June 09, 2015

Logistics & Transport

 

Airlines still have US$ 3.7 billion in ticket sales cash trapped in Venezuela -IATA

Airlines have US$ 3.7 billion of cash from ticket sales trapped in Venezuela because of currency controls here, says the International Air Transport Association. "It's the airlines' money," IATA Director General Tony Tyler told journalists. "We recognize the country is in a difficult situation and doesn't have a lot of money to spare, but we do want the government to sit down with the industry," and address the long-running issue, Tyler said. (Reuters, http://www.reuters.com/article/2015/06/08/airlines-iata-venezuela-idUSL5N0YU4BW20150608; El Universal, http://www.eluniversal.com/economia/150608/iata-urges-venezuela-to-address-debt-to-airlines)

 

Guyana’s Civil Aeronautics Authority cancelled CONVIASA’s permit to operate at its airports due to lack of payment of the Venezuelan State air carrier of a fee used as a guarantee to compensate passengers in case air carriers stop flying all of a sudden. CONVIASA was not allowed to land in Guyana’s international airport since Saturday. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44196&idc=3; El Universal, http://www.eluniversal.com/nacional-y-politica/150608/guyana-suspends-entry-of-venezuelan-conviasa-planes)

 

20% of transportation units in Caracas are paralyzed due to high cost of spare parts

Drivers in Metropolitan Caracas are highly concerned about the scarcity and cost of spare parts, which has around 20% of vehicles out of commission; and members of the 71 organizations that operate public transportation in the suburban Tuy Valley area and other parts of the nation went on a five hour protest strike to protest the situation. Tires are one of the items that have had sharp cost increases. More in Spanish: (El Universal, http://www.eluniversal.com/caracas/150609/por-alto-costo-de-repuestos-se-paraliza-20-de-unidades)

 

 

Oil & Energy

 

Oil prices lower due to drop in Chinese crude oil imports

The average West Texas oil price dropped 1.67% to US$ 58.14 per barrel amid reports of import reductions by China, which have dropped 11% this year to date. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/petroleo-cae-por-descenso-de-importaciones-de-crud.aspx#ixzz3cYcPyTaU; El Mundo, http://www.elmundo.com.ve/noticias/petroleo/industria/petroleo-cae-por-descenso-de-importaciones-de-crud.aspx)

 

The OPEC decided to keep its 30 million barrels per day production quota unchanged, as anticipated by the market. Minutes before the meeting began in Vienna, Saudi Minister Ali al Naimi had told the press demand had been increasing lately and supplies had been dropping. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44195&idc=4)

 

 

Commodities

 

Minister claims that the government has distributed 128,000 tons of food in 2015 to date

General Carlos Osorio, Vice President for Nutrition Security and Sovereignty, says that to date this year over 128,000 tons of food have been distributed to over 5 million people through state food distribution centers such as MERCAL, PDVAL and Abastos Bicentenarios. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/agro/osorio--hemos-distribuido-mas-de-128-mil-toneladas.aspx#ixzz3cSqv38Tl; Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/m%C3%A1s-mill%C3%B3n-600-mil-toneladas-alimentos-se-han-distribuido-este-a%C3%B1o)

 

...and announces state quotas for cleaning and personal care products

General Osorio also announced that the regime will authorize distribution of personal care and cleaning products on a state by state weekly basis. He said "we now control distribution of 6 products, such as diapers, soap, and detergents, among others." More in Spanish:  (El Mundo, http://www.elmundo.com.ve/noticias/economia/mercados/cada-estado-del-pais-tendra-una-cuota-de-productos.aspx#ixzz3cYeCfuIT)

 

 

Economy & Finance

 

Barron's: Venezuela Reserves hit new low, gold not helping

Venezuela’s central bank has reported foreign reserves fell to a new 12-year low. The data show reserves fell to US $16.897 billion for the week ended June 3, from a prior-week figure of US$ 17.526 billion. Venezuela held approximately 11.6 million ounces of gold at the end of 2014. It was valued at US$ 14.6 billion, calculated at an average price near US$ 1,258 per ounce. But gold prices are down nearly 10% from their settle high of near US$ 1,301 in late January. Still, a Venezuelan debt default may not be in the offing. Venezuela borrowed roughly US$ 385 million from its the International Monetary Fund in April – albeit the first such loan in more than a decade. LATINVEST Editor Russ Dallen reiterates his sentiment that “Venezuela is running on fumes,” writing: "Venezuela’s situation continues to unravel at increasing speed as the bolivar tumbled 30% over just the last week, while the country’s international reserves simultaneously hit a new 12 year low …Venezuela’s reserves have now fallen 21% since the beginning of the year, but more importantly US$ 6.7 billion from their high just 2 months ago – a high that not only included US$ 2.8 billion from mortgaging CITGO, US$ 1.9 billion from the selling of US$ 4 billion of oil receivables from the Dominican Republic, and the transfer of previously unreported China FONDEN funds into the reserves." (Barrons, http://blogs.barrons.com/emergingmarketsdaily/2015/06/05/venezuela-reserves-hit-new-low-gold-not-helping/)

 

The government’s debt with the private sector is almost equivalent to the totality of the international reserves at this moment. The government owes the automotive, pharmaceutical and aeronautics sectors, among others, some US$ 14 billion for non-liquidated dollars. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44198&idc=2)

 

Chinese cooperation fund reportedly grants new loans

Surface Transport Minister and Vice President for Territorial Socialism Haiman El Troudi who is in China for an international forum, has reported that, loan lines for US$ 30 billion were activated, under special conditions, for infrastructure projects. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44192&idc=2)

 

 

Politics and International Affairs

 

Saab says legislative elections are slated for the end of the year

Public Defender Tarek William Saab has announced that legislative elections will be held toward the end of the year, adding that Tibisay Lucena, President of the National Elections Board has said so publicly "and I can confirm it because we have discussed it on the telephone: The elections will be at the end of November or the first week of December. (El Universal, http://www.eluniversal.com/nacional-y-politica/150608/saab-a-final-de-ano-se-realizaran-las-parlamentarias)

 

Opposition says it will sign an elections pact, with conditions

Jesús Torrealba, Secretary General of the opposition Democratic Unity Conference (MUD) says they have agreed to sign an agreement to abide by results, as proposed by President Nicolás Maduro - but will insist on having international observers during the process. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/mud-condiciona-acuerdo-electoral-propuesto-por-mad.aspx#ixzz3cYdJxLC2)

 

UNASUR Secretary General expects UN and EU to do "their job" in elections here

UNASUR Secretary General Ernesto Samper has said he expects the Organization of American States (OAS) and the European Union (EU) to "do their job" in the upcoming legislative elections in Venezuela. He added that UNASUR will be present at the polling, at the invitation of National Elections Board Chairman Tibisay Lucena. (Globovision, http://globovision.com/samper-espera-que-oea-y-ue-cumple-su-tarea-en-elecciones-venezolanas/)

 

Spanish ex-premier Gonzalez in Venezuela to help defend jailed opposition leaders

Former Spanish prime minister Felipe González is in Venezuela to help lawyers defending imprisoned opposition leader Leopoldo Lopez. He was criticized by President Nicolas Maduro after announcing he would advise Lopez and showered with insults by his supporters. The Foreign Ministry has said that Gonzalez isn't welcome here. He has already visited Caracas mayor Antonio Ledezma who is currently under house arrest on charges of conspiring against Venezuelan President Nicolas Maduro’s government. “Finally, with authorization, we made the meeting possible, a very pleasant, very cordial one, and we spoke about the concerns we all have (...) we think Venezuela lacks dialogue to solve problems,” said Felipe Gonzalez in brief remarks. “One has to talk, rebuild, reconcile and reconstruct institutions,” he added. After the head of Venezuela's Supreme Court said he was not allowed to take part in court proceedings, González said he will simply advise the defense, adding "I did not come here to fight with the government; I am here to try to visit the political prisoners and am awaiting permission to do so." (Fox News, http://www.foxnews.com/world/2015/06/07/spanish-ex-premier-gonzalez-arrives-in-venezuela-to-help-defend-jailed/; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2389867&CategoryId=10717; El Universal, http://www.eluniversal.com/nacional-y-politica/150608/felipe-gonzalez-waits-for-authorization-to-visit-political-prisoners; Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44199&idc=1; and more in Spanish: El Universal, http://www.eluniversal.com/nacional-y-politica/150609/gonzalez-vine-a-asesorar-y-a-ver-a-los-presos-politicos; El Nacional; http://www.el-nacional.com/; and Infolatam, http://www.infolatam.com/2015/06/08/gonzalez-acata-decision-de-supremo-venezolano-sobre-defensa-de-opositores/)

 

Guyanese foreign minister to summon Venezuelan ambassador

Guyanese Foreign Minister Carl Greenidge said he was preparing to summon Venezuela's ambassador to ask her why Caracas has allegedly further extended its maritime boundary to include an offshore area precisely where US oil giant ExxonMobil, granted a concession by Guyana, recently found a huge oil deposit. "We shall be calling in the country's (Venezuela) ambassador to explain its (the decree on maritime boundaries) meaning, and to voice our concern about this escalation of a long-running attempt to achieve by questionable means, what Venezuela has so far failed to achieve by internationally accepted legal and diplomatic approaches," Greenidge said, without saying the date when the ambassador would be summoned. (El Universal, http://www.eluniversal.com/nacional-y-politica/150608/guyanese-foreign-minister-to-summon-venezuelan-ambassador; Reuters, http://www.reuters.com/article/2015/06/08/guyana-venezuela-idUSL1N0YU1L620150608; El Universal, http://www.eluniversal.com/nacional-y-politica/150608/guyana-terms-illegal-venezuelas-decree-on-maritime-boundaries)

 

Venezuelan Bishops’ Conference (CEV, in Spanish) rejected the government’s refusal to allow them to visit political prisoners in jail. Its head, Monsignor Diego Padrón emphasized they would insist on the need for a true dialogue and for the immediate release of Venezuela’s political prisoners, as well as respect for their human rights. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44200&idc=1)

 

Venezuelan Foreign Affairs Minister Delcy Rodríguez was also appointed PDVSA’s director and Vice President for International Affairs (June 3 Gaceta Oficial). (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44194&idc=4)

 

 

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.

 

June 05, 2015

International Trade

 

Cargo that has arrived at Puerto Cabello:

• 2,444 tons of transformers, hardware and high capacity plants for China Machinery Engineer, (CHME), PDVSA and CORPOELEC
• Over 2,000 plant parts for state agency CORPOELEC
• Over 417 tons of refined edible oil from Oil Dri Corporation for Alimentos Polar
• Over 200 tons of xilenium for state agency PEQUIVEN
• Over 171 tons of paper filters for PDVSA Petróleo
• Over 14 tons of parts from Ford Motors for their Venezuelan affiliate.

More in Spanish: (El Carabobeño, http://www.el-carabobeno.com/portada/articulo/106064/-al-puerto-arribaron-ms-de-dos-mil-toneladas-de--partes-elctricas-)

 

US-Venezuela balance of trade is down 37.13% during the first 4 months this year, according to the US Census Bureau - from US$ 13.49 billion in 2014 to US$ 8.48 billion now. Venezuelan exports to the US contracted 46.49%, and 93.84% of this were oil exports. More in Spanish:  (El Nacional; http://www.el-nacional.com/)

 

 

Oil & Energy

 

Iraq, Venezuela see US$75-80 as "fair" price for oil

The top oil officials of Iraq, Venezuela and Angola have said that US$ 75 to US$ 80 a barrel was now a "fair" price for oil, reflecting an emerging consensus on a possible new equilibrium for volatile markets. "The equitable price will be between US$ 75 and US$ 80," Iraqi oil minister Adel Abdel Mahdi told an OPEC seminar in Vienna. "We share the same opinion of the minister of Iraq regarding this issue," Venezuela's oil minister Asdrubal Chavez said. Oil ministers from Iran and Ecuador declined to comment. Angolan Oil Minister Jose Botelho de Vasconcelos said US$ 80 per barrel is a good price for producers. "For consumers you must ask them," he said. (Reuters, http://www.reuters.com/article/2015/06/03/opec-meeting-price-idUSL5N0YP3AJ20150603)

 

Venezuela finds new front in attack on U.S. fracking: water

Venezuela sought to open a new front in its months-long verbal assault on the U.S. shale oil industry on Wednesday, suggesting it posed a grave threat to water supplies. In the latest criticism of the hydraulic fracturing technology that has yielded a gusher of crude supplies in Venezuela's biggest oil market, oil minister Asdrubal Chavez cited the "huge environmental impact" from shale. "This does not seem to raise any concerns among the governments promoting it or the companies involved," he told an OPEC seminar in Vienna attended by chief executives of some of the world's biggest oil companies, including EXXON and BP, both of which operate in U.S. shale. (Reuters, http://www.reuters.com/article/2015/06/03/opec-meeting-venezuela-fracking-idUSL1N0YP11A20150603)

 

 

Commodities

 

Hospital patients are being asked to import their own supplies

The severe scarcity in medical and surgical supplies has led some clinics to ask patients undergoing treatments such as procedures or elective surgery to import necessary supplies because the health centers do not have them, according to medical sources. This has happened in cases of haemodynamics,  hemodiálisis, laparoscopies, and inter-ocular lenses. More in Spanish: (El Nacional; http://www.el-nacional.com/)

 

The chicken production deficit in the country is 50,000 tons per month, according to Venezuela’s Poultry Federation Chief Simón Leal. He explains the industry barely places 70,000 tons out of the 120,000 needed, and added it requires US$ 2.5 billion a year or US$ 208 million a month to recover production. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44168&idc=3)

 

 

Economy & Finance

 

LATINVEST estimates Venezuela's international reserves are crashing, could run out in 8 months

Last week, Venezuela's foreign reserves started the week at US$ 17.526 billion.  Yesterday after the close, Venezuela's Central Bank reported that the reserves have now fallen to a new 12 year low of US$ 16.897 billion as of Wednesday, June 3. Venezuela has now burned through US$ 7.357 billion in reserves in 3 months since February 27.  That is an unsustainable average drawdown of over half a billion a week.  If that burn rate was to continue, it would mean that the country would run out of reserves in 8 months – and this is not factoring in the huge maturity, amortization and interest bulge of over US$ 5 billion that Venezuela will hit in October and November - at the same time that the government will theoretically be wanting to spend extravagantly to fund its electioneering: Sources in the government seem to be pointing to December 6, the anniversary of the election that brought Chavez to power in 1998.  Meanwhile, the bolivar's depreciation continues to gather speed, and the currency is now at 438 bolivars to the dollar in the black market, with the dollar doubling against the bolivar in just 3 months. At the same time, the government continues to print bolivars, with M2 money supply up over 70% in just the last 12 months.  (Latinvest: https://www.scribd.com/doc/266632291/).

 

FOREX reserves have been dropping an average US$ 49 million daily this year, according to a report by ODH Análisis Venezuela. Añade que ha habido mayores disminuciones específicas en los momentos de pago de deuda. Over the past 3 days reserves rose by US$ 306 million due to an increase in the price of gold - which is the largest part of reserves held by the Central Bank of Venezuela. More in Spanish: (El Nacional; http://www.el-nacional.com/; and El Universal; http://www.eluniversal.com/economia/150605/que-esta-pasando)

 

Daily FOREX allocations have been cut 71% to US$ 40.6 million in the first four months of this year, according to ECOANALÍTICA, down from US$ 140 million during the same period in 2014. There have been no bids since October 2014. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44169&idc=2)

 

FOREX rate change under study

An unofficial source reports the Government is analyzing a correction in the FOREX rate and devaluating the VEB 6.3/US$ 1 to VEB 25/US$ 1, for all imports going through the Foreign Trade Center. The new devaluation would also imply a subsidy program for food and medicines. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Gobierno-estudia-modificar-tasa_0_640136243.html)

 

CONINDUSTRIA reports the number of active companies is down 60% nationwide since 1998

The National Council of Industries (CONINDUSTRIA) reports that the number of active companies is 60% less than in 1998, and says the only way to reactivate the economy over the next 10 years is to implement effective public policies to stimulate innovation, investment and entrepreneurship. "There were around 15,000 industrial companies in 1998 and we are now down to little more than 5,000. We have continued shrinking this year." More in Spanish: (GLOBOVISION, http://globovision.com/segun-conindustria-empresas-activas-en-el-pais-se-han-reducido-60/)

 

 

Politics and International Affairs

 

ECOSOC, ILO slam Venezuela's "economic warfare" excuse for harassing businessmen

The argument that business and the opposition are plotting to leave the country without food, medicines, and other products in order to discredit the Venezuelan government seems increasingly implausible to the world. The United Nations Committee on Economic, Social and Cultural Rights (ECOSOC) on Wednesday questioned the Venezuelan government for attributing most of domestic troubles to "economic warfare." The country was scrutinized in a regular exercise of the UN Member States that have ratified the Convention on Economic, Social and Cultural Rights. Colombian expert Rodrigo Uprimmy asked Planning Minister Ricardo Menéndez: "When there is progress it's due to the revolution and where there are problems it is due to economic warfare? Clarify what you mean by "economic warfare".  Menendez asked the UN to "be respectful...not make value judgments...and not trivialize economic warfare, which is to manipulate international markets to lower the price of crude oil, destabilize the national currency, and raise the country risk for Venezuela." China's Shiqiu Chen asked for details: "Your policies seem to be hurting everyday people, who is this economic warfare against". Menendez remarked that despite the situation the country has not lowered social investment. On Thursday, the International Labor Organization (ILO) rejected the use of this argument by Venezuelan authorities to justify its constant harassment of businessmen and some union leaders. "That argument is untrue to the international vision," said ILO expert Rafael Echeverría during Venezuela's evaluation of trade union freedoms. The head of the Venezuelan delegation, Labor Relations Vice-Minister Elio Colmenares argued that the Venezuelan Federation of Chambers of Commerce and Industry (Fedecámaras) kept on planning, funding, and heading the economic war against the government. (El Universal, http://www.eluniversal.com/nacional-y-politica/150604/ilo-economic-war-is-no-excuse-for-harassment-of-businesspersons; http://www.eluniversal.com/nacional-y-politica/150603/un-questions-that-venezuelan-govt-adduces-economic-war; and more in Spanish: El Universal, http://www.eluniversal.com/nacional-y-politica/150604/venezuela-pidio-a-la-onu-no-banalizar-la-guerra-economica; El Nacional; http://www.el-nacional.com/)

 

UN, US seek freedom for López and Ceballos, as 24 people remain on hunger strike over political prisoners. The United Nations has expressed its concern over Venezuela’s political prisoners, and asked to guarantee medical attention to those now staging a hunger strike. The US State Department expressed "deep concern", urged the Venezuelan regime to guarantee their well being, and stated "we join the international community in seeking their immediate freedom." Former San Cristóbal Mayor Daniel Ceballos has lost 10 kilos since starting his hunger strike 14 days ago. López joined him 12 days ago. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44171&idc=1; and more in Spanish: El Nacional; http://www.el-nacional.com/)

 

Monsignor Lückert reports "the Pope is concerned over Venezuela's situation"

Pope Francis is concerned over the situation in Venezuela, insecurity, disrespect of human rights, and political prisoners, according to Monsignor Roberto Lückert León, who held a meeting with the Pope last Monday. "There are lot of things that both he and people outside our country, cannot understand, such as an immensely rich country like Venezuela is an immensely poor country", Lückert said. As chairman of the Episcopal Commission of Media in Venezuela explained that for the Pope to come here, there must be a move by the Bishops' Conference and the government. (El Universal, http://www.eluniversal.com/nacional-y-politica/150603/monsignor-luckert-the-pope-is-worried-for-venezuelas-situation)

 

United opposition coalition sets protest agenda

The Executive Secretary of the United Democratic Conference (MUD), Jesús Torrealba, has announced an agenda agreed to by the coalition to settle disagreements after the unilateral call by the Voluntad Popular party for a demonstration last Saturday. "The best decision is that made by all of us together, because is the strongest one, the one capable of going far," Torrealba. The heads of the opposition parties gathered in support of the agenda provided by the wives of  Leopoldo López, Daniel Ceballos and Antonio Ledezma. (El Universal, http://www.eluniversal.com/nacional-y-politica/150603/venezuelan-opposition-coalition-sets-protest-agenda)

 

Dissident socialists urge regime to investigate corruption

Dissident and former members of Venezuela's ruling Socialist Party have asked the regime to investigate alleged multi-billion dollar frauds they say have flourished under the country's strict currency controls. MAREA SOCIALISTA, a small group of leftist intellectuals, as well as fringe members of the Socialist Party, say corrupt companies and complicit officials are gaming a currency system designed to control imports ranging from foods to medicines. (Reuters, http://www.reuters.com/article/2015/06/03/venezuela-politics-idUSL1N0YP1K920150603)

 

Simultaneous attacks against two opposition mayors’ offices

El Hatillo Mayor David Smolansky, a militant of Voluntad Popular, has denounced that armed pro-government groups attacked two mayors’ offices headed by members of his party: The Páez District’s in Apure whose mayor was removed by the TSJ, based on an irregular decision from the district’s council and Mario Briceño Irragorri’s in Aragua state where a municipal worker, camera man Alejandro Ledo, was thrown off a balcony. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44172&idc=1; El Universal, http://www.eluniversal.com/nacional-y-politica/150604/fifteen-people-injured-in-captured-mayors-office-in-aragua-state)

 

 “Venezuela does not cooperate in the fight against drug trafficking", according to US Southern Command Chief General John Kelly in statements at the International Conference against Illegal Drugs held in Cartagena, Colombia. He pointed out a significant amount of the cocaine going to Europe or the United States leaves from Venezuela. He added Venezuela is the only country in the region with which there is no cooperation. The Venezuelan Ministry of Foreign Affairs quickly issued a communiqué rejecting Kelly's remarks, and said that such statements harm "efforts" to normalize bilateral relations. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44170&idc=1; El Universal, http://www.eluniversal.com/nacional-y-politica/150604/venezuelan-foreign-office-rejects-us-drug-trafficking-accusations)

 

Maduro claims an opposition legislator is implicated in Congressman Serra's murder

Julio Vélez, a former alderman in Cúcuta, Colombia, has been arrested and charged with masterminding the murder of pro-government legislator Robert Serra and his assistant. National Assembly President Captain Diosdado Cabello reports Vélez's connections in Venezuela are being investigated, and confirms that Vélez is a fugitive of Colombia's justice for murdering his wife and other crimes. He added that his father manages brokerage firms on the border are "the ones that plot to economically destabilize the country." Later, President Nicolás Maduro said an opposition legislator from the United Democratic Conference (MUD) could be implicated in the case, but did not provide a name. (El Universal, http://www.eluniversal.com/nacional-y-politica/150604/authorities-investigate-julio-velezs-connections-in-venezuela; and more in Spanish: http://www.eluniversal.com/nacional-y-politica/150605/maduro-diputado-de-la-mud-esta-implicado-en-caso-serra)

 

Maduro suggests Maradona as FIFA President

President Nicolás Maduro says the FBI investigation of corruption in the international soccerl federation, FIFA, is a maneuver to wrest the seat of the World Cup away from Russia and Qatar in 2018 and 2022. He also suggested that Argentina's former soccer star Diego Maradona - a fan of both the Castro and Maduro regimes - should take over the reins of FIFA from Joseph Blatter. Maradona has for a long time denounced corruption at the highest levels of FIFA. More in Spanish: (Infolatam, http://www.infolatam.com/2015/06/03/venezolano-maduro-sugiere-a-maradona-como-presidente-de-la-fifa/)

 

 

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.

June 02, 2015

International Trade

 

CONSECOMERCIO warns that there is no merchandise transiting customs

Cipriana Ramos, President of the National Council of Trade and Services (CONSECOMERCIO) has warned that "there is no merchandise transiting customs" due to the lack of FOREX allocation, and terms the situation critical at port cities. She says "there are no imports, very few due to the drought in FOREX", and adds "Venezuela's market is fed by imports because there is no domestic production". More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/empresas/consecomercio--en-las-aduanas-no-hay-mercancia.aspx#ixzz3btjPiJp0)

 

 

Oil & Energy

 

Venezuela oil price falls for 2nd week

Venezuela's weekly oil basket price fell for the second week after 8 straight weeks of gains as well-supplied markets continued to push prices down inspite of the beginning of the US driving season. According to figures released by the Ministry of Energy and Petroleum, the average price of Venezuelan crude sold by Petroleos de Venezuela S.A. (PDVSA) during the week ending May 29 was US$ 55.37, down US$ 0.91 from the previous week's US$ 56.28. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2389352&CategoryId=10717)

 

ExxonMobil has found oil in the Essequibo region disputed by Venezuela

ExxonMobil has made a significant oil discovery in their first drilling on a well called the Stabroek Block, "located 120 miles offshore Guyana."  The Guyanese are partners in the future exploitation (of which they expect to start reaping the benefits over the next few years) in which Esso Exploration and Production Guyana Ltd. (a subsidiary of ExxonMobil) holds 45% interest. Hess Guyana Exploration Limited holds 30% interest and CNOOC Nexen Petroleum Guyana Limited holds 25% interest. (El Universal, http://www.eluniversal.com/nacional-y-politica/150530/the-essequibo-is-no-longer-yours)

 

 

Commodities

 

Import requests approved for packaging industry

The government has approved requests for FOREX by the packaging industry, according to a report by José Manuel González, President of the Packaging Chamber. He said the approvals were for important amounts: "before they were scarce, but these have been significant. Some companies got 100% approval for their pending requests". More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Gobierno-solicitudes-importacion-sector-envases_0_638936310.html)

 

 

Economy & Finance

 

Central Bank meets with private banks to halt the rise in parallel FOREX market

The Central Bank has invited representatives of the private financial system to meet in order to analyze the rise in the parallel exchange rate and possible options to halt it. This will be the first step taken by the Central Bank - after a long time - to discuss the problems with the FOREX system. It is reported that the government is hoping to get private banks to trade their FOREX holdings within the official SIMADI system. More in Spanish:  (El Nacional, http://www.el-nacional.com/economia/BCV-privados-evaluan-frenar-paralelo_0_638936312.html)

 

Former Vice President Rangel sounds an alarm on the economy

Former Chávez Vice President José Vicente Rangel, who also served Chavez as Foreign Minister and Defense Minister,- has referred to the national economy in his weekly column this week. After a lengthy defense of Diosdado Cabello, he wrote "anxiety is growing due to what is going on (in the economy) ...the dollar exchange is rocketing to unheard of levels...and the reason mentioned is repetitive...it is not an answer, because every crisis has a moment when the devils run loose. Well meaning criticism must be considered." After repeating pollster Luis Vicente's quote that "this mess will not be solved by spouting out trash, closing web pages or throwing people into jail, but by restoring lost rationality", he indicates that "lost rationality" means "taking note of different opinions, sharing serious proposals, and not locking into unyielding positions." More in Spanish: (Noticias24, http://www.noticias24.com/venezuela/noticia/285191/jvr-diosdado-cabello-es-una-presa-privilegiada-por-su-firmeza-y-su-capacidad-de-trabajo/)

 

Venezuela is holding the highest gold reserves in Latin America

The state information agency AVP has divulged a report by the World Gold Council that indicates Venezuela is holding the highest and most stable gold reserves in Latin America. The report Venezuela's gold reserves of 367-6 tons, which is 69.3% of its total reserves, and is in 16th place in the world. Mexico follows with 122.3 tons, which are 2.4% of its total reserves. More in Spanish: (Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/venezuela-mantiene-mayores-y-m%C3%A1s-estables-reservas-oro-am%C3%A9rica-latina)

 

IADB has disbursed US$ 7 billion to Venezuela since 1961, considering future plans

The Inter-American Development Bank (IADB) has sponsored 347 development projects intended to improve Venezuelans' lives since 1961, including a plan on "Promotion and development of renewable energy sources in Venezuela." Past projects include the National System of Youth and Children's Orchestras, signed in June 2013. New projects from Venezuelan businesspersons are currently being considered, but there is yet no commitment as to the outlay. One plan, in the preparation stage, is intended to encourage renewable energy sources in rural communities of the Andes and south Venezuela. (El Universal, http://www.eluniversal.com/economia/150530/iadb-has-okayed-usd-7-billion-for-venezuela)

 

 

Politics and International Affairs

 

Capriles warns the regime has not ruled out suspending parliamentary elections

Former Presidential candidate and Miranda State governor Henrique Capriles says the delay in announcing a date for the next parliamentary elections slated for this year is because the regime "does not rule out" the idea of suspending them. He adds that "never before has there been a date not disclosed with the appropriate advance time for elections scheduled the same year".  National Elections Council President Tibisay Lucena has said the voting will take place in the last quarter this year, and President Nicolás Maduro has said they will be held "come rain or shine". But Capriles said Lucena is the "campaign manager for abstention", which is what she is seeking, and adds that "never before" has the government party been "losing by 20%" in "any poll".  Capriles says "the government is the only one interested" in dividing the opposition. More in Spanish: (Noticiero Digital, http://www.noticierodigital.com/2015/06/capriles-dice-que-el-gobierno-no-descarta-suspender-legislativas/)

 

Opposition march draws thousands to demand release of jailed opposition leaders

Thousands of people demonstrated Saturday in Caracas and across the nation in support of jailed opposition leaders Leopoldo Lopez and Daniel Ceballos, both on a hunger strike to demand their release and the scheduling of this year’s legislative elections. The demonstrators, most of them wearing white, marched down one of the principal streets of the capital with banners and slogans calling for Lopez and Ceballos to be freed along with other political prisoners like the metropolitan mayor of Caracas, Antonio Ledezma, while slamming the government of President Nicolas Maduro. Lilian Tintori, wife of Leopoldo López, reports he has lost 5 kilos and refuses to be transported in an ambulance. He was taken in military transport to the Palace of Justice for renewed hearings in his case. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2389367&CategoryId=10717; and more in Spanish: (El Nacional, http://www.el-nacional.com/politica/Lopez-trasladado-cuidado-medico-tribunales_0_638936333.html

 

Maduro: No foreigner can come and give me orders

President Nicolás Maduro has rejected the visit of former presidents Andrés Pastrana (Colombia) and Jorge Quiroga (Bolivia), who came to Venezuela to try to visit detained dissenters Leopoldo López and Daniel Ceballos. "No one from abroad can ever come to give me or the people of Venezuela orders," Maduro said. (El Universal, http://www.eluniversal.com/nacional-y-politica/150601/maduro-no-foreigner-can-come-to-give-me-orders)

 

Venezuelan regime to be evaluated by three UN bodies

June will be a busy month for Venezuelan authorities when it comes to human rights, as they are to face three evaluations by three different bodies of the United Nations (UN). The first test will be before the International Labor Organization (ILO), with which labor unions have filed complaints related to harassment or detention against workers' representatives, and the Venezuelan government's refusal to discuss collective bargaining agreements, said the Worker's National Union (UNETE). Another Venezuelan delegation will appear before an independent experts' committee in Geneva (Switzerland). The committee is to evaluate Venezuela's level of compliance with the International Covenant on Economic, Social and Cultural Rights. Last, Venezuelan authorities will appear before the Civil and Political Rights Committee, to face reports on lack of independence of the Judiciary, criminalization of protest, the state of affairs in prisons, the trend to criminalize demonstrations, and of course, reports of abuses by police and military officers during anti-government protests staged in Venezuela in 2014. In this last evaluation, Venezuelan officials will not only be given feedback and recommendations, but also a deadline to adopt them. (El Universal, http://www.eluniversal.com/nacional-y-politica/150601/venezuela-to-be-evaluated-by-three-un-bodies-in-june; Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44112&idc=1)

 

Cabello will sue in U.S., Spanish media over drugs reporting

National Assembly President Captain chief Diosdado Cabello says he plans to file lawsuits in Spain and the United States following media reports that link him and other top officials to cocaine trafficking and money laundering. The Wall Street Journal has reported that U.S. federal prosecutors were gathering evidence from former cocaine traffickers and military defectors as part of an investigation into Cabello, No. 2 of the ruling Socialist Party. Spanish newspaper ABC published a story alleging Cabello's former security chief had fled for the United States with evidence that Cabello was involved in the drug trade. Cabello denies the charges, and has sued three Venezuelan media outlets for republishing information from the ABC story. (Reuters, http://www.reuters.com/article/2015/05/31/venezuela-media-idUSL1N0YM0EH20150531; Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44111&idc=1; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2389394&CategoryId=10717; El Universal, http://www.eluniversal.com/nacional-y-politica/150601/cabello-opposition-seeks-to-demoralize-us-to-stage-a-coup)

 

Pope Francis will receive Nicolás Maduro this Sunday, June 7 when the latter will be visiting Rome to receive an FAO’s award. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44114&idc=1; El Universal, http://www.eluniversal.com/nacional-y-politica/150601/pope-francis-to-meet-with-president-nicolas-maduro-on-june-7)

 

There are 18,000 criminal bands operating in Venezuela with some 72,000 free criminals and around 60,000 who remain incarcerated, according to attorney and criminologist Fermín Mármol García. He explained there are 70 murders in Venezuela for every 100,000 inhabitants, and claimed only six crimes are solved out of every 100 in the country. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44113&idc=1)

 

Deportation of Venezuelans from the United States plummets

Deportation of Venezuelans from the United States dived to its lowest level in the past seven years, accounting for 153 expulsions at the end of 2014. In any case, this has not discouraged some US politicians from bringing forward initiatives to prevent deportation of Venezuelans. In 2007-2014, US authorities deported 2,937 Venezuelans for having committed some kind of offense, mostly related to migration fraud. The US Immigration and Customs Enforcement (ICE) reported that by 2014, 153 Venezuelans were deported compared with 187 in 2013, that is: an 18% decline. (El Universal, http://www.eluniversal.com/nacional-y-politica/150530/deportation-of-venezuelans-from-the-united-states-plummets)

 

 

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.