September 10, 2019

International Trade

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

 

Oil & Energy

Iran, Venezuela supply cut tightens heavy oil market

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

 

Economy & Finance

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

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

 

Maduro regime tries to reinstate price controls

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

 

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

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

 

Politics and International Affairs

Colombia to tell UN that Venezuela harbors terrorists

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

 

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

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

 

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

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

 

Washington pushes EU for tougher sanctions on Venezuela

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

 

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

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

 

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

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

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

 

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

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

 

Venezuela opposition parties back Guaido as congress chief in 2020

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

 

Maduro rejects talks with opposition over alleged envoy's remarks

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

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

 

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

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

 

5.5 magnitude earthquake in Venezuela

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

 

The following brief is a synthesis of the news as reported by a variety of media sources. As such, the views and opinions expressed do not necessarily reflect those of Duarte Vivas & Asociados and The Selinger Group.

March 03, 2017

International Trade

529 food containers have arrived at the Port of La Guaira

529 containers bringing food from Mexico, aboard the container ship CNP PAITA, have arrived at the port of La Guaira. More in Spanish: (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=36067; Ultima Hora Digital, http://ultimahoradigital.com/2017/02/alimentos-llegaron-de-mexico-para-repartirse-en-los-clap/)

Cargo that has arrived at Puerto Cabello

·         30.000 tons of rice

·         27 containers of agro chemicals for state agency AGROPATRIA

·         30.000 tons of wheat for state agency Corporación de Abastecimiento y Servicios Agrícolas (CASA)

·         30.000 tons of white corn

An additional 574 containers bearing food, personal care products and medicine arrived from Cartagena-Colombia on the MAERKS WISMAR. The shipment includes 139 containers of food: canned tuna, black beans, white rice, powdered milk, pasta and margarine. 19 containers of medicine, 12 of personal care products, and 404 bearing vehicle spare parts and machinery. More in Spanish: (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=36065; http://www.bolipuertos.gob.ve/noticia.aspx?id=36074: Ultima Hora Digital, http://ultimahoradigital.com/2017/02/30-mil-toneladas-de-arroz-son-descargadas-en-el-puerto-de-puerto-cabello/; El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/arribaron-a-puerto-cabello-30-000-toneladas-de-arr.aspx)

 

Cargo that has arrived at Maracaibo

·         3.278 tons of food packets from México for the state government of Zulia state. More in Spanish: (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=36063; El Mundo, http://www.elmundo.com.ve/noticias/mundo-corporativo/sociales/contenedores-con-alimentos-llegaron-al-puerto-de-m.aspx)

Cargo that has arrived at El Guamache (Margarita Island):

113 containers from Kingston, Jamaica, including 384 tons of food items such as rice, pasta and coffee, plus 1165 tons of vehicle parts and accessories, textiles, clothing and footwear, furniture and household products, hardware, health and personal care products such as soap, toothpaste and shampoo. More in Spanish: (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=36072)

 

Oil & Energy

Hitting Venezuela's Government where it hurts. Not yet two months into his tenure, U.S. President Donald Trump has demonstrated his intention to increase the pressure on Venezuela's government, whose imperatives are at odds with those of his own administration. Washington appears ready to impose further sanctions on Venezuelan officials and entities, perhaps even against the country's vital state oil and natural gas company, Petroleos de Venezuela (PDVSA). The U.S. government may find it easier to keep targeting Venezuela through sanctions than to organize a regional response. If the Trump administration imposes heavy sanctions on PDVSA, thereby preventing U.S. companies and businesses subject to Washington's jurisdiction from doing business with the oil firm, it could herald Maduro's ruin. Caracas depends on oil for about 95% of its total export revenue, and it has already had to slash imports over the past few years as a result of limited production capacity and sanctions. Tough sanctions on the state oil and gas company would only intensify the economic crisis and probably also the divisions within the government over whether Venezuela should continue down the path of international isolation. Whether more sanctions would cause the Maduro administration to change course depends on the ruling party's internal dynamics. (STRATFOR: https://www.stratfor.com/analysis/hitting-venezuelas-government-where-it-hurts)

 

Economy & Finance

Venezuela running out of cash

The Central Bank of Venezuela says the country is down to just US$ 10.5 billion in foreign reserves. At the same time, Caracas must meet debt obligations of US$ 7.2 billion this year. The country had nearly US$ 30 billion in reserve five years ago; in 2015, it was down to US$ 20 billion. According to economists, the trend can't go on much longer, but it’s not easy to predict how long it would take Venezuela to reach the bottom. Nearly US$ 7.7 billion of the country’s remaining reserves is in gold, according to the latest financial report for 2016. Venezuela had to ship gold to Switzerland to foot debt bills last year. Dwindling reserves are only exacerbating the humanitarian crisis in the country. The economic blow has led to food and medical shortages, as well as skyrocketing prices. Inflation is expected to rise to 1,660% this year and 2,880% in 2018, according to the IMF. Among the key factors boosting inflation experts see the crashing bolivar, huge government spending, poor management of the country's infrastructure, as well as high level of corruption. However, oil prices averaging US$ 55 remain the major problem for the country’s economy. As the largest holder of reported oil reserves in the world, Venezuela produced over 2.4 million barrels of crude and condensates per day at the end of the last year, as per ministry data. Oil shipments make up more than 90% of the country's exports. That makes it more and more difficult for Caracas to pay debts and import food, medicine and other essentials for its citizens. The country's imports dropped 50% from a year ago, according to Venezuelan research firm ECOANALITICA. (RT: https://www.rt.com/business/379160-venezuela-ten-billion-down-oil/; Fox News: http://www.foxnews.com/world/2017/03/02/venezuelas-foreign-reserves-tank-to-10-5-billion-report-says.html)

South America's last bastion of Socialism is falling to pieces

The currency is worth a dime, though probably not even that much. The brain drain is immense. People are starving. Unemployment is in the double digits. Inflation is triple digits. And its president, Nicholas Maduro of the disastrous United Socialist Party of Venezuela, talks to deceased president Hugo Chavez who comes to him in the form of a little bird. South America's last hold-out of pre-colonial times is going broke. It has US$ 10 billion in foreign currency reserves. There are now individuals in South America that have more money than Venezuela's central bank. If Maduro wanted to be more like Cuba, he's got it, maybe minus the 57 Chevy's and armies of doctors. It's not just the popping of the oil bubble that's hurt Venezuela. Every other one trick pony has managed to survive. Venezuela's economy has contracted an impressive 18.6% in 2016. If there is a failed state in the America's, Maduro is running it. Dwindling oil revenues have knocked Venezuela out. It faces unprecedented social, political and economic crisis. The only thing that is keeping incomes up is the fact that Maduro keeps giving poor people money. In the absence of structural reforms and without a resolution to the political impasse between the ruling Socialists and the opposition, the country is set for another challenging year. The absence of real sector and inflation information makes any assessment of the economy difficult. (Forbes: https://www.forbes.com/sites/kenrapoza/2017/03/02/south-americas-last-bastion-of-socialism-is-falling-to-pieces/#3b804a292fd8)

Job losses, low wages add to Venezuela economic hardship

Multiple companies - local and foreign - are closing doors or cutting payrolls across Venezuela, which despite its oil wealth is suffering deep recession, triple-digit inflation and chronic shortages. As per CONSECOMERCIO, the major retail industry group, Venezuela in the past 18 months lost close to 1 million private sector jobs. "Who is creating jobs? Nobody," said CONSECOMERCIO Vice President Alfonso Riera. "That unemployed population unfortunately is migrating to the street, informal work or worse." Government critics say nationalizations of businesses and more than a decade of price and currency controls have crippled private enterprise, but President Nicolas Maduro says Venezuela is a victim of an "economic war" led by business leaders with U.S. help. Venezuela has not reported official unemployment figures since April 2016, when the rate was at 7.3%. A survey by three universities showed unemployment at the end of 2016 remained at that level. But the study also found 38% of those surveyed were working informal jobs ranging from buying and reselling goods to freelance work without benefits. Only 28% said they were public employees and 27% had a job in the private sector. Union sources said major companies such as food and beermaker POLAR, carmaker FORD and bottler COLA-COLA FEMSA all are reducing their workforce by negotiating redundancies and offering employees buyouts. "People are taking the packages," said Johnny Magdaleno, who leads a POLAR union. He said workers were being offered the equivalent of US$ 2,500 at the black-market exchange rate. "Production has fallen too much," he said. "The workers who are left are making 4,000 bolivars weekly ($1 at the black-market rate). That doesn't even enable them to buy a pack of flour."  (Reuters: http://www.reuters.com/article/us-venezuela-economy-idUSKBN16926M)

 

Politics and International Affairs

US Senate unanimously passes resolution demanding Trump act on Venezuela
US Senators unanimously passed a resolution Wednesday urging President Donald Trump to take further action against Venezuelan officials. The bill also expressed support for a controversial move by Organization of American States (OAS) head Luis Almagro to invoke the Democratic Charter. If invoked, Venezuela would be suspended from the OAS. When Almagro first announced the move in 2016, he also demanded President Nicolas Maduro be “immediately” removed from office, prompting many Latin American leaders to accuse the OAS head of overreach. Despite the controversy, the Senate bill called on Trump to “provide full support for OAS efforts in favor of constitutional and democratic solutions to the political impasse and to instruct federal agencies to hold officials of the Venezuelan government accountable for violations of US law and abuses of internationally recognized human rights.” The bill will now head to the House of Representatives. One of the main supporters of the bill, Senator Marco Rubio, thanked both Republicans and Democrats for supporting the move. The bill was co-sponsored by prominent Democrats including Senators Bob Menendez and Bill Nelson, along with Hillary Clinton’s 2016 presidential running mate Tim Kaine. (Venezuelanalysis.com: https://venezuelanalysis.com/news/12953; El Universal, http://www.eluniversal.com/noticias/daily-news/senate-lobbies-for-release-political-prisoners-venezuela_641844; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2431988&CategoryId=10717)

US Council on Foreign Relations: Options for U.S. Policy in Venezuela, prepared for the US Senate Committee on Foreign Relations. Venezuela’s economic, political, and social situation represents both a regional problem and a global affront to democratic values. As such it should be a priority for the current U.S. government, which should invest in the necessarily complex, time consuming, and fragile diplomatic processes to push for change, as well as to prepare for the day when it in fact may come. (Full presentation: ATTACHED)

Maduro looks to get on Trump’s good side with praise for Congressional address

Venezuela’s socialist dictator Nicolás Maduro appears to be attempting to ingratiate himself with his American counterpart Donald Trump, praising the president’s joint address to Congress on Tuesday as “the first time I hear a U.S. president speak of the struggle against drug trafficking.” He highlighted as significant President Trump’s emphasis on combatting drug addiction from the United States, particularly in poorer communities. Maduro’s compliments follow a month in which the U.S. Treasury Department designated his vice president, Tareck El Aissami, a “Specially Designated Narcotics Trafficker” for his ties to various cocaine-trafficking outlets and President Trump personally welcomed Lilian Tintori, wife of Venezuelan political prisoner Leopoldo López, to the Oval Office. Maduro nonetheless highlighted that he and President Trump “have differences” but reiterated that he wished to engage in respectful diplomatic relations with the White House, a departure from his regular warnings that President Barack Obama was preparing a ground invasion of Venezuela during his tenure. Among those differences is the fact that Maduro employs a known high-level drug trafficker as his second-in-command. According to the U.S. Treasury Department, El Aissami has cooperated with “groups as varied as the Mexican Zetas cartel and Hezbollah.” Reports — published prior to the Treasury using the Drug Kingpin Act to freeze El Aissami’s U.S. assets — accused him of, among other crimes, recruiting Latin American Muslims to join Hezbollah and running his own cocaine trafficking outfit the Cartel de los Soles. Diosdado Cabello, the Socialist Party’s minority leader in Venezuela’s National Assembly, is widely believed to be the Cartel de los Soles’s boss. While Maduro himself has never been accused of drug trafficking, reports have indicated he has funded political campaigns with drug money generated by Cabello and El Aissami. El Aissami responded to the Treasury sanctions with a full-page ad attacking the United States in the New York Times. In addition to sanctioning El Aissami, the Trump administration has called for the release of all political prisoners under Maduro’s chavista dictatorship. In February, Trump welcomed Tintori, an anti-socialist activist and wife of Popular Will party leader Leopoldo López, to the White House, publishing a photo standing next to her, Vice President Mike Pence, and Senator Marco Rubio on Twitter. (BREIBART: http://www.breitbart.com/national-security/2017/03/02/venezuela-tries-get-trumps-good-side-drug-war/)

 

…but falls back on familiar defiant discourse after US Senate vote

Embattled President Nicolas Maduro warned Wednesday of a resurgence in “racism and xenophobia”, the day after the US Senate unanimously voted a resolution expressing “profound concern” about the present Venezuelan crisis.
It is a familiar pattern for Cuban and Venezuelan leaders, and, in his first public speech after the U.S. Senate’s vote, Maduro re-adopted it with ease. “I am making a worldwide alert in the face of surging dangerous, segregationist, racist and xenophobic currents that threaten to divide mankind even further, threaten to fill the whole world with war. That’s why I am calling and asking for the Venezuelan people to unite, to keep on making the revolution and keep on defending our identity,” Maduro said during an event of the CLAP, a new government mechanism to ration price-controlled foodstuffs administered by ruling party PSUV militants. Maduro didn’t mention the U.S. vote specifically, but he denounced “white supremacy” and it was enough for a crowd of hundreds, clad in red, to cheer for him. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2432136&CategoryId=10717)

 

US State Department reports Venezuela has “failed demonstrably” on drug traffic control

“During the past 12 months, the Venezuelan government failed demonstrably to make sufficient efforts to meet its obligations under applicable international counter-narcotics agreements or to uphold the counter-narcotics measures set forth in the Foreign Assistance Act.  Due to Venezuela’s porous border with Colombia, its weak judicial system, sporadic international counter-narcotics cooperation, and permissive and corrupt environment, Venezuela remains a major drug-transit country.  It is one of the preferred trafficking routes for illegal drugs, predominately cocaine, from South America to the Caribbean region, Central America, the United States, Western Africa, and Europe. In 2015, the Venezuelan government engaged in minimal bilateral law enforcement cooperation with the United States.  Venezuelan authorities do not effectively prosecute drug traffickers, in part due to political corruption. Although the Venezuelan government, as a matter of policy, neither encourages nor facilitates illicit drug production or distribution, and although it is not involved in laundering the proceeds of the sale of illicit drugs, public corruption is a major problem in Venezuela that makes it easier for drug-trafficking organizations to operate.  Additionally, the Venezuelan government has not taken action against government and military officials with known links to FARC members involved in drug trafficking.” US Department of State: https://www.state.gov/documents/organization/268025.pdf)

OAS Democratic Charter action on Venezuela hinges on Vatican

In response to the US Senate resolution, Luis Almagro, Secretary General of the Organization of American States (OAS) says: “As long as the Vatican remains there we will definitely take no action to apply the Democratic Charter. If we are told that dialogue is over and we receive notice from the opposition and the Vatican about it, we will recommend the timely steps to take”. Talks between the Maduro regime and the Venezuelan opposition remain paralyzed since December, with the opposition charging that the government has reneged on agreements. Spain has said it continues to support efforts by its former President José Luis Rodríguez Zapatero to prop up talks here. More in Spanish: (Notiminuto: http://www.notiminuto.com/noticia/para-la-carta-democratica-todas-las-miradas-van-al-vaticano/#

Colombia’s FM says dialogue is the only way to face Venezuela’s great problems

Colombian Minister of Foreign Affairs María Angela Holguín has called for more dialogue between the Venezuelan government and the opposition, sponsored by former presidents José Luis Rodríguez Zapatero (Spain), Martín Torrijos (Panama) and Leonel Fernández (Dominican Republic), in order to face up to this nation’s "great difficulties." During a press conference in Madrid, after a meeting with his Spanish counterpart, Alfonso Dastis, Holguín said Rodríguez Zapatero, “has made a great effort” for dialogue in Venezuela. “Polarization in Venezuela is immense, but through dialogue a solution will be found to a crisis that worries many countries around the world; we, in Colombia, have it closer,” the minister said. (El Universal, http://www.eluniversal.com/noticias/daily-news/holguin-dialogue-the-only-way-face-great-problems_642023; http://www.eluniversal.com/noticias/daily-news/colombia-backs-dialogue-venezuela_641837)

 

European Foreign Service asks Venezuela to abide by its Constitution

Adrianus Koetsenruijter, Head of the South America Division of the European External Action Service (EEAS), has strongly recommended that the Venezuelan government must abide by the Constitution and made an appeal for renewed dialogue between government authorities and the dissent. “It has to do with respect for the Constitution, respect for fundamental rights and liberties, such as freedom of speech, opinion and association,” Koetsenruijter while speaking at the European Parliament Committee on Foreign Affairs. He reported that many Venezuelans have been incarcerated in the absence of proper conditions of transparency, and insisted that the government ought to observe the “basic principles of democracy”. (El Universal, http://www.eluniversal.com/noticias/daily-news/european-external-service-exacts-venezuela-observance-constitution_641647)

 

New charges brought against imprisoned Defense Minister

A military court here has brought new charges against former Defense Minister General Raúl Isaias Baduel, who was due to be freed today after serving seven years and eleven months for alleged corruption. He is now being accused of “treason”, and was forcibly transferred to the military court by the Military Counter-Intelligence agency. Baduel’ s legal counsel termed the charges “unfounded military criminal persecution”. Baduel had been on conditional freedom since mid-2015, but was detained again on January 12^th for allegedly violating the conditions of his parole. Baduel was Defense Minister under the late President Hugo Chavez and one of his closest advisors. He is considered to have been the key force in bringing Chavez back to power after he was ousted for 48 hours in April 2002, but signed a 2010 manifesto publicly calling on the late president to resign, thus becoming a key opposition figure. More in Spanish: (Infolatam: http://www.infolatam.com/2017/03/03/dictan-nueva-privativa-libertad-exministro-baduel-e-imputan-otros-cargos/
 

In search of Venezuelan pilots of a plane in flames in Honduras

Honduras police authorities are searching for the pilots of a plane with Venezuelan registration that entered the country on Monday morning and landed to the north of the nation. Honduran investigators suspect that the plane had been used to carry narcotics, in keeping with the standards of such flights related to drug trafficking, such as arriving in the early hours of the morning, landing on non-authorized areas and setting fire to the plane after the unloading, DPA cited. The aircraft with Venezuelan registration landed in a field in the city of Choloma, around 280 kilometers from Tegucigalpa. (El Universal, http://www.eluniversal.com/noticias/daily-news/search-venezuelan-pilots-plane-flames-honduras_641648)

 

The following brief is a synthesis of the news as reported by a variety of media sources. As such, the views and opinions expressed do not necessarily reflect those of Duarte Vivas & Asociados and The Selinger Group.

July 05, 2016

International Trade

12 food ships anchored in Bolipuertos

A total of 12 food ships are anchored at Puerto Cabello, Carabobo state. This was announced by Food Minister General Rodolfo Marco Torres, who says part this includes boats bearing yellow corn, two with soybeans, and another vessel is currently offloading 30,000 tons of white corn. More in Spanish: (Notitarde; http://www.notitarde.com/Hay-12-buques-de-alimentos-anclados-en-Bolipuertos/Economia/2016/07/02/1007351/)

 

Táchira state governor calls for reopening border

Táchira border state governor, Lieutenant José Vielma Mora, has called for reopening the border with Colombia to increase trade. He also speaks of building a refinery along the border to supply Colombia with fuel, as he conducted an inspection of a border pass jointly with the governor of Colombia’s bordering state of Norte de Santander, William Villamizar. Both governors agreed on the need to restore the important trade, social, political and cultural exchanges between both nations. More in Spanish: (Noticiero Venevision: http://www.noticierovenevision.net/economia/2016/julio/2/161414=gobernador-vielma-mora-evalua-construir-una-refineria-en-la-frontera)

 

 

Logistics & Transport

Aeronautic services are now officially priced in US dollars

The Transport and Public Works Ministry has published official dollar tariffs for aeronautic services in Venezuela, at the Maiquetía International Airport and all other airports under the state control. Service to Latin America and the Caribbean will cost US$ 3,000; to the US AND Canada, US$ 3,300 and to Europe, US$ 5,000. More in Spanish: (Notitarde; http://www.notitarde.com/Fijan-tarifas-del-servicio-aeronautico-en-dolares/Economia/2016/06/30/1007156/; El Nacional, http://www.el-nacional.com/economia/Fijan-tarifas-dolares-servicio-aeronautico_0_875912582.html; El Universal, http://www.eluniversal.com/noticias/economia/nuevas-tarifas-para-servicio-aeronautica-son-fijadas-dolares_317306)

 

 

Oil & Energy

Venezuela oil price falls below us$ 40

The price Venezuela receives for its mix of medium and heavy oil fell back below US$ 40 as markets and oil prices around the world collapsed on a surprise decision to leave the European Union by the U.K.  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 July 1 was US$ 39.75, down 41 cents from the previous week's US$ 40.16. According to Venezuelan government figures, the average price in 2016 for Venezuela's mix of heavy and medium crude is now US$ 31.15 for the year to date. Venezuela's average oil price for 2015 was US$ 44.65, down from 2014's US$ 88.42, below 2013's US$ 98.08, 2012's US$ 103.42 and 2011's US$ 101.06, 2010's US$ 72.43, and even 2009’s average price of US$ 57.01. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2415590&CategoryId=10717)

 

PDVSA says 2015 revenue tumbled on oil price fall

State oil company PDVSA's 2015 revenue tumbled 41% from the previous year, the company announced, as a result of a steep drop in oil prices that has pushed this nation into economic crisis. Revenue dropped to US$ 72.2 billion from US$ 121.9 billion the year before, while net profit fell to US$ 7.3 billion compared with US$ 9.1 billion the previous year, the company said. Economists tend to focus on PDVSA's revenue because of its multibillion-dollar contributions to government campaigns make profit figures less relevant in assessing performance than they are for private firms. PDVSA's transfers to social programs in 2015 were US$ 9.2 billion, and state development fund Fonden received US$ 974 million. According to the financial results of fiscal year 2015, Pdvsa’s oil output averaged 2.7 million barrels per day (bpd). However, the company’s head Eulogio del Pino claims the “industry produced an equivalent of 3.8 million barrels of oil.” (Reuters, http://www.reuters.com/article/us-venezuela-pdvsa-idUSKCN0ZJ02T; Bloomberg, http://www.bloomberg.com/news/articles/2016-07-03/venezuela-s-pdvsa-revenue-plunges-amid-commodity-price-collapse; El Universal, http://www.eluniversal.com/noticias/daily-news/venezuelas-oil-revenues-plummet-407-2015_317708)

 

Maduro ends power rationing as drought eases

Venezuela is ending an electricity rationing program launched in April in response to a severe drought that crimped the operations of the nation's hydroelectric generators, President Nicolas Maduro on Friday. "As of Monday we can say that the power administration plan will stop and electrical service will function normally throughout the country," Maduro said in a televised broadcast. "Today we can say that Guri has recovered and we have the conditions under which power service can function normally." Heavily subsidized electricity has spurred one of the region's highest rates of power consumption and left the state-run utilities with limited revenue. (Reuters, http://www.reuters.com/article/us-venezuela-energy-idUSKCN0ZI01B)

 

Amuay refinery ups output, restarts distillation unit

Venezuela's 645,000 barrel-per-day (bpd) Amuay refinery has restarted a distillation unit and is now processing 350,000 bpd compared with 160,000 bpd before, according to a union leader and a refinery worker who asked not to be identified and said Amuay's 180,000 bpd distillation unit No. 5 was producing at 140,000 bpd. The refinery's cat cracker is operating at around 70,000 bpd, said union leader and government critic Ivan Freites. The refinery's flexicoker unit remains shuttered but is expected to be operational again within 20 days, he said. (Reuters, http://www.reuters.com/article/us-refinery-operations-pdvsa-amuay-idUSKCN0ZH62B)

 

Harvest Natural Resources dumps Venezuela operations

Harvest Natural Resources, Inc. (HNR) has announced that it and its wholly-owned subsidiary, HNR Energia B.V. (HNR Energia), have entered into a share purchase agreement with CT Energy Holding SRL, a private investment firm (CT Energy), to sell all of the company’s interest in Venezuela. Under the terms of the Share Purchase Agreement, CT Energy will acquire HNR Energia’s 51% interest in Harvest-Vinccler Dutch Holding B.V., a Netherlands company, through which all of Harvest’s Venezuelan interests are owned, and CT Energy or an affiliate will deliver to Harvest US$ 80 million in cash, subject to certain adjustments, and a $12 million six-month 11% note payable by CT Energy or such affiliate. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2415544&CategoryId=10717)

 

PDVSA to export gas to Colombia

Petroleum and Mining Minister Eulogio del Pino announced that state-run oil company Petróleos de Venezuela (PDVSA) would soon begin to export gas to Colombia, as part of the Mariscal Sucre oil project. Del Pino, who is also Pdvsa’s head, stressed the importance of gas export, which will be conducted from Cardón gas field in north-western Falcón state. This is one of the world’s largest gas fields, whose operations began last year with private investment. (El Universal, http://www.eluniversal.com/noticias/daily-news/pdvsa-export-gas-colombia_317684)

 

Maduro meets with US energy company representatives

President Nicolás Maduro on Friday met with Joseph Kennedy, the founder of US non-lucrative Citizens Energy Corporation, at the Miraflores Presidential Palace downtown Caracas, for a meeting that was also attended by Foreign Minister Delcy Rodríguez and corporation’s representatives. (El Universal, http://www.eluniversal.com/noticias/daily-news/venezuelas-maduro-meets-with-energy-company-representatives_317716)

 

 

Economy & Finance

Central Bank reportedly provides full statistics to the IMF for the first time in 12 years

A source within Venezuela’s Central Bank (BCV) says the institution has provided the International Monetary Fund with full statistics for the first time in 12 years. The same source says the government ordered the BCV to provide statistics for the first time since 2004, when the late Hugo Chavez ordered IMF offices in Venezuela closed. Analysts believe the government may be seeking some type of loan or financial aid from the IMF, or that it could be getting ready to draw upon a larger portion of drawing rights from the institution, since Venezuela has used up all those it could freely cash in. Both options would require providing economic data for the IMF to evaluate. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Banco-Central-Venezuela-estadisticas-FMI_0_877712316.html)

 

Bernal admits expropriations have failed

Freddy Bernal, who heads the Control and Command Center for the government’s Local Supply and Production Local Committee (CLAPs), has admitted that past expropriations have failed. He says “in the past we took some steps, such as expropriating some companies and, unfortunately, we did not make them productive, or they failed in our hands”. He says they are now “sitting down with business to establish joint ventures, 60% government, and 40% private, in several areas: fishing, industry, manufacture”. More in Spanish: (Noticieron Venevision: http://www.noticierovenevision.net/economia/2016/julio/3/161460=freddy-bernal-reconocio-que-las-expropiaciones-fracasaron; El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/bernal-admitio-que-las-expropiaciones-fracasaron.aspx#ixzz4DR1hOrkR)

 

Only 10% of all companies have received FOREX through the DICOM system, according to a poll taken at CONINDUSTRIA’s 2016 meeting; and only 2% received FOREX through the officially controlled preferential rate. The poll also shows that 47.5% of industries have raw materials inventories lower than 3 months. 81% have lowered production, and another 56% expect to lower production within the next 6 months. More in Spanish: (Notitarde: (Notitarde; http://www.notitarde.com/Solo-10-de-las-empresas-han-recibido-dolares-Dicom/Economia/2016/06/30/1007155/)

 

“Venezuela’s economic indicators at this time are, by far, the worst in history”, says Luis Vicente León, of DATANALISIS. He says 65% of the population prefers the black market to buy goods that are price-controlled, leading to a surcharge of an average 300 percentage points about official prices. “The gap between official and black market prices is some 80-100 times”. A 10% drop in overall consumption is expected this year. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Indicadores-economicos-Venezuela-momento-historia_0_875912744.html)

 

 

Politics and International Affairs

Obama urges Venezuela to respect democratic process, recall referendum

US President Barack Obama has weighed in on Venezuela’s political turmoil, calling on the government to release what he called “political prisoners” and to respect the country’s National Assembly.  The head of state made the comments in a press conference from the North American Leaders Summit in Ottawa, Canada, where he also urged both political factions in Venezuela to participate in dialogue. He was accompanied by his Mexican and Canadian counterparts, Enrique Peña Nieto and Justin Trudeau. "Given the very serious situation in Venezuela and the worsening plight of the Venezuelan people, together we're calling on the government and opposition to engage in meaningful dialogue and urge the Venezuelan government to respect the rule of law and the authority of the national assembly," Obama said at a news conference with the leaders of Canada and Mexico. "Political prisoners should be released, the democratic process should be respected and that includes legitimate efforts to pursue a recall referendum consistent with Venezuelan law."  (Reuters: http://www.reuters.com/article/us-venezuela-usa-obama-idUSKCN0ZF2KV; MSNBC: http://nsnbc.me/2016/07/02/obama-urges-dialogue-in-deadlocked-venezuela-sides-with-opposition/)

 

Argentina’s Macri accuses Venezuela of violating “every human right”

Argentina’s President Mauricio Macri has accused the Venezuelan regime of “violating every human right”, and hopes for a recall referendum as soon as possible. He says the Maduro regime “has brought famine and neglect to the Venezuelan people, which is why they need a referendum, they need to have elections as soon as possible”. Asked whether this position clashes with Argentina’s stance at the Organization of American States on whether to apply the Democratic Charter, he said: “We have done what we have been doing. We are seeking different routes to bring about this result, elections as soon as possible and always upholding our commitment to defend human rights in Venezuela”. More in Spanish: (Clarin: http://www.clarin.com/mundo/Macri-Venezuela-violar-derechos-humanos_0_1607239347.html

 

Paraguay seeks to exclude Venezuela from MERCOSUR

Paraguay has formally asked for a special meeting of MERCOSUR foreign minister to examine Venezuela’s domestic political situation in the light of the 1998 Ushuaia Protocol, which establishes a “democracy clause” calling for excluding any country that violates democratic order from the regional bloc. Paraguay’s ambassador to MERCOSUR, Hugo Saguier, who delivered the request to Uruguay’s Foreign Minister Rodolfo Nin, says “we are calling for using the Democratic Charter and the Urshuaia Protocol because we believe Venezuela is doing through a democratic crisis”. He also said Paraguay is upset because Uruguay and Argentina unilaterally called off a meeting of heads of state to transfer the pro tem Presidency of MERCOSUR from Uruguay to Venezuela, and instead called on the group’s foreign ministers to do so. Nin has replied that transferring the pro tem presidency is a matter of rules and does not bear upon political matters. More in Spanish: (El Observador: http://www.elobservador.com.uy/paraguay-pide-discutir-la-exclusion-venezuela-del-mercosur-n935501; Noticiero Venevision: http://www.noticierovenevision.net/internacionales/2016/julio/4/161618=uruguay-asegura-que-la-entrega-de-la-presidencia-pro-tempore-a-venezuela-esta-apegada-al-caracter-juridico)

 

OAS Legal Counsel says “the Democratic Charter is already being applied” to Venezuela

Jean Michel Arrighi, Chief Legal Counsel to the Organization of American States, says the Hemispheric Democratic Charter is being applied to Venezuela from the very moment Secretary General Luis Almagro rendered his report on June 23^rd. Arrighi also says Article 20 of the Charter empowers the Secretary General to act “when the constitutional order is altered so as to seriously upset the democratic order”, and he would be remiss in offering assistance if he didn’t. The Maduro regime argues that when there is a legitimate government in a nation, the Secretary General has no right to act, but Arrighi says that Article 20 is intended for the case in which there is in fact a legitimate government and that is why it involves diplomatic efforts. More in Spanish: (Infolatam: http://www.infolatam.com/2016/06/30/responsable-juridico-de-la-oea-la-carta-democratica-ya-se-esta-aplicando/)

 

International Socialist organization advocates recall referendum in Venezuela this year

Member parties of the International Socialist organization have issued a communiqué voicing their concern over Venezuela’s state of affairs and made an appeal for “a real and effective dialogue between the Venezuelan government and opposition.” They also recommend holding the recall referendum this very year, and express support for an OAS statement in support of the initiative of former presidents José Luis Rodríguez Zapatero of Spain, Leonel Fernández of the Dominican Republic, and Martín Torrijos of Panama. (El Universal, http://www.eluniversal.com/noticias/daily-news/socialist-international-advocates-recall-referendum-venezuela-this-year_317711)

 

Zapatero discusses dialogue efforts in Venezuela with the European Union

Federica Mogherini, the European Union’s High Commissioner for Foreign Affairs, met with Spain’s former President José Luis Rodríguez Zapatero, to discuss the Union’s support of efforts for a “dialogue in Venezuela”. Zapatero says the dialogue he is trying to promote is “a long, hard and difficult process”, and that their efforts are in an exploratory phase. More in Spanish: (Noticiero Venevisión: http://www.noticierovenevision.net/internacionales/2016/junio/30/161232=zapatero-aborda-con-la-union-europea-apoyo-al-dialogo-en-venezuela)

 

Ramos cautions that Supreme Tribunal plots sentence nullifying recall referendum

Henry Ramos Allup, President of the National Assembly, is expecting a Supreme Tribunal (TSJ) sentence which would nullify recall referendum proceedings to date, and order a new collection of 1% signatures for a petition to begin the process. He says the decision was planned by pro regime legislators and members of the TSJ’s Constitutional Chamber, and would be in the hands of Justice Luis Damiani Bustillos; he adds that the National Elections Council would then call for regional elections, to vote for governors. More in Spanish: (Noticiero Venevisión: http://www.noticierovenevision.net/politica/2016/julio/1/161373=ramos-allup-advierte-sobre-sentencia-del-tsj-que-anule-el-proceso-de-rr; El Nacional, http://www.el-nacional.com/politica/PSUV-asoma-TSJ-ordenara-revocatorio_0_875912729.html)

 

Borges says recall referendum is not negotiable

Julio Borges, leader of the majority opposition bloc in the National Assembly says the proposed recall referendum is a Constitutional right of the Venezuelan people and not a subject for discussion in any possible talks with the government. “That is non-negotiable, that does not exist, that is a right that is moving forward and no one can stop it, if the government wants to talk about how to reform the economy, about respect toward the National Assembly, about how to free political prisoners, about how to reenergize productivity, those matters are welcome because they are national problems; but there are matters that are not subject to talks, and among them the recall referendum is not been subject for talks or any sort of negotiation”, he says. More in Spanish: (Noticiero Venevision: http://www.noticierovenevision.net/politica/2016/julio/4/161575=borges-aseguro-que-el-rr-no-es-un-tema-de-discuta-en-una-eventual-mesa-de-dialogo-con-el-gobierno)

 

Ramos says military high command backs President, not Constitution.

President Nicolas Maduro has demanded absolute loyalty from Venezuela’s military in order to carry forth Bolivarian ideals and the Chavez legacy. At the same time, National Assembly President Henry Ramos Allup says “the high command of the Armed Forces has chosen to support President Nicolás Maduro over supporting the Constitution”; and adds that dialogue is impossible under such conditions: “Take note: It is impossible to dialogue with a military gun pointing at your head”. More in Spanish: (Infolatam: http://www.infolatam.com/2016/07/03/nicolas-maduro-exige-la-maxima-lealtad-de-su-fuerza-armada/; Noticieron Venevision: http://www.noticierovenevision.net/politica/2016/julio/3/161469=ramos-allup-destaco-que-la-fanb-apoya-a-maduro-antes-que-respaldar-la-constitucion)

 

US accuses Venezuela of complicity in human trafficking

The United States has again included Venezuela, along with Haiti and Belize, on the list of countries that are not making enough efforts to combat people trafficking. US President Barack Obama now has 90 days to decide if sanctions will be imposed on the nations on the “black list”. Those sanctions could include freezing non-humanitarian and non-commercial aid or denying the countries loans from multilateral institutions. Venezuela was included on the blacklist in 2014 and remains there after appearing for several previous editions in “special observation,” the next-lowest category where Cuba is. “The Venezuelan government does not fully comply with minimum standards for the elimination of (human) trafficking and is not making significant efforts to do it so,” the report reads. (Today Venezuela: http://todayvenezuela.com/2016/07/04/us-accuses-venezuela-of-complicity-in-human-trafficking/); and more in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/eeuu-acusa-venezuela-complicidad-con-trafico-personas_317309)

 

Curfew imposed on Delta Amacuro state due to food riots

Delta Amacuro state governor Lizeta Hernández issued a 24-hour curfew after food riots led to 146 arrests in the state’s capital, Tucupita, in far Eastern Venezuela, bordering Guyana. (Noticieron Venevision: http://www.noticierovenevision.net/nacionales/2016/julio/1/161308=decretan-toque-de-queda-en-delta-amacuro-debido-a-hechos-irregulares-en-tucupita)

 

 

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.