International
Trade
Cargo that has arrived at Puerto Cabello:
- Over
1,200 tons of paperboard from Tetra Pak for its local subsidiary
- Over
1,000 tons of oats from Inmobiliaria Bretana Limitada and Avenatop S.A.
for Provencesa S.A.
- 1,000
tons of dried fish meal from Bananitaexport S.A. for Alimentación
Balanceada C.A. (Alibalca).
- 576
tons of monocalcium phosphate from Top Shipping Systems for its local subsidiary
- Over
300 tons of auto parts from Ford Motor for its local subsidiary
- Over
72 tons of fresh pears from Exportadora Atlas for the Foreign Trade
Corporation (CORPOVEX)
Port charges will use Tax Units, not dollars
The Aquatic and Air
Transport Ministry has published new rates on port services which will be
charged in Tax Units, not US dollars as previously announced. More in Spanish: (Ultimas Noticias: http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/tarifas-portuarias-se-calcularan-en-unidades-tribu.aspx#ixzz3UG55KPtK; El Nacional; http://www.el-nacional.com/)
Oil &
Energy
US names Andorra Bank for
US$ 2 billion money laundering for Venezuela's PDVSA and criminal organizations
The U.S. Department of the Treasury's Financial
Crimes Enforcement Network (FinCEN) today named Banca Privada d'Andorra (BPA)
as a foreign financial institution of primary money laundering concern, based
on information indicating that, for several years, high–level managers at BPA
have knowingly facilitated transactions on behalf of third–party money
launderers acting on behalf of transnational criminal organizations. This
includes the activity of a second high–level manager at BPA in Andorra who
accepted exorbitant commissions to process transactions related to Venezuelan
third–party money launderers. This activity involved the development of shell
companies and complex financial products to siphon off funds from Venezuela's
public oil company Petróleos de Venezuela (PDVSA). BPA processed approximately US$
2 billion in transactions related to this money laundering scheme. Spain and
Panama promptly intervened BPA affiliates in both nations. (FinCEN: http://www.fincen.gov/news_room/nr/html/20150310.html; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2377827&CategoryId=10717;
El Universal, http://www.eluniversal.com/economia/150312/complaint-related-to-banca-privada-dandorra-involves-pdvsa;
and more in Spanish: El Nacional; http://www.el-nacional.com/)
John Kerry says
Venezuela turmoil threatens humanitarian crisis if PETROCARIBE fails
The US Secretary of State has warned Venezuela
that if the political turmoil in the country leads to the suspension of the
subsidized PETROCARIBE oil program "we
could end up with a serious humanitarian crisis in our region". Venezuela
is having to rethink the PETROCARIBE subsidized oil arrangement in order to
finance its shrinking imports, rebuild foreign reserves and avoid defaulting on
its debt. Last January, the US government held a Summit on Energy Security in
the Caribbean, in which it urged regional powers to diversify their energy
sources, rely more on private investment and reduce their dependence on
PETROCARIBE. (International Business Times: http://www.ibtimes.co.uk/john-kerry-venezuela-turmoil-threatens-humanitarian-crisis-if-petrocaribe-oil-program-fails-1491681)
Venezuela's loss is
Africa's gain in Latam crude game
Shrinking crude exports from Venezuela to its
neighbors has allowed African oil producers to gain a foothold among Latin
American buyers, and sales to one of the world's few regions with strong demand
will keep growing. Only months ago, African producers were scrambling to find
new clients in the Western Hemisphere, having largely been pushed out of the
U.S. market by the onshore shale oil revolution. African exports are also
growing as Mexico and Brazil lack spare capacity to increase sales to
neighbors. U.S. companies, which dominate refined products trade in the
Americas, cannot export crude because of a decades-old ban imposed by
Washington. (Reuters, http://www.reuters.com/article/2015/03/12/us-oil-latam-africa-analysis-idUSKBN0M81RW20150312;
El Universal, http://www.eluniversal.com/economia/150312/africa-displaces-venezuela-as-oil-exporter)
Commodities
VENALUM forced cut to
metal quality
Venezuela's state-controlled smelter VENALUM,
the largest primary aluminum smelter in Latin America, will no longer be able
to meet purity standards due to its deteriorating financial situation,
according to a company document seen by Reuters. VENALUM has installed capacity
to produce 430,000 tons of aluminum per year but output in 2014 fell to 100,000
tons, its workers estimate, after a run of labor strife and as under-investment
leaves the refinery technologically outdated. Japanese companies Showa Denko,
Kobe Steel Ltd , Marubeni Corp, Sumitomo Chemical Co Ltd , Mitsubishi Materials
and Mitsubishi Aluminum own a 20% share of the state-run company and have been
trying to shed their stake since 2009 due to a dispute with the government over
selling prices. It costs around US$ 4,000 to produce a ton of Venezuelan aluminum,
double the international market rate. VENALUM once exported 75% of its
production to the United States, Europe and Japan. But with output in free-fall
since 2009, it has slashed shipments and the country is now a net aluminum
importer. (Reuters: http://af.reuters.com/article/idAFL1N0WE2RM20150312?pageNumber=2&virtualBrandChannel=0)
Economy
& Finance
Venezuela is facing US$ 3.129 billion debt
repayment in March, April and May
The government and PDVSA must make important
bond payments for up to US$ 3.129 billion during March, April and May. On March
16, Global 2015 bond comes due for US$ 1.450 billion, plus interests on Global
2018 and PDVSA's 2027 in April. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/banca/venezuela-enfrenta-pagos-de-deuda-en-marzo--abril.aspx#ixzz3UG7P1YPQ)
Venezuela’s US$ 5.9 billion
cash burn raises bond concerns
Venezuela has already blown through almost of
all the US$ 5.9 billion in new financing it managed to scrounge up this year.
And while it will probably use US$ 1.3 billion of the money to pay bonds coming
due on Monday, the cash-strapped country’s spending underscores why derivatives
traders say there’s a better than 50 percent chance it will default within a
year. After using up the money it squeezed out of its U.S. oil-refining unit
and spending the payment it received from Dominican Republic for crude sales
last month, Venezuela’s foreign reserves now stand at US$ 22.1 billion,
unchanged from the beginning of 2015. That’s far short of the US$33 billion in
financing that Barclays Plc estimates the country needs this year with oil
prices around US$ 50 a barrel. (Bloomberg, http://www.bloomberg.com/news/articles/2015-03-11/venezuela-s-5-9-billion-cash-burn-raises-bond-concerns)
Owens-Illinois wins US$
455 million award for Venezuela takeover
Owens-Illinois, Inc., a maker of glass
containers, was awarded more than US$ 455 million for the nationalization of
two of its plants in Venezuela. A tribunal from the International Center for
Settlement of Investment Disputes awarded Owens more than US$ 372 million plus
interest at an annual rate of LIBOR plus 4%. Interest since the Oct. 26, 2010
expropriation exceeds US$ 84 million. “As the tribunal found, Venezuela
expropriated very valuable assets, which were the result of more than half a
century of hard work and commitment by O-I employees and for which the country
now has to compensate O-I,” Al Stroucken, O-I’s chairman and chief
executive officer, said in the statement. Venezuela says it will challenge the
award. (Bloomberg, http://www.bloomberg.com/news/articles/2015-03-12/o-i-awarded-455-million-by-icsid-for-venezuela-expropriation;
Reuters, http://www.reuters.com/article/2015/03/12/owensillinois-venezuela-idUSL4N0WE4ON20150312;
El Universal, http://www.eluniversal.com/economia/150312/complaint-related-to-banca-privada-dandorra-involves-pdvsa;
and more in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/venezuela-impugnara-sentencia-de-ciadi-a-favor-de-.aspx#ixzz3UG3boISA; El Nacional; http://www.el-nacional.com/)
Politics and
International Affairs
Maduro seeks decree
powers to face U.S. 'imperialism',
blames López for US decision
President Nicolas Maduro is seeking special
decree powers for six months from Venezuela's parliament in response to new
U.S. sanctions, drawing opposition protests of a power-grab. If as expected the
government-controlled National Assembly approves his request for an
"Enabling Law", it would be the second time he has gained these
expanded powers since winning election in 2013. Maduro didn’t specify the
powers that the law would grant him or say exactly how he would apply them. He
also announced that the military would stage exercises around Venezuela on
Saturday to ensure that the “Yankee boot”
can never touch the country. In a speech to followers, Maduro pointed to
Leopoldo López as one of those responsible for US sanctions: "For their fault Venezuela has been called a
threat to the United States..They declare a nation a threat to save one of
their agents who is a repeated murderer". Opponents said Maduro will
surely use any additional powers to quash dissent. Several opposition leaders
said they worried the expanded powers would allow Maduro to override the
results of legislative elections expected late this year. Opposition leaders
slammed Maduro, saying he was using the worst flare-up with Washington of his
nearly two-year rule to justify autocratic governance, sidetrack parliament and
distract attention from Venezuela's grave economic crisis. "Nicolas, are you requesting the Enabling Law
to make soap, nappies and medicines appear, to lower inflation?"
satirized opposition leader Henrique Capriles. "It's another smokescreen." Maduro may be calculating that nationalist
sentiment will rally strained support among the traditional "Chavista" power-base of Venezuela's
poor, and unite ruling Socialist Party factions ahead of a parliamentary
election later this year. The National Assembly requires two thirds votes to
approve the Enabling Law once a formal request is received. In the past, both
Maduro and Chavez have received speedy approval of the Enabling Law. Some analysts
say the U.S. sanctions could be a gift to Maduro in the short term, providing
him with an excuse to dwell on his conflict with Washington. (The Washington
Post: http://www.washingtonpost.com/world/the_americas/venezuela-president-seeks-increased-power-after-us-sanctions/;
Reuters: http://www.reuters.com/article/2015/03/10/us-venezuela-usa-idUSKBN0M61JK20150310;
Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2378139&CategoryId=10717;
Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43081&idc=1;
and more in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/maduro-responsabiliza-a-leopoldo-lopez-por-sancion.aspx#ixzz3UGB9vWq4
US Southern Command chief
says Venezuela is close to economic "collapse
and implosion"
General John Kelly, chief of the US Southern
Command, has told the US Senate that Venezuela is near to economic "collapse and implosion". He said
President Nicolás Maduro "doesn't
need any help" in bringing about his own government's overthrow, and
added: "I don't know anyone who
wants to take charge of that disaster, but I am certainly not involved in
planning any coup". Kelly went on to say: "If (Venezuela) cuts back on social programs and scarcity continues,
something that seems inevitable, that could lead to higher tension and protest,
which could lead President Maduro to take more repressive action against
demonstrators and the opposition." He added that is Venezuela has to
cut its support of PETROCARIBE that could "unleash a regional collapse", and added that the US is
concerned over Russian intentions of placing ships or bombers in countries such
as Cuba, Venezuela and Nicaragua, but sees the as "more a bother than a threat." More in Spanish: (El Universal: http://www.eluniversal.com/nacional-y-politica/150312/comando-sur-de-eeuu-dice-que-venezuela-se-acerca-al-colapso-economico;
El Nacional, http://www.el-nacional.com/mundo/Pentagono-rechazo-acusacion-Maduro-golpe_0_590341122.html)
Allies throw weight
behind Venezuela in row with US
Cuba rallied behind Venezuela, offering its
closest ally "unconditional support"
after US President Barack Obama authorized new sanctions against officials of
the Maduro regime. Ecuador's President Rafael Correa described them as a “a bad joke.” Bolivian President Evo Morales suggested South
American leaders hold an emergency meeting to address the U.S. move. A
statement from Argentina’s Foreign Affairs Ministry late on Wednesday condemned
the language in Obama’s Executive Order stepping up sanctions on Venezuela. Argentina
said the language caused “consternation”
and “stupor.” And the 12 foreign
affairs ministers of the Union of South American Nations (UNASUR) will meet on
Saturday in Ecuador to address the set of measures imposed by the United States
on Venezuelan officials. The ministers and Executive Secretary Samper will
present a report on the visit the foreign affairs ministers of Brazil, Colombia
and Ecuador paid to Caracas last 6 March and the Venezuela's situation. In the
meantime, State Department spokeswoman Jen Psaki has denied that the U.S. was
working to destabilize Maduro’s government and noted that the U.S. is
Venezuela’s largest trading partner. Asked about Maduro’s request for
additional powers, she said he “needs to
spend more time listening to the views of the Venezuelan people.” U.S.
officials have characterized the wording of the Executive Order, specifically
labeling the “situation in Venezuela”
as a “threat to the national security”
of the U.S., as a formality when imposing sanctions. (News Yahoo: http://news.yahoo.com/cuba-gives-unconditional-support-venezuela-against-us-000646002.html;
El Universal, http://www.eluniversal.com/nacional-y-politica/150312/ex-president-mujica-says-us-calling-venezuela-a-threat-is-crazy;
http://www.eluniversal.com/nacional-y-politica/150312/unasur-ministers-to-discuss-us-sanctions-against-venezuelan-officials)
UN says Venezuela has violated international
law by “not taking measures to prevent mistreatment to protestors and detained Venezuelans", especially Voluntad
Popular’s national coordinator Leopoldo López, said part of the report UN
Special Rapporteur on Torture Juan Méndez submitted to the UN Human Rights
Council in Geneva on Wednesday. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43084&idc=1)
European Parliament
asks Maduro to free Ledezma and other peaceful opponents
The joint resolution - which received 384 votes
in favor, 75 against and 45 abstentions - was backed by popular parties, social
democrats, conservatives, reformists and liberals, and calls for "putting an end to political persecution and
repression of democratic opposition" and urges Venezuela to cease
"censure of media". Leftist
legislators voted against. The resolution also asks the European Union to
closely follow events in Venezuela. (Infolatam, http://www.infolatam.com/2015/03/13/eurocamara-pide-a-maduro-que-libere-a-ledezma-y-resto-de-opositores-pacificos/)
Uruguay called in Venezuelan Ambassador there because of Nicolás Maduro’s
“unfriendly” statements in which he criticized Vice President Raúl Sendic,
without mentioning him. Sendic had said he had no evidence to back Maduro’s
accusations of US meddling in Venezuela. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43076&idc=19
US legislators are demanding
Ambassador Chaderton's visa should be revoked over comments
A group of US Congress members, headed by Rep.
Ileana Ros-Lehtinen, Chair of the Foreign Relations Committee, have asked US
Secretary of State John Kerry to revoke the visa of Venezuela's ambassador to
the Organization of American States (OAS) Roy Chaderton, following his recent
violent comments about his country's opposition. In a Venezuelan TV interview
Chaderton compared the "sound"
of a bullet going through the "empty"
head of an opponent, with that going through the head of a "chavista". He later said his
comments were taken out of context: "There
is a scandal, with some people even asking (OAS Secretary-General José Miguel)
Insulza to dismiss me, something he cannot do," said Chaderton. He
explained that his comment about dissenters was marked by "black humor," which he termed
"a mistake." (El Universal,
http://www.eluniversal.com/nacional-y-politica/150312/roy-chaderton-apologizes-for-remarks-against-the-opposition;
and more in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/mundo/introducen-documento-para-pedir-a-kerry-que-revoqu.aspx#ixzz3UGAr2czo; El Nacional; http://www.el-nacional.com/)
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.
