, 24 people were detained for expressing criticism of the government online, according to local NGO Espacio Publico. (ABC News: https://abcnews.go.com/International/wireStory/venezuela-frees-musician-jailed-blasting-maduro-online-64383127)

 

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.