May 09, 2017

Logistics & Transport

CONVIASA flights reportedly have been suspended

Journalist Elyangelica Gonzalez has reported that Venezuelan airline CONVIASA has suspended national and international flights due to “a matter involving the payment of aircraft insurance”. More in Spanish: (NOTIMINUTO: http://www.notiminuto.com/noticia/reportan-suspension-de-vuelos-de-conviasa/)

 

Oil & Energy

Venezuela braces for double whammy if U.S. imposes oil sanctions

Venezuela would be hit from two directions if the U.S. were ever to impose oil-related sanctions against this nation where at least 30 have died in anti-government protests in the past month. American drivers may pay more at the pump as well. Speculation about possible new U.S. sanctions has increased because of President Nicolas Maduro’s announced plan to rewrite the constitution. America is the biggest buyer of Venezuelan crude, and CITGO Petroleum Corp., the U.S.-based refiner controlled by Petroleos de Venezuela SA, takes the largest share of those imports, according to analysis of U.S. government data compiled by Bloomberg. If CITGO can’t buy from its parent company because of sanctions, it would be forced to pay more on the spot market, said Mara Roberts, a New York-based analyst for BMI Research. “PDVSA’s reliance on the U.S. market has put it in an extraordinarily difficult position,” Roberts said. “An embargo would cripple its revenues to an even greater extent, which would be terrible news in the run-up to another large debt payment in the fourth quarter.” (Bloomberg, https://www.bloomberg.com/news/articles/2017-05-08/venezuela-braces-for-double-whammy-if-u-s-imposes-oil-sanctions)

 

Venezuela oil price falls for 2nd consecutive week
The price Venezuela receives for its mix of medium and heavy oil fell as U.S. production continued increasing among supply builds in the U.S. According to figures released by the Ministry of Petroleum and Mining, the average price of Venezuelan crude sold by Petroleos de Venezuela S.A. (PDVSA) during the week ending May 5 fell to US$ 41.27, down US$ 1.19 from the previous week's US$ 42.46. According to Venezuelan government figures, the average price in 2017 for Venezuela's mix of heavy and medium crude has fallen to US$ 44.46.(Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2435931&CategoryId=10717)

 

Economy & Finance

Hidden numbers reveal scale of Venezuela’s economic crisis

Most statistics tracking Venezuela’s economy are either unreliable or have been discontinued, after national account data were suspended in 2015. Even the IMF has only partial information, as its latest interaction with Venezuela’s authorities dates back to 2004. But figures relating to Venezuela’s relations with the rest of the world offer clear insights into the scale of its problems. Venezuelans are leaving the country, heading mostly for Spain and the US. Foreign investment has dried up. es. US data show that in 2016 US net foreign direct investment in Venezuela turned negative for the first time since the series began in the early 1990s. Last year, Venezuela was the only country with which the US had negative net income flow among the 58 countries for which data are available. Overall foreign investment and acquisitions have stalled, and there have been no deals to date this year. Venezuela’s oil exports — which account for about 90% of its total exports in value terms — have collapsed, not just because of the drop in prices but also in volume terms as production has folded. The country is running out of cash to fund bond repayments Venezuela has been raiding its foreign reserves, which have dropped to about US$ 10billion, from US$ 30 billion before Maduro was elected in 2013. Economic contraction is coupled with hyperinflation. Venezuelans are seeing the value of their money shrink at the fastest pace in the world. The IMF estimates an inflation rate of 720% for this year, skyrocketing even further in the coming years. “Price controls, limitations on access to foreign currency and the collapse of the private sector in the provision of basic goods, have cumulatively led to one of the world’s highest inflation rates,” the World Bank wrote in a recent report. This means that Venezuelans see the value of their money and the ability to buy goods and services massively shrink day by day. According to IMF data, Venezuela’s GDP will contract by 7.4% in 2017, meaning the economy will have shrunk about 30% since 2013 — one of the largest peacetime economic contractions since the second world war. (Financial Times: https://www.ft.com/content/a6f7bdae-2f46-11e7-9555-23ef563ecf9a)

 

Politics and International Affairs

Venezuela opposition boycotts meeting on Maduro assembly, as civilians subjected to military courts

Venezuela's opposition boycotted a meeting on Monday to discuss President Nicolas Maduro's plan for a new popular assembly, preferring to protest in the streets where they were again blocked by security forces firing tear gas. Opposition Governor Henrique Capriles said that Maduro’s constitutional assembly goes against the Venezuela’s charter, which requires approval of the nation’s voters to alter the constitution. Capriles said that if the government “continues with this madness,” Venezuela will be ungovernable, he said. In familiar scenes from five weeks of unrest, youths with gas masks and makeshift shields faced off with police and National Guard troops in Caracas, after hundreds of demonstrators were stopped from reaching government offices. Venezuela's opposition is demanding elections to resolve the country's grave political crisis. The 54-year-old successor to Hugo Chavez is setting up a "constituent assembly" super body with power to rewrite the constitution and shake up public powers. But no representatives of the opposition Democratic Unity coalition went to the Miraflores presidential palace on Monday despite an invitation from Education Minister Elias Jaua who is leading the constituent assembly process.  "It's a trick to keep themselves in power," said Julio Borges, leader of the National Assembly legislature where the opposition won a majority in 2015. "The only way to resolve this crisis is with a free vote." The unrest has killed at least 37 people since early April, including protesters, government sympathizers, bystanders, and security forces. Hundreds have also been hurt and arrested.  Local rights group Penal Forum said 1,845 people had been detained since April 1 over the protests, with 591 still behind bars. Opposition leaders said 200 of those were being processed by military tribunals in Carabobo state. Perhaps to justify the use of those military tribunals, officials say they are now facing an "armed insurrection". Red-shirted Maduro supporters also rallied in Caracas on Monday. (Reuters: http://www.reuters.com/article/us-venezuela-politics-idUSKBN18424I; Bloomberg, https://www.bloomberg.com/politics/articles/2017-05-07/venezuela-opposition-boycotts-maduro-s-constitution-rewrite; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2435923&CategoryId=10717; (NBC News: http://www.nbcnews.com/slideshow/venezuela-upheaval-shows-no-signs-slowing-down-n755606

 

Hundreds evacuated in Maracaibo as tear gas seeps into homes

Hundreds of people were evacuated from buildings in Maracaibo, the nation’s second largest city, after security forces fired tear gas during a clash with protesters and the gas spilled into homes, schools and a hospital. The protest turned violent when demonstrators were blocked by national guardsmen while trying to deliver a letter expressing their disdain for socialist President Nicolas Maduro's push to rewrite the nation's constitution. Protesters tried to get around the officers by finding another route but were pushed back by heavy clouds of tear gas in a raucous exchange that continued for more than an hour, witnesses said. Juan Diego Amado, an anti-government activist, said he entered one building housing a foundation housing about 300 children and elderly residents and found many coughing and in tears after inhaling the fumes. Volunteers rushed children still in diapers, others in strollers and the elderly in wheelchairs out of the building to hospitals for treatment. Continued protests in Venezuela's capital Monday resulted in 60 people being injured, said Ramon Muchacho, a Caracas-area mayor. (ABC News: http://abcnews.go.com/International/wireStory/hundreds-evacuated-venezuela-tear-gas-seeps-homes-47286900)

 

Hugo Chávez statue torn down as death toll rises in Venezuela protests

The demonstration began with a group of schoolboys, who gathered – still dressed in their school uniforms – in the palm-lined square outside the town hall of the prairie town of Villa del Rosario in western Venezuela. Before long, some kind of flammable liquid was thrown at a life-sized statue of the late president Hugo Chávez and set alight. And then, to cheers from onlookers, the figurine itself – which appeared to be made of fiberglass or plastic – was pulled down and dragged into the street. In terms of historical significance, the incident is unlikely to rank alongside the toppling of Saddam Hussein’s 12-meter statue in Baghdad, shortly after the 2003 invasion of Iraq. But the destruction of the statue last Friday did not go unnoticed in a country where many public buildings are still adorned with images of Chávez, four years after his death. Over the weekend, cellphone pictures and footage of the incident went viral in Venezuela, where amid widespread discontent with president Nicolás Maduro, Chávez’s handpicked successor, has erupted into near-daily protests. Since then, the gesture has been repeated elsewhere: in Ureña, a town in western Venezuela, a bust of Chávez disappeared from a public square, and in the late leader’s home state of Barinas, a mural with the leader’s face reproduced in the style of Warhol was defaced. Some argue that such incidents demonstrate that after years of economic chaos, food shortages and government repression, Venezuelans have finally reached the breaking point.  But others warn that, as Maduro moves forward with plans to rewrite the country’s constitution despite six weeks of anti-government protests – talk of a tipping point still seems premature. According to Luís Vicente Leon, a leading pollster, the collapse of authoritarian regimes is more often caused by internal splits than outside pressure.  Although pressure on Maduro may be mounting, it is still not coming from two key areas, Leon said. “The electoral authorities validated the constituent assembly, and perhaps most important, we haven’t seen the military express dissent,” he said. For now, the war of attrition between government and opposition looks set to continue, and the death toll seems certain to rise. Monica Pérez, who lives close to the square where the Chávez monument once stood said that the toppling of the statue had galvanized the opposition in the town. “It was the first time I saw this happen here,” she said. “We all feel the moment is now, and we must continue in the streets until the end”. (The Guardian: https://www.theguardian.com/world/2017/may/09/hugo-chavez-statue-toppled-venezuela-breaking-point)

 

Roses in hand, Venezuelan women protesters face security forces

Dressed in white and chanting "Liberty!", tens of thousands of women opposed to Venezuela's socialist President Nicolas Maduro marched on Saturday, proffering roses to security forces who blocked their way. The women's marches took place in most major cities around the nation. In Caracas, marchers sang the national anthem and shouted: "We want elections!" They were halted at various points by lines of policewomen and National Guard troops with armored cars. (Reuters, http://www.reuters.com/article/us-venezuela-politics-idUSKBN1820NM; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2435899&CategoryId=10718)

 

Press union reports over 200 acts of aggression against journalists

Marco Ruiz, Secretary General of the National Press Workers Union, has asked the Attorney General’s office to investigate over 200 acts of aggression against journalists and media workers to date this year. He reports “most” of the attacks were by government security forces, and victims say their equipment was either stolen or destroyed. He said there are 18 arrests registered. More in Spanish: (Notiminuto: http://www.notiminuto.com/noticia/sindicato-de-la-prensa-denuncia-200-agresiones-a-trabajadores/)

 

Venezuela crisis: What is behind the turmoil?

Venezuela is split into Chavistas, the name given to the followers of the socialist policies of the late President Hugo Chavez, and those who cannot wait to see an end to the 18 years in power of his United Socialist Party (PSUV). After the socialist leader died in 2013, Maduro has not been able to inspire Chavistas in the same way his predecessor did. His government has furthermore been hampered by falling oil prices. The lack of oil revenue has forced the government to curtail its social programs, leading to an erosion of support among its core backers. A series of events has further heightened tensions between the government and the opposition and led to renewed street protests. Key was the surprise announcement by the Supreme Court on 29 March that it was taking over the powers of the opposition-controlled National Assembly. The opposition said that the ruling undermined the country's separation of powers and took Venezuela a step closer to one-man rule under Nicolas Maduro. The court argued that the National Assembly had disregarded previous Supreme Court rulings and was therefore in contempt. While the Supreme Court reversed its ruling just three days later, distrust of the court did not subside. Anti-government protesters have been calling for fresh general elections. They have four key demands: Removal from office of the Supreme Court justices who issued the 29 March ruling; general elections in 2017; creation of a "humanitarian channel" to allow medication to be imported to counter the severe shortages in Venezuela; release of all the "political prisoners". Faced with almost daily protests, Maduro probably felt he needed to make a move. Not willing to give in to the opposition's demand for early presidential elections, he chose to announce the creation of a constituent assembly. Opposition leaders have denounced the move as an attempt by President Maduro to maximize his power and cling on to it for longer. They argue that the process of setting up a constituent assembly and drawing up a new constitution would almost certainly mean that regional elections due to be held this year and presidential polls scheduled for December 2018 would be delayed. (BBC News: http://www.bbc.com/news/world-latin-america-36319877)

 

In Venezuela’s chaos, elites play a high-stakes game for survival

Even as Venezuela sinks into chaos, with clashes between protesters and the police escalating, why have its powerful political and military elites stuck by President Nicolás Maduro? The country would seem to be a prime candidate for something scholars call an “elite fracture,” in which enough powerful officials break away to force a change in leadership. Still, splits are beginning to emerge, as a few figures in major institutions signal opposition to Maduro, hinting at growing dissatisfaction and the government’s inability to silence it. Recent actions by both elites and the government suggest they take the possibility of fracture seriously — maneuvering in a high-stakes contest that is potentially decisive but whose outcome remains uncertain. Elite fracture operates as a kind of game in which each player tries to figure out what the others are about to do. Stay loyal to a failing government too long and you risk going down with it. But if you break with the government and others don’t, you’ll pay a high price for disloyalty. Members of the elite, in this game, try to test one another over where they stand, as well as the government’s strength, to decide whether to remain loyal. If enough believe they have achieved critical mass to force a leadership change, they will all push at once. Luisa Ortega, the attorney general, conducted such a test, whether she intended to or not, in late March. When the pro-Maduro Supreme Court moved to seize many of the legislature’s powers, Ortega condemned the ruling as a “rupture of the constitutional order.” The government faced a dilemma. Tolerating Ortega’s dissent would signal that elites could more freely break with Maduro, making action against him easier. But punishing her would risk backlash from any elites who shared her view. Ortega went unpunished, and the ruling was reversed. Rapid policy changes can open such fissures by forcing elites to decide whether to go along. This is why periods of crisis can heighten risks of elite fracture, as governments make rapid changes to keep up. The deciding vote in these situations is often cast by the military, which has the power to break a deadlock among elites and, often, the popular legitimacy to lead a transition. In Venezuela, some are already calling on the military to step in. By conferring pre-emptive legitimacy, they signal to potential coup leaders that they would enjoy at least some elite support. Even a loyal military, when forced to resolve a political crisis, might decide against the leader who called it in. The impossibility of fully predicting how the military might decide in another crisis, along with growing unrest that could again test it, has left the government nervous. Loyalty was once purchased with oil revenue, but as the economy worsens, elites compete over a smaller pie. Venezuela is also growing internationally isolated, forcing elites to fear they could face foreign sanctions or even criminal charges if they remain loyal and the government falls. This is part of what makes the lack of widespread defection, amid Venezuela’s economic collapse, so unusual. Chavez’s hyper-charged populism succeeded in so dividing society that crossing over remains, for many, unthinkable. And so ideological dedication remains widespread, including among elites. That same fervor could create an opportunity for dissidents, however. Venezuela’s few defecting elites have tended to portray themselves as the true guardians of Chávez’s cause and Maduro as the traitor. And younger, second-tier Chávistas may worry about Maduro’s damage to the cause and its longevity. This is why coups are often led by colonels or civilians of equivalent rank, who also enjoy fewer fruits of patronage and so face less downside in defecting. But movement can come only when elites, junior or senior, are sure they have the numbers to win. And any contest over ideological loyalty will tilt toward the status quo. The rules of the game still favor Maduro, even if the state of play does not. (The New York Times: https://www.nytimes.com/2017/05/06/world/americas/venezuela-unrest-protests.html?smprod=nytcore-iphone&smid=nytcore-iphone-share)

 

Venezuela's ex-spy chief promotes possible presidential bid

Nationwide protests are spreading beyond President Nicolás Maduro’s control and risk morphing into civil war, said the retired Venezuelan general in charge of suppressing the last wave of unrest three years ago. “We’re seeing much larger masses protesting across all major cities, including the working-class neighborhoods” once firmly supporting the government, said Major Gen. (Ret.) Miguel Rodríguez Torres, who adds that the government is losing control amid growing protests nationwide and should move now to call elections. A former spy chief under the late Hugo Chavez, Rodríguez Torres is emerging as a political player in turbulent Venezuela, mistrusted by the opposition and despised by the government as he travels the country in a possible bid for the presidency. He is a longshot who hopes to offer a third way for Venezuelans weary of the country's violence and economic woes. Reviled among President Nicolas Maduro's opponents for leading a crackdown on anti-government protesters in 2014, Rodriguez Torres has also alienated government loyalists with his sharp criticism of the socialist administration. But he nevertheless is finding an audience among Venezuelans who have abandoned support for a government that has failed to resolve the economic crisis but still distrust the opposition. In a recent interview, the 53-year-old Rodriguez Torres blamed Maduro for destroying Venezuela's oil-rich economy, failing to rein in violence from pro-government militias and silencing critics. He said he is wary of the street protests launched by the president's foes and instead preaches a message of reconciliation grounded in his evangelical Christian faith. Pollsters haven't included Rodriguez Torres in their surveys yet, but his criticism of Maduro hasn't gone unnoticed. High-ranking officials in recent weeks have accused him of treason or playing into the opposition's hands. His aides say Venezuelan media are under pressure not to interview him and social media is filled with speculation he could be jailed for speaking out like other once loyal military bigwigs. Others trying to occupy Venezuela's almost invisible middle ground include another Chavez army acolyte, Lara state Gov. Henri Falcon, and chief prosecutor Luisa Ortega, who shocked the nation by saying constitutional order had been violated when the Supreme Court briefly gutted the opposition-controlled congress of its powers a few weeks ago. Rodriguez Torres' close ties to Chavismo's military wing are what distinguish him from a growing cadre of administration critics on the left. While outwardly loyal to Maduro, many in the armed forces are believed to be unhappy with the government but fearful that if the opposition takes power they'll lose privileges and influence accumulated during 17 years of socialist rule. Rodriguez Torres' proposals seem taken straight from the opposition's playbook. He sees Venezuela's economic problems rooted in decade-old foreign currency controls and says he would go to the International Monetary Fund, which Chavez railed against, for help it if put food on Venezuelans' table. He said he'd also like to patch up relations with Chavez's old nemesis, the United States. (The Times Colonist: http://www.timescolonist.com/venezuela-s-ex-spy-chief-promotes-possible-presidential-bid-1.18890700#sthash.IWk3L2IB.dpuf; The Wall Street Journal: https://www.wsj.com/articles/former-minister-warns-of-civil-war-in-venezuela-1494263279)

 

Defense Minister says no armed groups outside the military are acceptable

Defense Minister General Vladimir Padrino López has said the term “colectivos” (pro government paramilitary) has been misused. “Any armed group, that are not the Armed Forces, police organizations, security organizations, that are operating out there, whatever they call themselves, are outside the law and must be treated as such. We accept no armed group outside the Armed Forces, the only armed institution here are the Armed Forces”. He added: “The Venezuelan people are being told that we are training civilians, that we support ‘colectivos’, and there is something we reject whatever name they take: guerrilla, paramilitary, criminal bands, whatever they call themselves, outside the law, they will receive a Constitutional response”. He denied there were any military officers under detention for “discontent” – a charge made by opposition leader Henrique Capriles; but added that 3 officers that deserted and sought asylum in Colombia are under investigation. In another statement the following day, Padrino said that out of 37 dead in demonstrations, 22 were murdered with firearms, which he says that current protests “are in line with subversion and armed insurrection”. He defended actions by the Bolivarian National Guard (GNB) during the demonstrations, and claimed they have “contained” violence, adding that this new wave of protests is “far more violent” than those held 3 years ago, and blamed opposition leaders based on what he called “very serious” investigations. Padrino concluded by saying the Armed Forces unconditionally support a Constitutional assembly process through “universal, direct, secret and free” voting; and added that it is “premature” to talk of the way representatives would be selected. Padrino called the recent Supreme Tribunal ruling against the Legislature an “excess” that “cannot be termed a coup d’etat”. He says the Armed Forces will conduct “a great internal debate, at all levels”, to determine the military institution they envision for the next years. He referred to the so-called Bolivarian Militia, which became the center of attention after Maduro increased their number 50 500,000 and allocated resources to provide them with rifles. He said the militia is currently around 400,000 and should not be viewed simply as armed civilians because “they are trained in all senses, not just combat”. He added that although there are weapons available for all, all weapons are controlled by the Armed Forces and are only given to them when the task assigned requires. More in Spanish: (Notiminuto: http://www.notiminuto.com/noticia/padrino-lopez-no-admitimos-ningun-grupo-armado-distinto-a-la-fanb/; http://www.notiminuto.com/noticia/vladimir-padrino-asumo-la-responsabilidad-del-bienestar-de-lopez/)

 

Maduro to convene a military constitutional assembly

President Nicolas Maduro now says he will call for a military constitutional assembly to strengthen all branches of Venezuela’s armed forces. He also called on the business community to select representatives. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/politica/presidente-maduro-activara-una-constituyente-militar)

 

Jaua says no vote can be called to call for a Constitutional Assembly

Educations Minister Elías Jaua, who heads the Constitutional Presidential Committee, has told opposition leaders within the Democratic Unity coalition that there is no part of the Constitution that requires a vote to call for a Constitutional Assembly. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/politica/jaua-asegura-que-no-se-puede-realizar-un-referendo-consultivo-para-convocar-la-constituyente; El Universal, http://www.eluniversal.com/noticias/politica/carta-mud-jaua-constituyente-ilegitima-inconstitucional_651719)

 

Wife says Venezuela's jailed Lopez is well, urges more protests

Jailed opposition Venezuelan politician Leopoldo Lopez is well and is urging street demonstrators to keep up massive anti-government protests, his wife said on Sunday after her first visit with the former presidential hopeful in over a month, putting to rest rumors of his ill health. With tension already high after over a month of street action, many Venezuelans were shocked on Wednesday when a journalist tweeted that Lopez had been taken to hospital without vital signs. The government accused the Lopez clan of whipping up a media frenzy to gain attention. Lopez is indeed alive and well, Tintori told reporters after a visit at the Ramo Verde military prison with Lopez's mother and two children. (Reuters, http://www.reuters.com/article/us-venezuela-politics-idUSKBN184009; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2435937&CategoryId=10717)

 

Almagro says Venezuela needs a new leader, blasts use of military courts for civilians

OAS Secretary General Luis Almagro says Venezuelan President Nicolas Maduro has gone too far to bring the country back from the brink, and that the crisis-ridden nation needs elections and a peaceful transition of power -- not the new constitution that Maduro has promised. “Venezuela is drowning in an economic, financial, social and humanitarian crisis of gigantic proportions,” he said, adding that: “There is a dictatorship in Venezuela, and Venezuela needs elections. The only institutional exit for the country is a general election.” (Bloomberg, https://www.bloomberg.com/news/articles/2017-05-08/venezuela-needs-a-new-leader-not-new-constitution-almagro-says)

 

Pope urges Venezuelans to "build bridges"

The Venezuelan Bishops’ Conference (CEV) has released a letter to them from Pope Francis, expressing “awareness of the challenges you face” and thanking bishops for their “continued appeal to prevent any form of violence, observe citizens’ rights and foster human dignity and fundamental rights and liberties”. Pope Francis encouraged Venezuelan bishops to work on the building of bridges between the government and the opposition to resolve the domestic predicament. He said he was following “with concern the situation of the Venezuelan people in view of the serious problems they suffer,” and expressed “deep sorrow for clashes and violence these days,” in the middle of a wave of protests resulting so far in at least 37 killings and over 700 injured people. (El Universal, http://www.eluniversal.com/noticias/daily-news/pope-emboldens-venezuelans-build-bridges_651650)

 

U.S. National Security head McMaster meets with Venezuela opposition leader Borges

National Security Advisor McMaster met with Venezuela's National Assembly President Julio Borges at the White House. They discussed the ongoing crisis in Venezuela and the need for the government to adhere to the Venezuelan Constitution, release political prisoners, respect the National Assembly, and hold free and democratic elections.  They agreed that there is a strong need to bring the crisis to a quick and peaceful conclusion. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2435935&CategoryId=10717)

 

…and Borges met with OAS Secretary General Almagro, who condemns use of military tribunals against civilians.

Borges also met with OAS Secretary General Luis Almagro and consigned with him a letter to the organization’s Permanent Council designed to halt Venezuela’s withdrawal from the OAS, which requires legislative approval. He also sent a video deploring actions by military prosecutors against civilians. He compared the Maduro regime to past Latin American military dictatorships. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/politica/julio-borges-entrego-documento-a-la-oea-para-frenar-salida-de-venezuela; El Mundo, http://www.elmundo.com.ve/noticias/actualidad/noticias/julio-borges-entrego-documento-a-la-oea-para-evita.aspx; (El Universal, http://www.eluniversal.com/noticias/politica/almagro-condena-que-civiles-venezolanos-sean-condenados-tribunal-militar_651759)

 

US Congressmen ask Trump to take Venezuela’s case to the UN

A group of 15 US Congressmen have asked President Trump to take the case of Venezuela to the UN Security Council, seeking support in providing humanitarian aid to Venezuela. They also asked the President to sanction Venezuelan officials and paramilitary that are responsible for violating human rights during ongoing protests. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/congresistas-eeuu-piden-trump-llevar-crisis-venezuela-ante-onu_651226)

8 nations deplore “worsened” violence here.

Eight Latin American nations have issued a statement deploring “worsening violence” in Venezuela. Argentina, Brazil, Colombia, Costa Rica, Guatemala, Honduras, Mexico and Paraguay signed the declaration saying: “We condemn the excessive use of force by Venezuelan authorities against civilians marching to protest government actions that hurt democratic stability, polarize Venezuelan society even further, and lead to the loss of lives, most of them young”. (El Universal, http://www.eluniversal.com/noticias/politica/ocho-paises-deploran-recrudecimiento-violencia-pais_651227)

 

Colombia’s Santos calls for release of political prisoners, slams Constitutional Assembly

Colombian President Juan Manuel Santos says a Constitutional Assembly is not an “adequate way out” for Venezuela. He says: “what is necessary first is an elections timetable, respect for the National Assembly, return its power to it, comply with the Constitution, and within that spirit to start releasing political prisoners”.  More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/internacional/santos-afirma-que-una-constituyente-no-es-la-salida-adecuada-para-venezuela)

 

Samper: Casualties are all Venezuelans

Ernesto Samper, former Secretary General of the Union of South American Nations (UNASUR) Ernesto Samper has advised the political shareholders in Venezuela to resume talks. In his opinion, it is the only way to solve the current state of affairs in Venezuela. “Violence leads nowhere,” he warned.  “Dead people are neither from the opposition nor from the government, they are simply Venezuelans, victims of violence; it is time to stop,” added the mediator in the government-opposition talks commenced last year in an effort to settle the standoff in Venezuela. (El Universal, http://www.eluniversal.com/noticias/daily-news/samper-casualties-are-just-venezuelans_651654)

 

Costa Rica seeks political dialogue and democratic solution to Venezuelan crisis

Costa Rica’s President Luis Guillermo Solís says “the only way out that one should expect is political”, and a “self-coup would be a tragedy” and could be the “prelude to a civil war”. Costa Rica recently called back its Ambassador to Venezuela for consultations. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/internacional/costa-rica-pide-un-dialogo-politico-y-una-salida-democratica-ante-la-crisis-de-venezuela; El Universal, http://www.eluniversal.com/noticias/politica/costa-rica-pide-dialogo-venezuela-salida-democratica-crisis_651656; http://www.eluniversal.com/noticias/politica/costa-rica-llama-consultas-representante-diplomatica-venezuela_651228)

 

CARICOM urged to send fact finding mission to Venezuela

Caribbean Community (CARICOM) leaders have been urged to send a fact-finding mission to Venezuela to make an informed analysis of the situation in that country. Saint Lucia’s External Affairs Minister, Sarah Flood-Beaubrun, said last month that there is legitimate concern about the situation in Venezuela both in terms of loss of life, human rights and the hardships that the people there endure. (Saint Lucia Times: https://stluciatimes.com/2017/05/08/caricom-urged-send-fact-finding-mission-venezuela)

 

Uruguayan legislators seek investigation of Mujica era deals with Venezuela

Two legislators from Uruguay’s National Party and an independent member of the nation’s congress, have brought criminal charges over irregular business transactions between Uruguay and Venezuela during the government of President Jose Mujica (2010-2015). They charge the use of private middlemen that were arbitrarily appointed to carry out business in several fields, through the National Development Fund. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/internacional/diputados-presentan-denuncia-penal-por-negocios-entre-uruguay-y-venezuela; El Universal, http://www.eluniversal.com/noticias/venezuela/denuncian-gobierno-jose-mujica-por-negocios-con-venezuela_651224)

 

Dudamel dedicates concert to a slain student in Venezuela

Gustavo Dudamel, the Venezuelan music director of the Los Angeles Philharmonic, walked on stage, looked at the orchestra for a moment and then turned to the audience. He mentioned the killing, two days earlier in an antigovernment protest, of a 17-year-old violist in Venezuela’s El Sistema music education program. Dudamel said the violence in Venezuela is unacceptable, and he dedicated the concert to the slain student and to all the victims of violence. “We play for all our children,” he concluded, “to build a better future for them with peace and love.” The audience rose to give him a standing ovation. A group in the orchestra benches behind the stage unfurled a large Venezuelan flag, and shouts of “viva Venezuela” came from the balcony. Dudamel then proceeded to conduct Schubert’s inconsequential first symphony — written when the composer was a 16-year-old student taking his cues (and stealing themes) from Beethoven — as though every measure mattered momentously. With ferocious attention to detail, and with plain ferocity, he revealed a teen’s potential for greatness. Dudamel’s rise to this occasion, at a time when he is being involuntarily drawn into Venezuela’s current turmoil, is a startling new chapter. After long being constrained by the Venezuelan government’s control of El Sistema, Dudamel has begun to speak out. Much of the violence he condemns is being perpetrated by pro-government forces. But many in Venezuela are not placated, calling Dudamel’s actions too little, too late. Some have gone so far as to accuse the conductor of being complicit in the violence, for not biting the autocratic hand that feeds the hundreds of thousands of El Sistema students for whom Dudamel feels responsibility. (The Los Angeles Times: http://www.latimes.com/entertainment/arts/la-et-cm-gustavo-dudamel-venezuela-schubert-20170507-story.html)

 

Maduro talks to cows during official ceremony

An official act meant to show how Venezuela is working to put an end to the severe food crisis in the country showed instead a side of President Nicolas Maduro that, while not new, doesn’t cease to amaze. In a video shot last week during a visit to an agricultural fair in Caracas, the 54-year-old former bus driver is seen talking to a group of cows … about politics. "I want representatives, leaders and producers of the farming sector to be members of the Constituent Assembly. Are you going to accompany me?" he asks, speaking directly to the animals. "Are you going to support me in the Constituent Assembly or do you want guarimba [a term used by the government to define opposition protests]?” "Do you want violence? Do you want death? Those of us who want peace and life go to the Constituent Assembly," he then says. The video has caused quite a stir in social media, where Maduro has been accused of not being right in the head. But Maduro's main aim may be to get people talking about something besides the five weeks of anti-government protests that have left 38 people dead, including protesters, government sympathizers, bystanders, and security forces. (Fox News: http://www.foxnews.com/world/2017/05/08/venezuelas-maduro-talks-to-cows-during-official-act-will-support-me.html)

 

Venezuela indigenous group flees crisis for Brazil

Around 400 indigenous Warao people from the Orinoco Delta in Venezuela have arrived in the Brazilian city of Manaus in the Amazon. The authorities have declared a social emergency to seek government funds to help with the influx. The Warao say they travelled around 2,000 km (1,250 miles) and are fleeing hunger and Venezuela's worsening economic and political crisis. (BBC News: http://www.bbc.com/news/world-latin-america-39852877)

 

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.

May 02, 2017

International Trade

Special container terminal inaugurated at La Guaira port, according to the local port authority. The inauguration ceremony was attended by President Nicolas Maduro, and Vargas state Governor. More in Spanish: (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=36285)

 

Logistics & Transport

Passenger transportation costs to rise

Erick Zuleta, President of the National Transport Federation, says the new wage increase decreed by President Nicolas Maduro will lead to new transportation costs: “The inflationary spiral will inevitably lead to another price adjustment in passenger transportation, because it cannot be borne”. He said transportation workers are going from bad to worse because the Transportation Ministry does nothing for them: “They simply say that they will give and end up doing nothing”. More in Spanish: (Noticiero Venevision, http://www.noticierovenevision.net/noticias/economia/transportistas-aseguran-que-aumento-salarial-generara-otro-ajuste-de-pasaje; El Mundo, http://www.elmundo.com.ve/noticias/economia/gremios/transportistas-afirman-que-aumento-salarial-genera.aspx)

 

Oil & Energy

Venezuela oil price tumbles

The price Venezuela receives for its mix of medium and heavy oil fell as supply increases rose in the U.S. According to figures released by the Ministry of Petroleum and Mining, the average price of Venezuelan crude sold by Petroleos de Venezuela S.A. (PDVSA) during the week ending April 28 fell to US$ 42.46, down US$ 2.35 from the previous week's US$ 44.81. According to Venezuelan government figures, the average price in 2017 for Venezuela's mix of heavy and medium crude has fallen to US$ 44.60. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2435490&CategoryId=10717)

 

Venezuela resumes light oil shipments to Cuba

Venezuela resumed exports of light crude to its political ally Cuba in March after an eight-month pause that led to a production halt at the island's jointly-owned Cienfuegos refinery, according to internal data from state-run PDVSA. PDVSA last year minimized exports of its lighter grade crudes, especially to the Caribbean, which since then have been used mainly to dilute its extra-heavy oil and convert it into exportable crude. The cut halted nearly all operations at the middle of last year at the dated Cienfuegos refinery, a Soviet-era facility configured to run Russian crude, and later upgraded by PDVSA to convert up to 65,000 barrels per day (bpd) of Venezuelan oil into refined products for Cuba's domestic market and exports. Even though PDVSA has in recent years increased shipments of refined products to Cuba to partially compensate for falling crude supply, gasoline shortages in both countries since March have revealed that fuel output has failed to meet demand. (Reuters, http://www.reuters.com/article/us-venezuela-cuba-oil-idUSKBN17X1Y9)

 

U.S. Supreme Court sides with Venezuela over oil rigs claim

The U.S. Supreme Court on Monday tossed out a lower court's ruling that had allowed an American oil drilling company to sue Venezuela over the seizure of 11 drilling rigs in 2010 but allowed the business another chance to press its claims. Siding with Venezuela, the justices ruled 8-0 that a lower court that had given the go-ahead for the suit must reconsider whether claims made by Oklahoma-based HELMERICH & PAYNE International Drilling Company can proceed. Writing for the court, Justice Stephen Breyer said the U.S. Court of Appeals for the District of Columbia Circuit in 2015 used the wrong standard in denying Venezuela immunity from the lawsuit. HELMERICH & PAYNE shares fell about 2% in midday trading after the ruling. (Reuters, http://www.reuters.com/article/usa-court-venezuela-idUSL1N1I31AD; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2435561&CategoryId=10717)

 

Economy & Finance

Maduro orders 60% hike of minimum wage ... in a 500% inflation

President Nicolas Maduro announced Sunday a 60% increase in the minimum monthly wage, from 40,638 bolivars to 65,021 bolivars — the latter value roughly US$ 90 at the current official exchange of 717 bolivars per dollar. It was the third pay increase the socialist leader has ordered this year and the 15th since he became president in 2013. Maduro also handed out hundreds of free homes amid his efforts to counter a strengthening protest movement seeking his removal. Even a 60% pay rise may come as scant consolation to millions of the country's workers, whose buying power has been damaged by a stricken currency. Critics say the move will merely fuel the country's runaway inflation rate, which is one of the world's highest inflation rates, and could hit 720% this year according to the International Monetary Fund. The leftist government has not published inflation data for more than a year but according to Venezuelan consultancy ECOANALITICA, inflation was 525% last year. In addition, President Maduro also said he had decided to raise the mandatory food subsidy from 108,000 to 135,000 bolivars, "that is, workers will have a minimum legal income of 200,000 bolivars," or about US$ 278 per month. Minutes after the announcement, the president of the National Commerce and Services Council of Venezuela, Cipriana Ramos, said she was not "surprised" at the increase but that it would "hit companies ... much harder." In remarks to private Union Radio, Ramos said that "putting up with a pay increase at this time of crisis the country is experiencing is impossible." (BBC News: http://www.bbc.com/news/world-latin-america-39768671; FOX News:  http://www.foxnews.com/world/2017/05/01/venezuelas-president-orders-60-hike-minimum-wage-in-500-inflation.html; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2435560&CategoryId=10718)

 

….and calls for blanket freeze on all prices

On Monday, Maduro said that all prices should be frozen as the country fights an “economic war” he blames on conspirators in Venezuela and abroad. He said he had ordered cabinet members to analyze nationwide price freezes. Current price controls are seen as a root cause of shortages as they dis-incentivize businesses from producing amid steep inflation, so a more widely applied freeze could further hit supplies. Despite having the largest proven oil reserves in the world, Venezuela is fast running out of cash, and its people have struggled for years with food and medical shortages, coupled with skyrocketing prices. (CNN: http://www.cnn.com/2017/05/01/americas/venezuela-maduro-new-constitution/; Bloomberg: https://www.bloomberg.com/politics/articles/2017-05-01/venezuela-braces-for-dueling-marches-in-strife-ridden-caracas; Reuters: http://lta.reuters.com/article/domesticNews/idLTAKBN17Y03H-OUSLD)

 

Venezuela's worst economic crisis: What went wrong?

Country sitting on world's biggest oil reserves is now region's poorest performer in terms of GDP growth per capita. Venezuela is experiencing the worst economic crisis in its history, with an inflation rate of over 400% and a volatile exchange rate. The government is also running out of cash. According to the Central Bank of Venezuela, the country has US$ 10.4bn in foreign reserves left, and it is estimated to have a debt of US$ 7.2bn. According to International Monetary Fund (IMF) figures, in 2016, the country had a negative growth rate of minus 8%, an inflation rate of 481% and an unemployment rate of 17% that is expected to climb to 20% this year. Currency controls have limited imports, putting a strain on supply. The government controls the price of basic goods, this has led to a black market that has a strong influence on prices too. The most recent report by CENDAS (Center for Documentation and Social Analysis) indicates that in March 2017 a family of five needed to collect 1.06 million bolivars to pay for the basic basket of goods for one month, that includes food and hygiene items, as well as spending on housing, education, health and basic services. During the rule of Hugo Chavez, the price of key items, food and medicines were reduced. Products became more affordable but they were below the cost of production. Private companies were expropriated, and to stop people from changing the national currency into dollars, Chavez restricted the access to dollars and fixed the rate. When it became unprofitable for Venezuelan companies to continue producing their own products, the government decided to import them from abroad, using oil money. But oil prices have been falling since 2014, which has left the economic system unable to maintain the system of subsidies and price controls that functioned during the oil boom years. The inability to pay for imports with bolivars coupled with the decline in oil revenues has led to a shortage of goods. The state has tried to ration food and set their prices, but the consequence is that products have disappeared from shops and ended up in the black market, overpriced. Venezuela has established different exchange rate systems for its national currency, the bolivar. One rate was established for what the government determines to be "essential goods", other for "non-essential goods" and another one for people. The two primary rates overvalue the bolivar, but the black market values the bolivar at near worthless. Given the long litany of woes, some analysts think there are two options before Maduro's government: to default on its debt or to stop importing food. (Al Jazeera: http://www.aljazeera.com/indepth/features/2017/05/venezuela-worst-economic-crisis-wrong-170501063130120.html)

 

Venezuela is collapsing into socialist induced chaos

The Venezuelan regime’s decision to unleash paramilitary groups on opposition protestors has revealed to the world yet again the moral bankruptcy of socialism. Chávez was in power from February 1999 until his death from cancer in March 2013. He had the good fortune of oil prices climbing up to $147 a barrel and could lavish billions on the country’s poor, creating a gargantuan dependency culture. He also quintupled the national debt. The country’s GDP collapsed by 19%, imports are down 50%, and inflation is running at more than 700%. Chávez forcefully nationalized more than 1,150 companies, including the oil industry, public utilities, and many banks. Their productivity has duly collapsed. Today, nationalization is a dirty word in Venezuela and the people are clamoring for these industries to be privatized again. The truth is that chavismo was as solid as a sand castle and his legacy proved to be calamitous once oil prices fell. At the heart of Venezuela’s economic chaos lies market distortions. Socialism’s abject failure in Venezuela should be a salutary lesson to all wide-eyed leftists around the world. The regime is hunkering down. Its leaders do not want to give up power for fear of reprisals. The biggest problem with all socialist systems is the broad definition of human rights. The hard left believe that these should include a right to housing, education and healthcare. But they are prepared to allow these rights to trump others, including the freedom of expression. Socialism’s abject failure in Venezuela should be a salutary lesson to all wide-eyed leftists around the world. The discredited ideology of socialism must be consigned to the dustbin of history once and for all. (The Telegraph: http://www.telegraph.co.uk/news/2017/05/01/venezuela-collapsing-socialist-induced-chaos-yet-remains-corbynista/)

 

Politics and International Affairs

Protests to continue as opposition rejects Maduro’s call for “constituent assembly”

President Nicolas Maduro has called for a popular assembly to write a new constitution after hundreds of thousands took to the streets again to call for his ouster. He announced on Monday the creation of a new popular assembly with the ability to re-write the constitution in a fresh attempt to consolidate his hold on the nation and defuse a bitter and escalating political conflict. Maduro triggered an article of the constitution that creates a super-body known as a "constituent assembly." It can dissolve public powers and call general elections. "I convoke the original constituent power to achieve the peace needed by the Republic, defeat the fascist coup, and let the sovereign people impose peace, harmony and true national dialogue," Maduro told red-shirted supporters. It also would allow for the reshaping of the current legislative body, as well as redefine the President's executive powers. "We must modify this state, especially the rotten National Assembly that's currently there," Maduro said. The body is controlled by the opposition. He accused the opposition of being unwilling to negotiate. “They want peace, dialogue? Constituent assembly!” Maduro said, telling supporters that the time had come to defeat their opponents for good. “Today, it’s all clear to me.” Maduro also said that the new body would contain "some 500 constituents" who would represent all sectors of the Venezuelan society, including workers, youth, women, peasants, those who receive pensions, and indigenous people, among others. He said some 200-250 would be elected via direct vote. He emphasized that those elected to the body would be chosen by the people -- and “not of political parties and elites, but of workers and communes”. It's not clear if the opposition will have a seat at the rewriting party.  Maduro said before thousands of supporters who rallied in downtown Caracas for May Day celebrations. “I activate the assembly for the people to take power.” He didn’t immediately give details about how the assembly would be convened, its duration or its members. Under the existing constitution, "the people of Venezuela" can "convene a constituent assembly with the aim of transforming the state, creating a new legal framework and writing a new constitution". Maduro said that as president he was invoking that power in the name of the Venezuelan people, but legal experts say his decree must be approved by a national referendum. Maduro made his announcement while speaking to a large crowd of government supporters who had gathered.  In central Caracas, where the socialists have traditionally held their rallies, thousands of government supporters cheered a huge inflatable doll of Chavez and railed against opposition "terrorists." The government laid on hundreds of buses for its backers but closed subway stations in the capital and set up roadblocks, impeding opposition mobilization. Some government workers acknowledged they had been coerced into attending Monday's pro-Maduro rally. Appearing on state television later in the evening, Maduro signed the formal convocation decree and said he had designated a commission for a “wide dialogue with all of Venezuela.” Just one day before, on Sunday, Maduro said he expected the postponed vote for governors of Venezuela's 23 states - originally slated for 2016 -  to be held this year. During his weekly TV program, he said gubernatorial elections would happen later this year. "I am anxious for an electoral process to be called," he told supporters on the live show, saying the election board, or CNE, first had to finish legalizing political parties. Faced with almost daily protests and increasing criticism from regional grouping the Organization of American States and the European Parliament, President Maduro probably felt he needed to make a move. Not willing to "give in" to the opposition's demand for early presidential elections, he chose to announce the creation of a constituent assembly. He will argue that the constituent assembly hands power back to the people in the form of its 500 members. While the call for a constitutional assembly might fall flat at home, it might help deflect some of the international pressure that Caracas is under. In recent days, regional governments and the broader international community have been demanding a solution to the crisis.

 

But even before the plan had solidified, the opposition was rejecting it as another distraction. They fear Maduro will stuff the assembly with supporters and manipulate the elected seats by giving extra weight to pro-government workers and unions. They said it was another attempt to sideline the current opposition-led National Assembly and potentially avoid elections amid a bruising recession and protests that have led to 29 deaths in the last month. Opposition leaders are seeking to maintain momentum that brought over a million supporters into the streets in marches last month. They have their own demands: the designation of an impartial electoral board, early presidential elections, an immediate date for overdue regional elections, government authorization to accept humanitarian aid shipments of food and medicine, respect for the autonomy of the opposition-controlled National Assembly, the release of all political prisoners and the disarmament of pro-government groups known as “colectivos”. Opposition leaders immediately charged that Maduro was seeking to further erode Venezuela's constitutional order, and called this move a "self-coup." Former Presidential candidate and Miranda state Governor Henrique Capriles asked people not to fall for the ploy. "Facing this constitutional fraud that has just been announced by the dictator, the people should stay on the street and reject this madness," he said. Julio Borges, leader of the National Assembly, echoed Capriles' statement, calling it a coup against the Constitution and democracy. He called it a fraud. "What has happened today, and I say without exaggerating or trying to be dramatic, is the greatest coup in the history of Venezuela. It's Nicolas Maduro dissolving democracy and dissolving our republic. Faced with this, the Democratic Unity Party and the members of the National Assembly call on the Venezuelan people to rebel and refuse to accept this coup." He has added that the move is an attempt to “fight fire with gasoline.” On Monday evening, he called on Venezuelans to rebel, potentially portending bigger protests. "This is a scam to deceive the Venezuelan people with a mechanism that is nothing more than a coup," Borges said, urging Venezuelans to bang pots and pans in protest and block streets early on Tuesday morning and hold another march on Wednesday. He added: “Don’t think this is an action of a strong government or president. Nicolas Maduro is not going forward, but toward the cliff.”

 

Earlier in the day, the intensifying protest movement entered a second month amid clashes between police and demonstrators. Tens of thousands of anti-government protesters rallied from 26 points across Caracas on a hot, rainy day, in an effort was promoted on social media with the hashtag “the people rebel against the coup.” The protests tried to march on government buildings in downtown Caracas, but police blocked them. Officers launched tear gas and chased people away from main thoroughfares as the peaceful march turned into chaos. Opposition lawmaker Jose Olivares was hit in the head with a tear gas canister and was led away with blood streaming down his face. Some demonstrators threw stones and gasoline bombs and dragged trash into the streets to make barricades. Hundreds of thousands of people filled central roads and highways of the city. People of all ages and class backgrounds are participating in the protests. Protesters have begun showing up for demonstrations with medical masks and bandanas to protect from the clouds of tear gas that police often deploy without warning. Gas masks are hard to find in the shortage-plagued economy, and the government is limiting people bringing them in from abroad. Authorities set up checkpoints that snarled traffic on main highways and closed the city's subway system. National Guard troops shot teargas and water cannons in a district of west Caracas towards hundreds of opposition protesters standing around waiting to march, and at youths hurling stones and petrol bombs after opposition marches were blocked. Elsewhere, the National Guard blocked marchers pouring towards a major highway in front of the Avila mountain which towers over Caracas' northern edge. Opposition supporters cheered as youths ran to the front, carrying makeshift shields made from trash bin lids, wood and even a satellite dish. Some, wearing motorbike helmets, swimming goggles or bandanas over their mouths, threw stones and petrol bombs at the security line, with a protester yelling, "No one turn back!" Others blocked roads in Caracas' Chacao area with branches and fences. Monday marked the one month mark since the opposition began taking to the streets to protest the socialist administration amid increasingly violent clashes. Protest demonstrations were also held in Nueva Esparta, Anzoátegui, Zulia, Carabobo, Táchira, Mérida, Trujillo, Monagas, Aragua, Lara, Sucre, Falcón, Bolívar, Apure, and Guárico states. The largest movements were in the central state of Carabobo and the border states of Zulia and Táchira, where thousands surged upon judiciary offices with no incidents reported. The last 30 days have left at least 29 dead, hundreds injured, thousands in detention. And while the demonstrations have paralyzed large swaths of an already beleaguered country, neither side appears ready to back down. The opposition has said it will stay in the streets until all its demands are met. Among them are: general elections, the release of political prisoners and the firing of Supreme Court justices who tried to dissolve the opposition-controlled legislature. Maduro, for his part, has made it clear that he's not stepping down — or moving up the presidential election, which is scheduled for late 2018. If anything, Maduro's announcement has further incensed opposition leaders, who called for fresh protests. As Maduro spoke on nationwide media on Monday night, opposition supporters started banging empty pots and pans from their windows. The opposition called on its supporters to join a "mega protest" on Wednesday to show their disapproval. (Reuters, http://www.reuters.com/article/us-venezuela-politics-vote-idUSKBN17X2EC; http://www.reuters.com/article/us-venezuela-politics-idUSKBN17X203; http://www.reuters.com/article/us-venezuela-politics-idUSKBN17W0R1; USA TODAY: https://www.usatoday.com/story/news/world/2017/05/01/maduro-citizens-congress/101175468/; The Miami Herald: http://www.miamiherald.com/news/nation-world/world/americas/venezuela/article147953684.html; Bloomberg: https://www.bloomberg.com/politics/articles/2017-05-01/venezuela-braces-for-dueling-marches-in-strife-ridden-caracas; BBC News: http://www.bbc.com/news/world-latin-america-39775092; CNN: http://www.cnn.com/2017/05/01/americas/venezuela-maduro-new-constitution/; and more in Spanish: Noticiero Venevision, http://www.noticierovenevision.net/noticias/politica/opositores-marcharon-en-15-estados-del-pais-para-pedir-respeto-a-constitucion)

 

Pope calls for Venezuelan negotiated solution to violence

Pope Francis appealed to leaders of Venezuela’s government and society Sunday to avoid more violence after four weeks of political turmoil that has produced a mounting number of dead, injured and arrests. Francis told faithful gathered in St. Peter’s Square that, united in sorrow with the families of victims, he was making a heartfelt appeal to “the government and all the components of the Venezuelan society so that every further form of violence is avoided, human rights are respected and negotiated solutions are sought.” The comments came a day after Francis, the first Latin American pope, expressed frustration that Vatican-sponsored negotiations to resolve Venezuela’s political impasse had not succeeded, in part because of what he cited as divisions within the opposition. “All that can be done for Venezuela must be done with the needed guarantees, otherwise we are just making fun of each other and the thing won’t work,” he told reporters traveling with him from Egypt. He said any negotiations under the Holy See’s auspices would require “very clear conditions.” Venezuela’s opposition broke off the talks in December, saying the government had failed to meet a litany of demands that included release of political prisoners and setting a new date for cancelled gubernatorial elections. The collapse of those talks has made it harder for the two sides to re-engage during the latest unrest, with the opposition galvanizing an outpouring of public anger with socialist President Nicolas Maduro, who they blame for widespread food shortages and triple-digit inflation. In a public letter to Francis on Sunday, the opposition dismissed the notion that there are divisions within its ranks and outlined its key demands that have been behind the almost daily protests that have already claimed 29 deaths. “The only dialogue acceptable in Venezuela today is the dialogue of voting, which is the only way to overcome the crisis and re-establish Venezuela’s kidnapped democracy,” the Democratic Unity alliance said. The governments of Argentina, Brazil, Chile, Colombia, Costa Rica, Peru, Paraguay and Uruguay expressed support for the Pontiff’s plea and said that “very clear conditions” must exist for “a negotiated solution to the political, economic and humanitarian crisis” here. (The Washington Post: https://www.washingtonpost.com/national/religion/pope-to-venezuela-avoid-more-violence-respect-human-rights/2017/04/30/e260d786-2e1a-11e7-a335-fa0ae1940305_story.html; Bloomberg, https://www.bloomberg.com/politics/articles/2017-04-30/pope-calls-for-venezuelan-negotiated-solution-to-curb-violence; Reuters, http://www.reuters.com/article/us-venezuela-politics-pope-idUSKBN17W0DO; El Universal, http://www.eluniversal.com/noticias/daily-news/pope-asks-for-settlement-venezuela_650643; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2435535&CategoryId=10717; and more in Spanish: Noticiero Venevision, http://www.noticierovenevision.net/noticias/internacional/ocho-gobiernos-se-suman-a-peticion-del-papa-sobre-venezuela; El Universal, http://www.eluniversal.com/noticias/politica/ocho-paises-respaldan-las-declaraciones-del-vaticano-sobre-venezuela_650636)

 

Withdrawal from the OAS held “null”; US says final decision up to Maduro’s successor

Congressman Luis Florido, Chairman of the Foreign Affairs Committee at Venezuela’s National Assembly, says the Maduro regime’s decision to withdraw from the Organization of American States (OAS) is “null”. “For Venezuela to withdraw from the OAS, it must simply change Article 23 in its Constitution, and the way to do so is through reform or a national constituent assembly, so the request made yesterday by Foreign Minister Delcy Rodríguez is absolutely null”, he said. US State Department spokesman Mark Toner warned that the last word on Venezuela’s withdrawal will be up to Maduro’s successor, and that the United States would like the country to remain within the organization, but “only” if it meets democratic “standards”. More in Spanish: (Noticiero Venevision, http://www.noticierovenevision.net/noticias/politica/luis-florido-aseguro-que-la-solicitud-de-retirar-a-venezuela-de-la-oea-es-nula; http://www.noticierovenevision.net/noticias/internacional/eeuu-dice-que-sucesor-de-maduro-tendra-la-ultima-palabra-sobre-salida-de-oea; El Universal, http://www.eluniversal.com/noticias/politica/asamblea-nacional-rechaza-salida-venezuela-oea_650201)

 

European Parliament urges Maduro regime to hold elections “as soon as possible”

The European Parliament has urged the Maduro regime in Venezuela to schedule free and transparent elections “as soon as possible”. The resolution passed with 450 votes, with 35 nays and 100 abstentions. It also condemned “the continued violation of Constitutional order in Venezuela”, urged the regime to respect the balance of powers and free all political prisoners. More in Spanish: (Noticiero Venevision, http://www.noticierovenevision.net/noticias/internacional/eurocamara-insto-al-gobierno-venezolano-a-realizar-elecciones-lo-antes-posible)

 

UN High Commissioner decries actions by security forces in protests

Zeid Ra’ad al Hussein, UN High Commissioner for Human Rights, says the Maduro regime’s policy “of repressing dissident voices, will not resolve agitation” in the streets or the reasons for protesting. He added that the most alarming part is the increase of violence, action by armed pro-regime groups and the extended lack of trust in the government or the judiciary. He said the threats of withdrawal from the Organization of American State (OAS) are not “a strategy to recover stability and peace”. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/internacional/onu-rechaza-actuacion-de-cuerpo-de-seguridad-venezolanos-en-protestas-en-el-pais)

 

Noriega urges additional international sanctions on Venezuela

In an op-ed article, former OAS Ambassador Roger Noriega, writes: “Maduro is weaker than ever. One reason is that unrest has spread to the poorest neighborhoods that were once the stronghold of Hugo Chavez. The most ferocious street fights have been in poor areas. In numerous cases demonstrators have overwhelmed security forces and chased them through the streets. Opposition leaders are hardly in a position to control desperate people with little to lose. After each day of bloody repression, more Venezuelans will demand that Maduro relinquish power. The OAS should collect evidence of human rights abuses for referral to the International Criminal Court; hold regime leaders responsible for its vast inventory of weapons of war, and call on countries to cease the sale of guns, ammunition, and crowd control tools used so wantonly by Venezuelan authorities. The OAS also should urge member states to sanction individual human rights abusers or to offer exile to Maduro and his inner circle. US National Security Advisor H.R. McMaster personally urged OAS members to confront the regime in Caracas. U.S. officials can further influence events by targeting additional sanctions against regime leader Diosdado Cabello, Minister of Interior Nestor Reverol, and U.N. Ambassador Rafael Ramirez—just a handful of the corrupt officials against whom U.S. agencies have assembled reams of evidence and eyewitness testimony. The US$ 30 million a day garnered from U.S. oil purchases represents about three-fourths of Venezuela's export revenue. If the U.S. suspended those imports, the Maduro regime would not have the wherewithal to fund its police state.” (The Washington Examiner: http://www.washingtonexaminer.com/what-the-trump-administration-can-do-in-venezuela-to-hasten-maduros-demise/article/2621100

 

Eleven ELN members captured in Venezuela

During a joint operation, the Venezuelan and Colombian armies captured 11 presumed members of the National Liberation Army (ELN) in the Venezuelan state of Apure, on the Colombia-Venezuela border, official sources reported on Sunday.  “A dwelling where this criminal network operated was located. Ten pistols, two shotguns, four rifles, two sub-machine guns, 355 cartridges of different calipers and almost two million Colombian pesos (some more than USD 500) were found inside,” related the army in a press release, DPA cited. (El Universal, http://www.eluniversal.com/noticias/daily-news/eleven-eln-members-captured-venezuela_650646)

 

Colombia urged to reinforce assistance to Venezuelan immigrants

Authorities of La Guajira, a Colombian department that shares about 240 kilometers of border with Venezuela, requested the Colombian government additional measures to “give social and economic support to the inflow of fellowmen and Venezuelans as a result of the crisis that affects the neighboring country.” The acting governor of the Colombian department of La Guajira, Weildler Guerra, reported that the Colombian government has adopted humanitarian aid measures for Venezuelans. For his part, Bienvenido Mejía, mayor of Dibulla municipality, related that in the streets of Riohacha, the capital city of La Guajira, Venezuelans can be seen day by day, trying to find a job. (El Universal, http://www.eluniversal.com/noticias/daily-news/colombia-urged-reinforce-assistance-venezuelan-immigrants_650645)

 

Venezuelans entering Colombia must get migrant card

Venezuelans who regularly cross into Colombia to work, study or shop must apply for a special migratory card to ease their passage, as per the Colombian government. The cards will take the place of passports and allow entry to the Colombian provinces of La Guajira, Norte de Santander, Arauca, Vichada and Guania for residents of Venezuelan border areas, but not into the rest of Colombia, immigration authority head Christian Kruger said. Thousands of Venezuelans cross the border each day to attend school, work and buy food and medicines that are scarce in the socialist country. Some 40,000 Venezuelans reside legally in Colombia. The rule, which took effect on Monday, comes amid tension between the neighbors, which have often been at loggerheads. The Colombian foreign ministry said this week it was examining a refuge request from three Venezuelan soldiers. It is unclear when or how they arrived in Colombia, but Venezuelan authorities have said they deserted and fled their country in March. (Colombia Reports: http://colombiareports.com/venezuelans-entering-colombia-must-get-migrant-card/)

 

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.