December 6th, 2010

Economics, Trade & Business

Venezuela, Colombia develop new commercial agreement

The governments of Venezuela and Colombia are negotiating to boost a new commercial accord upon the basis of complementariness and joint economic development. The information was given by Venezuelan Foreign Minister Nicolas Maduro to state-run television VTV at the end of the 20th Ibero-American Summit, which took place in Mar del Plata, Argentina. According to the press office, Maduro detailed part of the bilateral meeting held with his Colombian counterpart Maria Angela Holguin about the new economic accord. According to him, they are structuring joint teams to broaden specific cultivation projects and to develop the national coffee production plan, with Colombian investment and Venezuelan experience. (AVN, 12-06-2010; http://www.avn.info.ve/node/32439)

China, Venezuela pledge to boost cooperation

China and Venezuela Friday pledged to boost bilateral relations and cooperation. The pledge came out of a meeting between Chinese Vice Premier Li Keqiang and a Venezuelan government delegation, which is in China for the ninth meeting of the China-Venezuela Senior Mixed Committee. Hailing the fast growth of China-Venezuela relations in recent years, Li said the two sides have enjoyed fruitful cooperation in areas including energy, agriculture, culture and infrastructure. (China Economic Net, 12-04-2010; http://en.ce.cn/National/Politics/201012/04/t20101204_22021861.shtml)

Transparencia Venezuela says government to increase IVA

Transparencia Venezuela said that the draft 2011 budget estimated revenues with the largest non-oil tax burden in recent years, reaching spending of 57.9%. It was 53.1% in 2010. They estimate there will be an IVA (Value Added Tax) increase from 12% to 15%. (El Nacional, 12-06-2010; http://www.el-nacional.com/www/site/p_contenido.php)

Inflation, inflation! The big headache

Inflation has become the government’s "headache" because it has not been able to solve it so far, and neither seems to have a solution for the near future, meaning 2011 and 2012. This impacts with greater force and depth those who earn less and, of course, purchases of goods and services, including food. This Government has recorded an average inflation of about 21%, which may not be alarming, but, as we said, erodes daily wages, with the aggravating circumstance that the average results from an irreversible increase which, instead of showing a downward trend, is rising. (Tal Cual, 12-06-2010; www.talcualdigital.com/index.html)

New CADIVI rule requires updated data from companies

Companies registered in the Foreign Exchange Administration Commission (CADIVI) must perform a data update between 3 January and 3 March next year under a new order released today by the agency in Official Gazette No. 39,566. Order No. 106, repealing No. 010, "regulates the requirements and procedures to be followed by applicants for registration or users to update data in the Members of the Foreign Exchange System Administration Registry (RUSADIR)", the document says. (El Mundo, 12-06-2010; www.elmundo.com.ve/Default.aspx?id_portal=1&id_page=26&Id_Noticia=11169)

Capitalism and socialism coexist

Economist Ronald Balza says that while Carlos Andres Perez turned policy towards a social market economy without anesthesia, Chavez took from 1999 to 2005 to admit he is a socialist. His aspiration of a socialist system has been implemented gradually and in some cases, two systems, capitalism and socialism coexist as needed. In the meantime, the legal scaffolding to generate the social fabric in which communes and other structures of the people can be created is being put into place. (El Mundo, 12-06-2010; www.elmundo.com.ve/Default.aspx?id_portal=1&id_page=19&Id_Noticia=39319)

Former government official repeats claim that BBVA is for sale

A former top official in Venezuela's government Sunday repeated his claim that the local unit of Spanish bank Banco Bilbao Vizcaya Argentaria S.A. is being offered up for sale, leading the bank to once again deny it. Jose Vicente Rangel, who was President Hugo Chavez vice president until 2007 and now hosts a Sunday talk show, said a week ago that BBVA's Venezuela unit, BBVA Banco Provincial, was up for sale at a price tag of about $2 billion. BBVA quickly denied it and called Rangel's comments "irresponsible." On Sunday, Rangel stood by his initial comments and said the source who gave him the information is reliable. (Fox Business, 12-05-2010; www.foxbusiness.com/markets/2010/12/05/venezuela-government-official-repeats-claim-bbva-unit-sale/)

“Temporary occupation” of Alvenca

On Thursday, after an inspection by INDEPABIS along with regional authorities, it was decided to “temporarily occupy” Aluminios de Venezuela C.A. (Alvenca), which processes aluminum frames and is located in La Victoria Industrial Zone in Aragua state. Its 101 workers had paralyzed the company 12 days ago to protest the discussion of labor benefits and alleged administrative and operational irregularities. (Veneconomy, 12-04-2010; www.veneconomy.com/site/index.asp?ids=44&idt=24166&idc=3)

Politics

Venezuela moves flood-hit families into resort hotels

Venezuelan security forces have started housing families displaced by floods in tourist hotel rooms following an order by President Hugo Chavez to make use of vacant accommodation, local media said on Monday. Heavy rains have killed at least 32 people and forced more than 100,000 from their homes in recent days. Emergencies have been declared in various states, and the country's Caribbean coast has been particularly hard hit by mudslides. In a televised broadcast from one flooded area on Sunday, the president told the National Guard to begin moving families into vacant hotel accommodation. (Reuters, 12-06-2010; http://www.reuters.com/article/idUSTRE6B54IS20101206)

Venezuelans elect 11 mayors, 2 state governors

An opposition candidate won the mayorship of Venezuela's second-largest city of Maracaibo Sunday, claiming the big prize in regional elections seen as a test of President Hugo Chavez's popularity, according to initial results.

Venezuelans also elected governors in two rural states that have traditionally favored pro-Chavez candidates and mayors in 10 municipalities besides Maracaibo. Candidates from Chavez's ruling party captured 7 of the 11 mayorships and one state, according to official results released by local election authorities. (Miami Herald, 12-05-2010; http://www.miamiherald.com/2010/12/05/1958375/venezuelans-to-elect-11-mayors.html)

Diplomatic frictions between US and Brazil due to Chávez

According to diplomatic cables leaked by the whistleblower website Wikileaks and published by the French newspaper Le Monde, US and Brazilian diplomats consider Venezuela to be a threat to the region, although they agreed that isolation was not the solution. They also said that Hugo Chávez is like the proverb: a barking dog doesn't bite. The US diplomatic cables reveal the different positions of the Brazilian politicians with regard to Venezuela's President Hugo Chávez. (El Universal, 12-06-2010; http://english.eluniversal.com/2010/12/06/en_pol_esp_diplomatic-frictions_06A4821213.shtml)

Paraguayan President urges politicians "not to equate Chávez with Venezuela"

President Fernando Lugo requested the country's political elite "not to equate" President Hugo Chávez with Venezuela. Lugo reiterated his support to Venezuela's entry into Mercosur. "Unfortunately this issue has become highly politicized and Venezuela has been compared with (President Hugo) Chávez," Lugo said in an interview published by the newspaper Tiempo Argentino. (El Universal, 12-06-2010; http://english.eluniversal.com/2010/12/06/en_pol_esp_paraguayan-president_06A4821651.shtml)

Transport & Logistics

One hundred and forty-three roads have been affected nationwide by the rains, informed Transport and Communication Minister Francisco Garcés. Sixty-four of those are the result of landslides, 12 are fallen bridges with partial damages and the rest is mostly roads that gave way and other problems. Yesterday evening, the La Ranita Bridge on the Morón-Coro road collapsed. (Veneconomy, 12-04-2010; www.veneconomy.com/site/index.asp?ids=44&idt=24165&idc=3)

Petroleum & Energy

PDVSA's refineries are a bargain for Germany

In the framework of his most recent tour through Asia, the Middle East and Europe, President Chávez, on 14 October announced on a visit to Moscow the signature of 30 bilateral agreements, the sale for an amount 1,600 million dollars to the Russian oil firm Rosneft of all PDVSA shares in the four refineries in the Ruhr Oel German company, whose crude processing capacity is of more than 216 000 barrels per day. Currently, PDVSA still has a 50 percent stake in the joint venture (Ruhr Oel), while the other half belongs to British Petroleum. The refineries are located in the cities of Gelsenkirschen, Neustadt, Karlsruhe and Schwedt. (Tal Cual, 12-06-2010; http://www.talcualdigital.com/index.html)

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.

December 2nd

Economics, Trade & Business

Venezuela to Liquidate Banco Federal, Official Gazette Says

Venezuela ordered the liquidation of Banco Federal CA and three related companies, according to a resolution published in the Official Gazette today. The country’s banking regulator took over Federal in June, citing liquidity concerns, and has been paying the bank’s customers through government-run banks and the deposit guarantee fund. Venezuela will sell off assets to pay bank employees and repay the deposit fund, Finance Minister Jorge Giordani said Aug. 10. (Bloomberg, 12-02-2010; http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=awSl7cqXE8bI)

Morgan Stanley fears high import demand

The U.S. firm Morgan Stanley is very clear in its expectations for next year: the supply of local inputs will be limited by the negative impact of expropriations. Given this scenario, the bank believes that the Venezuelan authorities will focus directly on stimulating consumption by importing more goods. "We expect imports of goods to remain the most important component of the demand for dollars," says the report of the firm. (El Universal, 12-02-2010; http://www.eluniversal.com/2010/12/02/eco_art_morgan-stanley-teme_2124673.shtml)

Politics

U.S. views Chavez in "axis of mischief"

Cuban intelligence services directly advise Venezuelan President Hugo Chavez in what a U.S. diplomat called the "Axis of Mischief," according to a State Department cable released by the WikiLeaks website. Other releases by the group revealed U.S. anxiety at Chavez's "coziness" with Iran, and concerns by Venezuelan Jews over what they see as government prejudice against them. Worries over Cuba's role in Venezuela, a top U.S. oil supplier, were shown in a 2006 diplomatic message. "Cuban intelligence has much to offer to Venezuela's anti-U.S. intelligence services," said the cable posted on wikileaks.org on Wednesday. (Reuters, 12-01-2010; http://www.reuters.com/article/idUSN0115084120101202)

Key political risks to watch in Venezuela

President Hugo Chavez's latest nationalization drive, political tensions in parliament, moves against the oil industry and the long tail-end of a recession are all risks to watch in Venezuela in the coming months. Chavez has nationalized a lot of businesses in Venezuela and he will nationalize more before the next presidential election in 2012. After 12 years in office, the former soldier shows no signs of slowing his drive to recreate Venezuela as a socialist state. (Reuters, 12-01-2010; http://www.reuters.com/article/idUSRISKVE20101201)

Diplomacy a la Chávez

Always a master of diplomacy, Venezuelan President Hugo Chávez has given some advice to the U.S. Secretary of State: "Hillary Clinton should resign, it's the least she can do with all of this spying and delinquency in the State Department." Using WikiLeaks' publication of 250,000 diplomatic cables as a springboard to attack the U.S. Secretary personally, Chávez said that "Mrs. Clinton thinks she is superior to Obama. Since she is white, she thinks she is superior to the black guy." In a classic act of Freudian displacement, Chávez called the United States a 'failed, illegal state, which threw respect for its allies overboard in order to further pursue its domination and abuses." Other State leaders and diplomats don't interpret the leaks to be quite as damning. Some world leaders have stated they understand the comments are part of the reality in conducting foreign relations. One of Secretary Clinton's counterparts even joked that Mrs. Clinton need not worry, saying: "You should see what we say about you." (What´s Next Venezuela, 12-01-2010; http://en.whatsnextvenezuela.com/)

Business organizations from Latin America, Spain and Portugal asked the Venezuelan government to stop its “attacks” on the private sector, which they claim is destroying the productive system and causing thousands of jobs to disappear. They also expressed their concern over the “verbal and physical violence in this country against the business institutions and their leaders.” (Veneconomy, 12-02-2010; http://www.veneconomy.com/site/index.asp?ids=44&idt=24135&idc=3)

The Latinobarómetro poll

Support for democracy in Latin America continues to edge up, as does backing for private enterprise. Two related things stand out in the results of this year’s poll, taken in September and early October. The first is Latin America’s fairly sunny mood. The second is the increasing stability of attitudes towards democracy and its core institutions. Support for democracy has risen noticeably in several countries on the Pacific rim of South America. (The Economist, 12-02-2010; http://www.economist.com/node/17627929?story_id=17627929)

Transport & Logistics

Continued restriction of sailings in Puerto Cabello

The departure of vessels of less than 150 units of gross tonnage (UAB) is still suspended in Puerto Cabello. Oscar Benito Ramírez Petit, head of the Port Authority, said the sea conditions have not improved. The decision to prolong restrictions was given on Wednesday afternoon, following a reappraisal of weather conditions. (Notitarde, 12-02-2010; http://www.notitarde.com/notitarde/plantillas/nota.aspx?idart=1194548&idcat=9849&tipo=2)

Petroleum & Energy

Venezuelan crude oil and byproduct exports to the US decline 12 percent

Venezuelan oil exports continue to drop in 2010 compared to last year. According to data provided by the US Energy Information Administration (EIA), the statistical arm of the Department of Energy, sales of Venezuelan crude oil and byproducts to the United States amounted to 1,008,000 barrels per day in September 2010. The figure represents a 12 percent fall in Venezuelan oil exports to the United States compared to the amount of oil and byproducts exported in September 2009, when they averaged 1,146,000 bpd. (El Universal, 12-02-2010; http://english.eluniversal.com/2010/12/02/en_eco_art_venezuelan-crude-oil_02A4805811.shtml)

Eni, Repsol in gas pricing talks with Venezuela

Eni and Repsol are negotiating a price with Venezuela's PDVSA for natural gas they plan to extract starting in 2013; a document seen by Reuters shows, in a sign the country is closer to producing offshore gas. Venezuela has vast reserves of natural gas in the Caribbean but development of the fields has been slow -- in part because of concerns among foreign firms about what they see as unfavorable prices offered by PDVSA for the gas extracted. (Reuters, 12-01-2010; http://www.reuters.com/article/idUSN0114283320101201)

China's Sinopec to have a stake in Orinoco Oil Belt

China's Sinopec will partner with the state-run oil company Petróleos de Venezuela (Pdvsa) to develop the Junín 1 and Junín 8 oil blocks at the Orinoco Oil Belt. The joint venture is aimed at producing 200,000 bpd in each block, Venezuela's Energy and Petroleum Minister Rafael Ramirez said. Pdvsa also signed a joint venture agreement to develop the 400,000 bpd Junín 4 block together with state-owned China National Petroleum Corporation (CNPC), Pdvsa said in a press release. (El Universal, 12-02-2010; http://english.eluniversal.com/2010/12/02/en_eco_esp_chinas-sinopec-to-h_02A4806455.shtml)

November 29th, 2010

Economics, Trade & Business

Manufacturers call for policies to boost production

The long-awaited recovery of the Venezuelan industrial sector will have to wait another year. Although the government rhetoric has supported the results of the measures adopted after the devaluation, both the economic data and the private sector say otherwise. Ricardo Menéndez, Minister of Science, Technology, and Intermediate Industries (MCTII), praised last week the results of the Bicentennial Fund, created in January in order to boost production. Menéndez said that the government has provided VEB 2.8 billion (USD 651.16 million) to some 300 companies that, in some cases, managed to grow by 40 percent and have created 9,700 jobs. (El Universal, 11-29-2010; http://english.eluniversal.com/2010/11/29/en_eco_art_manufacturers-call-f_29A4788731.shtml)

Joint government and private sector effort to bring down inflation

A partnership between the private sector and the government is needed to lower inflation, said the president of the Central Bank of Venezuela, Nelson Merentes, who considers prices as "a complex issue." "There must be many links between government and the private sector to stop the rise in prices," said Merentes during the forum "Returning to the path of growth for the year 2011.” On the country’s economic growth, the president reiterated that "although there has been a fall, there is a change of trend." (El Mundo, 11-29-2010; www.elmundo.com.ve/Default.aspx?id_portal=1&id_page=26&Id_Noticia=10979)

Seeking cash, Chavez looks to sell Citgo

President Hugo Chavez is promising to build new public housing complexes, boost social programs and renovate the long-neglected Caracas subway - and he needs money. The ambitious plans will squeeze Venezuela's coffers at a time when oil earnings have slipped and Chavez is sending his foreign allies generous amounts of crude on credit. So he has raised a possibility that once seemed remote: selling off Venezuela's U.S.-based oil company, Citgo Petroleum Corp. For Chavez, it's an idea driven both by hard-money realities and by politics. (The Washington Post, 11-28-2010; http://www.washingtonpost.com/wp-dyn/content/article/2010/11/28/AR2010112801646.html)

Nationalized briquette companies

After 18 months, the transformation of the iron briquette manufacturing companies into state enterprises has not materialized, although the three major companies (Comsigua, Venprecar and Orinoco Iron) have a "provisional socialist model." The companies are just "vegetating" which is the worst case scenario. They are totally paralyzed, their production ranges between 40% and 48% of what was usual in the good times, the marketing and management of their finances was confiscated, so there is no investment, maintenance is minimal and workers’ socio-economic achievements are "frozen." (Tal Cual, 11-29-2010; www.talcualdigital.com/ediciones/2010/11/29/default.asp)

Transition to socialism

When looking at indicators such as inflation, fall of wages, falling per capita GDP, the reduction of national production and hence greater reliance on the oil industry, one could simply conclude that the government is totally inefficient. But others agree that the country’s current situation is not just a product of bad management, but the result of government practices to move towards a political project called XXI century socialism. Since 2007, the government has been explicit about its intentions of changing the prevailing economic model in Venezuela, whose guidelines are expressed in the 2007-2013 Simon Bolivar National Project. It states the model will work with new sources of income generation, distribution and appropriation of surplus, and it will be composed primarily of Socialist Production Companies. (Tal Cual, 11-29-2010; http://www.talcualdigital.com/ediciones/2010/11/29/default.asp)

Commission of 1% on bond transactions

Bond transactions in the Foreign Currency Bond Trading System (SITME) will have to pay a commission of 1% from December 1. The Central Bank of Venezuela (BCV) published a resolution in the Official Gazette which establishes the maximum commissions, fees or surcharges for any bank transaction. It includes the collection of 1% for each operation with securities in foreign currency. (El Mundo, 11-29-2010; www.elmundo.com.ve/Default.aspx?id_portal=1&id_page=19&Id_Noticia=38572)

BBVA denies trying to sell Venezuela bank for $2 bn

Spanish finance group BBVA denied it was trying to sell its Venezuelan unit after a prominent former government official said on Sunday the subsidiary was on offer for $2 billion. "The board of directors of BBVA Banco Provincial emphatically denies the irresponsible and unconfirmed information transmitted today on the program "Jose Vicente Hoy," the bank said in a statement posted on its website. (Reuters, 11-28-2010; www.reuters.com/article/idUSN2817674520101128)

Politics

WikiLeaks: France leadership believes Venezuela's Chavez "crazy"

According to Top Secret US documents of US diplomatic meetings in Paris, Sarkozy's top Diplomatic Advisor Jean-David Levitte (formerly the French ambassador to the United States) "observed that Venezuelan President Hugo Chavez is "crazy" and said that even Brazil wasn't able to support him anymore. Unfortunately, Chavez is taking one of the richest countries in Latin America and turning it into another Zimbabwe." (Latin American Herald Tribune, 11-28-2010; http://www.laht.com/article.asp?ArticleId=380224&CategoryId=10717)

Chavez vows to expedite socialist initiative

President Hugo Chavez is vowing to accelerate his drive to turn Venezuela into a socialist state and urging his supporters to become "true revolutionaries" as they prepare for crucial political battles ahead. "Radicalize the revolution!" Chavez trumpeted in a newspaper column published on Sunday, calling on his allies to "create truly revolutionary groups; the vanguard of the people, a party and movement that guarantees the construction of socialism." (Miami Herald, 11-27-2010; http://www.miamiherald.com/2010/11/27/1945864/chavez-promotes-general-criticized.html)

Transport & Logistics

Lift restrictions on sea and airport

The Minister for Transport and Communications (MTC), Francisco Garces, reported Sunday that the restrictions which were implemented as security measures because of the rain have been lifted at sea and airports,. "They have lifted restrictions at sea and air, but there are restrictions to sailing of small boats, mostly because of bad weather, maintenance problems on the islands of Curacao and Aruba, but the rest of the weather has improved," said Garces from Tocuyo off the Coast in Falcon state. (Ultimas Noticias, 11-28-2010; www.ultimasnoticias.com.ve/Noticias/Levantan-restricciones-maritimas-y-aeroportuarias.aspx)

Petroleum & Energy

Venezuela's Cardón refinery stops operations amidst storm

Venezuela's 310,000-bpd Cardón refinery halted operations on Monday due to an electrical fault caused by a storm, a source of the state-run oil refinery said. The nearby 645,000-bpd Amuay refinery was also affected, and four of its units were shut down due to "rains and an electrical storm," a source said. (El Universal, 11-29-2010; http://english.eluniversal.com/2010/11/29/en_eco_esp_venezuelas-cardon-r_29A4790217.shtml)

Pdvsa still has debts with oil suppliers incurred in 2009

Given the difficult financial situation facing state-run oil company Petróleos de Venezuela (PDVSA) since 2009, Venezuela's main company still has a large debt to oil service providers. Guillermo Romero, CEO of the local subsidiary of Houston-based oilfield services company Baker Hughes, said that "the debt has improved over the past two quarters, but it is still important. There are no payment arrangements with PDVSA. The state-run oil company has shown its good will and has said that it is making all efforts to honor its commitments." However, Romero said that "we asked PDVSA to pay old debts which affect us from the financial point of view." (El Universal, 11-29-2010; http://english.eluniversal.com/2010/11/29/en_eco_art_pdvsa-still-has-debt_29A4789051.shtml)

Corpoelec to suspend electric service to big debtors

Corpoelec plans to suspend the electric service to governorships, mayoralties, public institutions and high-consumers (25KVA) that have large debts with the industry, informed the company’s Distribution and Marketing Commissioner Joaquín Osorio. Also, he said next year they will do the same within the popular sectors. (Veneconomy, 11-27-2010; http://www.veneconomy.com/site/index.asp?ids=44&idt=24066&idc=2)

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.

November 25th, 2010

Economics, Trade & Business

Venezuelan exchange rate could be unregulated

Asdrúbal Oliveros, director of research firm Ecoanalítica, considers that during the first two months of 2011 there could be an increase in the volume of foreign currency in the market and a change in the exchange rate band that is traded in the Transaction System for Foreign Currency Denominated Securities (Sitme). He said that the daily demand for foreign currency through that system has reached about USD 100 million. (El Universal, 11-24-2010; http://english.eluniversal.com/2010/11/24/en_eco_esp_venezuelan-exchange_24A4770857.shtml)

Venezuela's business sector rejects violation of economic rights

The Federation of Trade and Industry Chambers (Fedecámaras), Venezuela's main business association, condemned the "violation" of the economic rights enshrined in the Constitution and the insistence of the Executive Office on establishing a "socialist economy." "The whole country has witnessed how the economic rights enshrined in the Constitution have been violated and scorned with impunity. As a result, the national production structure, which had been consolidated for decades with great effort, has been greatly impacted and was downsized with the consequent decrease in the volume of goods and services produced in Venezuela," said Noel Álvarez, the president of Venezuela's main business association, in a press release. (El Universal, 11-24-2010; http://english.eluniversal.com/2010/11/24/en_eco_art_venezuelas-business_24A4770491.shtml)

Consecomercio published the results of its latest survey of its affiliate members and they show the sales of the sector dropped 5.5% in the third quarter for an annual drop of 30.4% while unemployment increased by 6.1% for 23% annually. Also, the survey shows that 70.5% of the companies polled have not made any investments in this last quarter and only 10% of the dollars used to import were obtained from Cadivi. (Veneconomy, 11-23-2010; http://www.veneconomy.com/site/index.asp?ids=44&idt=24032&idc=3)

External debt on the rise

Venezuelan external debt was up to $68,884 million during this year’s third quarter which represents a 9.61% increase compared to the same period last year, according to data published by the Venezuelan Central Bank (BCV) in its web page on Tuesday. Out of the total amount, $60,390 million corresponds to the public sector while the remaining $8,494 million corresponds to private debt. (Veneconomy, 11-23-2010; http://www.veneconomy.com/site/index.asp?idt=24030&idc=2&ids=44&Var_Send=1&mmD=11&ddD=23&mmH=11&aaD=2010&ddH=25&aaH=2010&Send=Find)

Venezuela ends negotiation with French Casino Groupe, purchases 81.2% of Cativen shares

“Venezuela now owns most of Cativen shares, after closing the purchase on Thursday of 81.2% of them,” pointed out the Vice President of Venezuela Elias Jaua. Thus, the Government ends the negotiations with the French transnational Grupo Casino and concretes the purchase of most of the shares of the Chain of Venezuelan Stores (Cativen), composed of the food distribution network Bicentenary (formerly known as Cada) and the Bicentenary hypermarkets (formerly known as Exito). (AVN, 11-25-2010; http://www.avn.info.ve/node/30261)

Minerven aims to produce over 8,000 kilos of gold per year from 2011

The state-owned Mining Company of Venezuela (Minerven) unveiled a project for the comprehensive upgrading of its equipment and the expansion of operations, enabling it to produce more than 8,000 kilos of gold per year from 2011. This was announced by president of the company –a subsidiary of the Corporación Venezolana de Guayana (CVG)- , Luis Herrera, who noted that this plan will be financed with resources from the Central Bank of Venezuela (BCV). Herrera said the plan will be implemented in 100 days and aims primarily to return the production of different plants affected by the lack of spare parts and technological obsolescence to their previous levels. "These problems have reduced 50% of our production capacity, leaving it at 4,500 kilos a yea.  Following new investments, we hope to the production levels we enjoyed just two or three years ago," he said. (AVN, 11-25-2010; http://www.avn.info.ve/node/30126)

PDVSA plans to issue 3,000 million dollars in bonuses per year

PDVSA plans to issue between 3,000 million and 4,000 million dollars a year in bonds to continue to be financed in the medium term, Reuters reported. The oil company has been increasing its emissions in recent years to support its heavy cost structure and expenses, largely directed to social programs devised by President Hugo Chávez. "PDVSA plans to continue issuing bonds at a rate of between 3,000 (million) and 4,000 million dollars a year. It is not referred to a plan to significantly reduce the level of debt," said a source close to the company, who declined to be identified. (El Universal; http://www.eluniversal.com/2010/11/24/eco_art_pdvsa-preve-emitir-3_2116616.shtml)

Politics

Venezuela Globovision’s Zuloaga Requests U.S. Political Asylum

Guillermo Zuloaga, principal owner of Venezuela’s opposition television network Globovisión, said he has requested political asylum in the U.S, according to an interview broadcast on CNN en Espanol. Zuloaga, who is wanted in Venezuela on usury charges, said the process for requesting asylum was nearing conclusion. (Bloomberg, 11-24-2010; http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=akb_UMvs1pgg)

National Assembly to limit funds for NGOs involved in politics

President Hugo Chavez's requests have been heard. On Tuesday evening, the Venezuelan Head of State said in the National Assembly: "I beg you to pass a very strict law" to prevent political parties groups and non-governmental organizations from being financed by the "US empire."
Roy Daza (ruling United Socialist Party of Venezuela, PSUV, state of Aragua), the President of the National Assembly's Foreign Policy Committee, said on Wednesday that the Venezuelan Parliament will discuss on December 1 a "final draft" of the Bill on International Cooperation. (El Universal, 11-25-2010; http://english.eluniversal.com/2010/11/25/en_pol_esp_national-assembly-to_25A4775451.shtml)

Petroleum & Energy

Venezuela is touting a vast natural gas discovery off its coast

Energy and Oil Minister and PDVSA president Rafael Ramirez said Monday that the latest exploratory drilling has confirmed "extraordinary results": about 15 trillion cubic feet of gas under the sea floor in a place where experts once thought there was only a fraction of that amount. However, energy analysts caution that Venezuela remains far from being able to sell its gas internationally and is still working on trying to meet its domestic demand. (Veneconomy, 11-23-2010; http://www.veneconomy.com/site/index.asp?idt=24016&idc=4&NPag=2&Start=15&aaD=2010&ids=44&Var_Send=1&mmD=11&ddD=23&mmH=11&ddH=25&aaH=2010&Send=Find)

Studied arbitration ban oil contracts

The Venezuelan Government is not fond of accepting decisions made by international courts regarding its oil and gas industry.  Consequently, the Executive Branch is studying the possibility of prohibiting arbitration agreements in contracts involving or oil and gas activities. (El Universal, 11-25-2010; http://www.eluniversal.com/2010/11/25/eco_art_estudian-prohibicion_2117864.shtml)

Venezuela says nuclear reactor for peaceful uses

A nuclear reactor that Venezuela plans to build with Russian help will be used to generate electricity and for medical and industrial purposes - not to make weapons, according to an agreement published Wednesday. The accord, which appeared in the Venezuelan Official Gazette, sets limits on the enrichment of uranium and says the reactor will not be used for "any military objective." (The Washington Post; http://www.washingtonpost.com/wp-dyn/content/article/2010/11/24/AR2010112406352.html)

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.