January 21, 2020

International Trade

US$ 260 million reported in alcoholic beverage exports from Venezuela

Luis Enrique Cardenas, President of the Venezuelan Alcoholic Industry Chamber (CIVEA) reports that close to US$ 260 in alcoholic beverages were exported from Venezuela by the private sector during 2019, particularly to the European Union. (El Universal; https://www.eluniversal.com/economia/59929/exportan-260-millones-en-bebidas-alcoholicas)

 

Oil & Energy

U.S. extends CHEVRON Venezuela sanction waiver

The United States Treasury Department granted CHEVRON another three-month sanction waiver to continue operating in Venezuela, with the expiry date of this latest extension set for April 22. The Treasury Department has been granting Chevron three-month extensions of its sanction waiver for a while now, with the one it announced last October reportedly being a topic of heated discussion in the Trump administration in light of Washington’s attempts to stifle all oil revenues going into the coffers of the Maduro government. Some, however, notably Secretary of State Mike Pompeo, argued that the presence of a U.S. company in Venezuela would help to quicken the recovery of its oil industry when—and if—the government changes. Reuters noted that CHEVRON reported losses of US$ 104 million related to its business in Venezuela for the first nine months of the year. Yet if the Treasury Department stops granting it sanction waivers, Chevron would have to leave the country, which would cost it US$ 2.7 billion in assets. Besides CHEVRON, four oilfield services companies have been granted sanction waivers to continue doing business in Venezuela. However, SCHLUMBERGER, BAKER HUGHES, HALLIBURTON and WEATHERFORD have wound down their operations there to virtually nothing. (Oil Price: https://oilprice.com/Latest-Energy-News/World-News/US-Extends-Chevron-Venezuela-Sanction-Waiver.html; The Houston Chronicle: https://www.houstonchronicle.com/business/article/American-energy-companies-to-remain-in-Venezuela-14990649.php; Reuters, https://www.reuters.com/article/us-venezuela-chevron/u-s-grants-chevron-another-three-months-for-venezuela-operations-idUSKBN1ZH0DH)

 

Oil buyers steer clear of Venezuela over Petro payments

Buyers of Venezuelan crude oil have stopped dealing with this nation after officials started demanding payment of port fees in the country’s controversial Petro cryptocurrency. Sources told media outlet World Oil that exports of at least a million barrels of oil were put on hold after the government announced the fees must be paid in Petro tokens. Buyers were reportedly worried that paying in Petro may violate US sanctions. (Coin Rivet: https://coinrivet.com/es/oil-buyers-steer-clear-of-venezuela-over-petro-payments/)

 

Economy & Finance

Venezuela Petro dumped at a 50% discount at LocalBitcoins

Venezuelans are dumping the government-issued Petro, a crypto coin backed by a barrel of Oil, for half its value (US$ 30) at peer-to-peer exchanges like LocalBitcoins. The situation has worsened over the past few weeks as the government has scrambled to tame the USD/Bolivars rate but shutting down avenues for liquidation. At the time of writing, 50k Bolivars equals to $1 while 1 Petro (PRT) is pegged at US$ 60. The Maduro-led regime asserts that each coin is more than a medium of value but a crypto asset, like Bitcoin, in an economy stricken by economic turmoil and world’s leading hyperinflation. According to sources in Venezuela, the government airdropped 0.5 Petro to government workers and pensioners claiming that their effort reached 6 million people. As a crypto asset, the objective of the government was to probably avail a shield for its citizens. However, it soon emerged that people used the same airdropped Petro to buy ordinary stuff through Point-of-Sale and government-supported Petro Wallets. Both avenues were shut, paving the way for people to liquidate at peer-to-peer exchanges. At LocalBitcoins, the value of each Petro was consequently priced at US$ 30, 50% of what the government had set. (Coin Gape: https://coingape.com/venezuela-petro-dumped-at-a-50-discount-in-localbitcoins/)

 

Maduro opens international crypto casino

Nicolas Maduro has authorized the opening of an international casino at a luxury hotel in Caracas where bets must be placed in Petros, the country’s national oil-backed digital currency. Several cryptocurrencies and fiat currencies can be exchanged into Petros to wager in the casino. Maduro announced Friday that he has authorized the opening of a casino at the Humboldt Hotel in Caracas where bets must be placed in Petros. The hotel, located on the peak of El Avila hill, was reopened in 2018. Gamblers must acquire PTR to participate. Following Friday’s casino announcement, the media started reporting that Venezuela may be warming up to casinos again. The Humboldt Hotel’s casino is expected to begin operations in the coming months, but Maduro did not reveal whether he plans to open more casinos. (Bitcoin: https://news.bitcoin.com/maduro-opens-crypto-casino-venezuela/)

 

Politics and International Affairs

Pompeo vows US support as he meets Venezuela's Guaidó in Colombia

Venezuela's acting President Juan Guaidó has met with US Secretary of State Mike Pompeo in Colombia's capital, as he tries to shore up international support amid a power struggle with Nicolas Maduro.

• Venezuela is a "failed state", Pompeo said on Monday, after meeting Guaidó on the sidelines of a three-day counterterrorism ministerial meeting in Bogota. "I would fully expect there will be further action that the US would take to continue to support President Guaidó and the Venezuelan people," Pompeo told journalists. "We do not talk about particular sanctions, but everyone can fully expect that the US is not done," Pompeo warned, without specifying what action Washington will take.
• “I’ve heard this idea that we’ve underestimated Maduro. What’s been underestimated is the desire for freedom that rests in the hearts of the Venezuelan people,” he said. “We are collectively — the Europeans, the other countries in South America, the United States are determined to deliver that outcome for the people of Venezuela.”
• "The world must continue to support the Venezuelan people's effort to restore their democracy and put an end to Maduro's tyranny which harms millions of Venezuelans and has an impact on Colombia and indeed on the entire region", he added. "I want you to know that your president is a great leader who wants to take your country in the right direction — the direction of freedom, democracy, to restore economic prosperity," Pompeo said in remarks directed at the Venezuelan people.
• From Colombia, Guaidó is set to travel on to London, Brussels and Davos, Switzerland, to attend the World Economic Forum.  Guaidó would not confirm whether he will meet US President Donald Trump in Davos.
• Separately, Colombia and the US accused Maduro of harboring armed groups such as Colombia's Marxist-led National Liberation Army rebels and of having connections to everyone from drug traffickers to Lebanon's HEZBOLLAH movement. “After today’s event I think the world has it very clear that there is a dictatorship that finances terrorism,” Guaidó said.
• Pompeo blasted Maduro as an ally to terrorist groups that in contrast to other nations in Latin America is providing “a home” to Hezbollah. “This is unacceptable,” he said."[Maduro is] now running an operation that looks more like a cartel than anything else that one could describe. This isn't good for Venezuela, it's not good for the countries that are around Venezuela," Pompeo said.
• Pompeo kicked off the counter-terrorism conference at the General Santander Police Academy in Bogota – where 22 cadets were killed in a bombing last year – by decrying Maduro as an ally to terrorist groups including the National Liberation Army, the Colombian rebel group authorities say plotted the attack. “These groups must lay down their arms and the Maduro regime must be held to account for its support of them,” Pompeo said.
• The statements could open the possibility of the US including Venezuela in the list of states that support or finance terrorism.
• Maduro allies including Diosdado Cabello, head of the powerful National Constitutional Assembly, brushed off Guaidó’s international tour, dismissing the Bogota event as “a conference of terrorists.” “It doesn’t occupy any of our time, because in truth, it’s insignificant,” Cabello said.
• Guaidó told reporters the fight for democracy "finds alternatives, different pathways, and reinforced mechanisms." He said getting rid of Maduro is a "long-term strategy." "The dictators won't want to give up the power they've taken. ... We're much more like Syria than like Cuba ... in terms of migration, access to services, the inflation. There are no vaccines for our children. They are dying because of lack of food," Guaidó said.

(Al Jazeera: https://www.aljazeera.com/news/2020/01/pompeo-vows-support-meets-venezuela-Guaidó-colombia-200121061021165.html; The Wall Street Journal: https://www.wsj.com/articles/pompeo-meets-venezuelas-juan-Guaidó-vows-continued-u-s-support-11579565437; BBC News: https://www.bbc.com/news/world-latin-america-51169801; VOA News: https://www.voanews.com/americas/pompeo-promises-more-action-boost-venezuelas-Guaidó; Bloomberg: https://www.bloomberg.com/news/articles/2020-01-20/Guaidó-meets-foreign-backers-of-bid-to-oust-venezuela-s-maduro; AP: https://apnews.com/14d31109b0c60cb574a44d3ad8cd0fde; (PBS: https://www.pbs.org/newshour/world/Guaidó-meets-pompeo-condemns-venezuela-for-links-to-terrorism)

 

Colombia rolls out the red carpet for Guaidó

 “We are honored by your presence,” Colombian President Iván Duque told Guaidó during opening remarks in a stately reception. “You will always have a friend in Colombia.” Venezuela’s pro-Maduro Supreme Court has barred Guaidó from leaving the nation it’s unknown whether authorities will let him back again this time. “That risk always exists in Venezuela,” Guaidó said to a bevy of journalists as he headed into a meeting with Pompeo. Duque shot back at critics who have questioned Guaidó’s strength Monday, characterizing his efforts as “brave” in facing off against Maduro. “Maybe many speculate, ‘Why hasn’t Guaidó put an end to the dictatorship?’” Duque said. “This can’t be a discussion about individual capabilities. We know your bravery and that confronting a dictatorship with no limits is a task that goes beyond heroism.” (PBS: https://www.pbs.org/newshour/world/Guaidó-meets-pompeo-condemns-venezuela-for-links-to-terrorism

 

Guaidó to meet top EU diplomat in Brussels

Opposition leader Juan Guaidó, recognized as Venezuela's president by more than 50 countries including the United States and most European Union members, will come to Brussels on Wednesday to hold talks with the European Union's foreign policy chief Josep Borrell, Borrell told a news conference. (The New York Times: https://www.nytimes.com/reuters/2020/01/20/world/americas/20reuters-venezuela-politics-eu.html; Reuters, https://www.reuters.com/article/us-venezuela-politics-eu/venezuelas-Guaidó-to-meet-top-eu-diplomat-in-brussels-idUSKBN1ZJ1RX)

 

Guaidó to attend Davos forum

Venezuela’s opposition leader and acting president, Juan Guaidó will attend this week’s World Economic Forum in DAVOS, lawmaker Stalin Gonzalez told AFP on Monday. Guaidó is currently in Colombia, but Gonzalez, a Guaidó ally, said the National Assembly speaker will then head to Switzerland for the annual economic meeting that opens on Tuesday. Despite being banned from leaving the country by the regime of Nicolas Maduro, Guaidó surfaced in Bogota on Sunday, where Colombian President Ivan Duque welcomed him with full presidential honors. (The Japan Times: https://www.japantimes.co.jp/news/2020/01/21/business/venezuela-opposition-leader-juan-Guaidó-attend-davos-forum/#.XibkAMhKi8U)

 

European Parliament reaffirms support for Juan Guaidó, condemns Maduro coup attempt

The European Parliament has condemned the recent attempted coup to prevent Juan Guaidó from being re-elected President of the Venezuelan National Assembly. In a resolution adopted on Wednesday, the European Parliament strongly condemns the attempt by Nicolas Maduro’s regime to install pro-government candidate Luis Parra as new Chairman of the Venezuelan National Assembly on 5 January of this year. In the resolution, the European Parliament reaffirms their support for Juan Guaidó as the legitimate President of the National Assembly and interim President of Venezuela. MEPs deplore the recent grave violations, which are incompatible with legitimate election processes. The National Assembly of Venezuela is the only legitimately elected democratic body in the country, and its powers need to be respected, says the text. The European Parliament also recalls that the EU stands ready to support a genuine process towards a peaceful and democratic solution to the Venezuelan political crisis. The resolution calls on EU Foreign Policy Chief Josep Borrell to step up the European Union’s response to restore democracy in the country, including through targeted sanctions against individuals responsible for human rights violations, but also by extending these sanctions to their family members. The text was adopted by 471 votes to 101, with 103 abstentions. (European Parliament: https://www.europarl.europa.eu/news/en/press-room/20200110IPR70010/venezuelan-crisis-meps-reaffirm-their-support-for-juan-Guaidó)

 

Guatemala's new president cuts ties with Venezuela, as promised

Guatemala’s new President Alejandro Giammattei cut diplomatic ties with the regime of Nicolas Maduro on Thursday and ordered the closure of its embassy in Caracas. The conservative Giammattei, who took office on Tuesday, had already indicated he would cut ties upon assuming power. Maduro’s foreign minister Jorge Rodriguez, in a response on Twitter, accused Giammattei of bowing down to the administration of U.S. President Donald Trump. (Reuters: https://www.reuters.com/article/us-guatemala-politics-venezuela/guatemalas-new-president-cuts-ties-with-venezuela-as-promised-idUSKBN1ZF2SB)

 

Maduro says he’s still in control of Venezuela, ready for direct talks with the United States

Nicolás Maduro cast himself as the wily survivor of a dramatic, year-long struggle by the opposition at home and its allies in Washington to unseat him and said it’s now time for direct negotiations with the United States to end the political stalemate.

• He suggested a bonanza could be waiting for U.S. oil companies in this country should President Trump lift sanctions and press the reset button on U.S.-Venezuelan relations.
• Yet if anything, his words revealed the vast gulf that still exists between his authoritarian government and the opposition and U.S. officials who call him a dictator. His positions on key issues suggested no quick fix to the brutal humanitarian crisis that has led millions to flee poverty and hunger in this troubled socialist state.  Speaking in the ornate Miraflores presidential palace, Maduro did not display such willingness.
• He called any new presidential vote still years away. He also denied the assertions of U.S. and European diplomats and opposition negotiators that his government offered the opposition a deal including new presidential elections during talks brokered by Norway last year before they collapsed in the fall. He doubled down on his pledge to hold legislative elections this year — a vote his opponents insist he would use as a tool to further consolidate power. Maduro said he remained willing to sit down with Guaidó — but he seemed to dismiss the opposition’s key demand: that he exit in favor of a transitional government that would renovate the Supreme Court and national election councils to call new elections.
• Maduro seemed to dismiss his growing international isolation. “Do you want me to tell you the truth?” he asked, leaning in. “I don’t care even a little bit about what Europe does, or about what the U.S. does. We do not care at all. We only care about what we do … No matter how many thousand sanctions, they won’t stop us, or Venezuela.”
• Maduro repeatedly asserted his view that Trump had been misled by his policymakers, and he seemed baffled that Trump had courted North Korea’s Kim Jong Un but not him. “I believe Mike Pompeo has failed in Venezuela and is responsible for Donald Trump’s failure in his policy toward our country,” Maduro said. “I think Pompeo lives in a fantasy. He’s not a man with his feet on earth. I think Trump has had terrible advisers on Venezuela. John Bolton, Mike Pompeo, Elliott Abrams have caused him to have a wrong vision.”

U.S. officials have been considering more provocative steps to oust Maduro, including a naval blockade of Venezuelan oil destined for Cuba. Maduro said such a step would be “illegal,” but stopped short of calling it an act of war. Still, Maduro said significant changes could be in the offing if Washington opened a direct channel with him. (The Washington Post: https://www.washingtonpost.com/world/the_americas/maduro-says-hes-still-in-control-of-venezuela-ready-for-direct-talks-with-the-united-states/2020/01/18/7f609a6e-38a7-11ea-a1ff-c48c1d59a4a1_story.html)

 

Maduro’s foreign minister in Iran, starts 3-day visit

The Maduro regime’s foreign minister Jorge Arreaza began a three-day visit to Iran and was received by his Iranian counterpart Mohammad Javad Zarif, Venezuela's foreign ministry reported on its @CancilleriaVE Twitter account on 20 January. The Venezuelan ministry posted photos of Arreaza and Zarif shaking hands and embracing, with the words: "To start the work agenda that will be developed in Tehran, the foreign minister of the Islamic Republic of Iran, Javad Zarif @JZarif receives the [Venezuelan] foreign minister Jorge Arreaza @jaarreaza to have a bilateral meeting". (BN Americas: https://www.bnamericas.com/en/news/venezuela-foreign-minister-in-iran-starts-3-day-visit)

 

Maduro calls for Cuban ambassador to gain access to Venezuelan ministries

Nicolas Maduro said on state television that the Cuban ambassador to Caracas should have access to all the country's ministries in order to coordinate efforts. “For the Cuban ambassador, the doors of all ministries should be open for coordination,” TASS quoted Maduro as saying. He also added that Cuba could “count on Venezuela in everything.” (Teller Report: http://www.tellerreport.com/news/2020-01-21---maduro-calls-for-cuban-ambassador-to-gain-access-to-venezuelan-ministries-.ByKaINAQWI.html)

 

Colombia’s leading opposition senator to sue Guaidó

One of Colombia’s leading opposition figures said he would file criminal charges against Venezuelan opposition leader Juan Guaidó for claiming he was “financed through Venezuelan corruption money.” During a surprise visit to Colombia, Guaidó additionally called Senator Gustavo Petro an “accomplice” of Nicolas Maduro. Petro responded that “I am neither an accomplice of dictators nor an accomplice of “Los Rastrojos,” a Colombian drug trafficking organization that allegedly helped Guaidó cross the border last year. (Colombia Reports: https://colombiareports.com/venezuelas-opposition-chief-calls-colombias-leading-opposition-senator-accomplice-of-maduro/)

 

Venezuela attorney added to ICE Most Wanted list

Venezuelan attorney and businessman, Raul Antonio De La Santisima Trinidad Gorrin Belisario, has been added to the US ICE Most Wanted list for conspiracy to violate the Foreign Corrupt Practices Act and several counts of money laundering. The action follows an indictment filed August 16, 2017, in the Southern District of Florida, Gorrin’s subsequent escape from justice, and the updated FinCEN advisory of May 3, 2019, regarding widespread public corruption in Venezuela. The indictment alleges that Gorrin, 50, a Venezuelan citizen with a residence in Miami, Florida, paid millions of dollars in bribes to two high-level Venezuelan officials to secure the rights to conduct foreign currency exchange transactions at favorable rates for the Venezuelan government. Gorrin was last seen in Caracas, Venezuela, and currently remains at-large. ICE warns the public to not attempt apprehending the subject. If you have information about the whereabouts of this fugitive, immediately contact your local U.S. Immigration and Customs Enforcement (ICE) office or call the national hotline at 1-866-DHS-2-ICE as soon as possible. (News Americas Now: https://www.newsamericasnow.com/latin-america-news-venezuela-news-usice-wanted/)

 

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

June 13, 2019

International Trade

Miranda Governor announces Venezuela exported 10 tons of avocadoes and mangoes to Spain

Miranda State governor Hector Rodriguez has announced that Venezuela has exported 10 tons of avocadoes and mangoes to Spain, as a part of his state’s export drive. He made the announcement flanked by La Guaira Mayor José Alejandro Terán, and Hector Silva, President of the Miranda State Export Corporation. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/economia/venezuela-exporto-10-toneladas-de-aguacates-y-mango-a-espana/)

 

Oil & Energy

S&P withdraws ratings on Venezuela state oil company PDVSA

Standard and Poor’s withdrew its ratings On Venezuela's state oil company Petroleos de Venezuela S.A. after multiple events of default and the company repeatedly failed to submit its audited financials since 2017. “S&P Global Ratings withdrew its 'SD' issuer credit rating on Venezuela-based oil and gas company Petroleos de Venezuela S.A. (PDVSA). At the same time, we withdrew our 'D' issue-level rating on the company's debt.
The withdrawal of our ratings on PDVSA follows our repeated attempts to obtain timely information of satisfactory quality from the company in order to maintain our ratings in accordance with our criteria and policies. PDVSA has been unable to meet the coupon payments on its 2017, 2021, 2024, 2026, 2027, and 2037 notes since November 2017 (or we have been unable to obtain a confirmation that the bondholders had received the funds by that date). This constitutes an event of default under our methodology.” (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2479770&CategoryId=10717)

 

Venezuela’s massive blackout sparks boom in generator sales

As Venezuela's crisis deepens, the sale of electric generators is one of the few growth industries in the once-wealthy oil nation, whose residents struggle to get through each day as public services crumble. Millions of poor live at the mercy of Venezuela's unstable power grid, but middle- and upper-class residents able to scrape together enough dollars are buying backup generators to regain a normal life. Even this solution isn't foolproof. Gasoline shortages are creeping across the country, imperiling access to fuel for newly bought generators. A catastrophic power failure has led to a scramble for generators by residents and small businesses fearing another big outage could hit without warning, plunging their lives once again into chaos. Some have opted for small units costing a few hundred dollars that can pump out enough power to run a few appliances at a time, such as using the lights and water heater for a shower. A household living with all the amenities requires a large generator that can cost upward of US$ 1,000 — a small fortune in a country where the typical worker earns US$ 6.50 a month. The situation is especially dire in Maracaibo, once known as Venezuela's Saudi Arabia for being at the hub of the country's now-decaying oil industry. Power plants put out a fraction of their potential, and the lights have flickered on and off since late-2017, when a major transmission line burned up. The nationwide blackout in March took the lights out for eight days in Maracaibo and sparked massive looting that shuttered many businesses. Lines to fill up a car with gasoline stretch a mile and often require a two-day wait. (The Miami Herald: https://www.miamiherald.com/news/business/article231504798.html)

 

Shell stays course on Trinidad, Venezuela gas

Shell was asked by Trinidad and Tobago to study development options for an offshore natural gas field that straddles the maritime border with Venezuela, while it continues work on Venezuelan offshore gas, the European major told Argus. The cross-border Loran-Manatee field, estimated to hold about 10 trillion cf of gas, has long been seen by Trinidad as a key source of feedstock for its extensive gas-based industries, led by the 14.8mn t/yr Atlantic liquefaction complex. Trinidad's domestic gas production has been recovering since late 2017, but demand still outstrips supply, forcing costly curtailments. Loran-Manatee covers block 6 on Trinidad's side of the border, and block 2 on Venezuela's side. Shell acquired a 50% operating stake in Manatee, on Trinidad's side, from fellow major Chevron in June 2017. Chevron still holds the remaining 50%. Trinidad needs the gas to supply its industries, while Venezuela needs export revenue and has no infrastructure to monetize the gas on its own. Shell, like Chevron, has been careful to reiterate that its "activities relating to Venezuela are in strict adherence to all applicable laws, regulations, trade controls and sanctions." PDVSA has long neglected its abundant gas reserves in favor of oil, despite enormous suppressed demand from domestic refineries, power stations and petrochemical plants. Little is expected to change in the near term. Venezuela's oil-based economy is nearly paralyzed against the backdrop of a power struggle between the Maduro regime and the US-backed opposition. Under a transition government that National Assembly leader Juan Guaidó is campaigning to establish, legislative reforms would open the door for foreign oil companies to quickly tap dormant Venezuelan hydrocarbon deposits. (ARGUS: https://www.argusmedia.com/en/news/1920237-shell-stays-course-on-trinidad-venezuela-gas)

 

Commodities

Gas shortages, sky-high food prices plague Venezuelans amid economic crisis

Dozens of cars lined up alongside a gas station just after dawn on a highway in the Venezuelan city of Maracay, in the central state of Aragua. The drivers had been waiting for hours to buy gas, partaking in an all too common ritual in the hopes that when it was their turn, there would be enough gas left to fuel up. The wasted trips used up what little was left in his gas tank, and last Tuesday three men had to push his truck from the highway down a long hill to a pump, where he was finally able to fuel up. Venezuelans described lost days of work, anxiety at being unable to feed their families, and endless hours waiting in lines because of a gas shortage that's hitting the country with the world’s largest producible oil reserves. For Venezuelans who make it to a gas pump with fuel, filling a tank is basically free. Drivers tip gas station workers a small amount, but there is no real fixed price to fill your tank with the government keeping gas prices low but with the shortages it's a major problem. Hours-long lines for gas have become more and more common, especially in states within the interior of Venezuela, but the shortages have increasingly crept closer to Venezuela’s capital, hitting cities like Maracay. While Caracas has been largely spared the long lines thus far, Venezuelans in other states are in such desperate need of gas they'll sleep overnight outside gas stations. The gas shortages also meant disruptions to the once-reliable public transportation system in Caracas, lengthening commutes and exposing Venezuelans to more dangerous situations. They are also delaying food traveling from different states in the Venezuelan interior, leading to rising costs. Even when there is food available, the problem for many families is being unable to afford it with hyperinflation and low wages. Many Venezuelan families rely on government subsidized food-aid program, known in Spanish by its initials, CLAP. (NBC News: https://www.nbcnews.com/news/latino/gas-shortages-sky-high-food-prices-plague-venezuelans-amid-economic-n1016496)

 

Economy & Finance

Venezuela: hyperinflation leads to new banknotes for second time in a year

Venezuela is releasing new banknotes for the second time in less than a year, the central bank said on Wednesday, after hyperinflation eroded the effects of an August 2018 monetary overhaul meant to improve availability of cash. The Maduro regime last year cut five zeroes off the currency and prices. The move was supposed to ease shortages of cash that pushed most of the economy toward debit and credit card operations and put heavy strain on digital commerce platforms. Banknotes of 10,000, 20,000 and 50,000 bolivar denominations will begin circulating on Thursday to “make the payment system more efficient and facilitate commercial transactions”, the central bank said in statement. The largest of those bank notes, equivalent to about US$8, is more than the minimum wage of 40,000 bolivars a month. Following the 2018 overhaul, the highest denomination notes were 500 bolivars, which now would not be enough to buy a piece of candy. Inflation in May reached 815,000% after peaking earlier this year above 1.7m%, according to the opposition-run congress. (The Guardian: https://www.theguardian.com/world/2019/jun/12/venezuela-releases-new-bank-notes-bolivars-hyperinflation; Reuters, https://www.reuters.com/article/venezuela-economy/venezuela-adds-bigger-bank-notes-due-to-hyperinflation-idUSL2N23J167; Bloomberg, https://www.bloomberg.com/news/articles/2019-06-12/hyperinflation-forces-venezuela-to-roll-out-three-new-bills)

 

3M to take about US$ 160 million charge as it deconsolidates Venezuelan operations

3M Co said on Tuesday it would incur a pretax charge of about US$ 160 million, or 27 cents per share, in the second quarter, as the company suspended local operations in Venezuela. The maker of Post-it notes, and Scotch tape said in a regulatory filing that it deconsolidated its Venezuelan subsidiary as of May 31. (Reuters, https://www.reuters.com/article/us-3m-venezuela/3m-to-take-about-160-million-charge-as-it-deconsolidates-venezuelan-operations-idUSKCN1TC2AW)

 

Venezuela hit with default in Saint-Gobain's US$42 million award row

A Delaware court clerk entered a default against Venezuela and state-owned oil company Petróleos De Venezuela SA considering their silence in the French plastics company’s litigation aimed at registering and enforcing a 2017 arbitral award. (Law360: https://www.law360.com/articles/1168575/venezuela-hit-with-default-in-saint-gobain-s-42m-award-row)

 

Convicted Venezuelan official’s Palm Beach mansion goes for US$ 11 million in auction

For just US$ 11 million, a little piece of corrupt Venezuelan history was sold to the highest bidder last month, courtesy of the United States government. On May 30, a Palm Beach mansion forfeited by convicted money launderer and former national treasurer of Venezuela Alejandro Andrade was quietly auctioned off by Customs and Border Protection (CBP) agents. The 4,600 square-foot estate is a 5-bedroom, 4.5-bath beach getaway, complete with a spa and pool. Andrade bought the property, located at 1290 N. Ocean Blvd., for $8 million in 2013 and apparently let the place fall into disrepair. In 2016, neighbors complained that renovations of the home were disruptive and had been drawn out for too long. The home — the latest of Andrade's illegitimate riches to be auctioned off — is markedly more luxurious than the ex-treasurer's current digs in federal prison. In November, Andrade received a maximum ten-year sentence in a West Palm Beach federal court after pleading guilty to accepting a stunning $1 billion in bribes as part of an illicit foreign currency scheme. Andrade began his prison sentence in February. He is reportedly being kept in a low- to medium-security prison in Loretto, Pennsylvania, about 80 miles outside of Pittsburgh. (Miami New Times: https://www.miaminewtimes.com/news/government-auctions-off-palm-beach-mansion-owned-by-former-venezuelan-treasurer-alejandro-andrade-11195909)

 

Politics and International Affairs

Trump on disputed claim of Russian withdrawal from Venezuela: 'Ultimately I'm always right'

President Trump on Wednesday stood by his claim that Russia had withdrawn its forces from Venezuela despite the Kremlin's denials, asserting that he would be proven right in the end. Trump was asked during an Oval Office meeting with Polish President Andrzej Duda what he knows about Russia's involvement in Venezuela given the conflicting statements. "Well, let's just see who's right. You know what you're going to do? You're going to see in the end who's right," Trump said. "You just watch it, OK?" he added. "And we'll see who's right. Ultimately, I'm always right." Trump tweeted earlier this month that Russia had informed the U.S. that it had removed "most of their people from Venezuela." He offered no further information, and officials did not elaborate on Trump's announcement. The next day, a Kremlin spokesman told reporters that most of Russia's military specialists were still working in Venezuela. Trump on Wednesday described the situation in Venezuela as "in flux," and blamed the country's leaders for its descent into a worsening economic and humanitarian crisis. "It's a very sad thing," he said. "We're watching Venezuela very closely." (The Hill: https://thehill.com/homenews/administration/448247-trump-on-disputed-claim-of-russian-withdrawal-from-venezuela)

 

Secretary Pompeo urges world leaders to find solutions to Venezuela’s hunger crisis

Secretary of State Mike Pompeo implored world leaders to continue to stand against Venezuela’s Maduro’s regime amid the country’s ongoing economic and humanitarian crisis. At a World Food Prize event Monday, Pompeo highlighted the need for progress in agriculture to help hungry nations. He pointed to starvation in Venezuela as evidence. “More than 60% of the country goes to bed hungry each and every night, and many have resorted to rummaging through garbage bins to feed themselves and their children,” he explained. “Malnourishment is so widespread that Venezuelans refer to it as the Maduro diet.” Hunger in Venezuela is such problems that soup kitchens have rapidly cut down on food donations due to Maduro cutting off humanitarian aid. The Trump administration has sent aid to neighboring Colombia to get food to Venezuelans after aid being sent to Venezuela was blocked because Maduro claimed it was sent to embarrass his regime. Pompeo believes the U.S. government alone can’t solve the issue. “We all have an obligation to work each of these problems, it isn’t just a human tragedy when we see hunger,” he stated. “When it takes hold of a country, it can perpetuate a destructive cycle of crime and violence and instability.” (OAN: https://www.oann.com/secretary-pompeo-urges-world-leaders-to-find-solutions-to-venezuelas-hunger-crisis/)

 

Moldova's parallel leader warns incumbent against new Venezuela

Moldova’s newly declared Prime Minister Maia Sandu said her decision to form a parallel government in the former Soviet Republic is perilous and urged the former ruling party still claiming power not to turn the country into a second Venezuela. Speaking in a phone interview from Chisinau, the 47-year-old former World Bank adviser insisted that her administration -- assuming it survives -- will be wholly pro-European even though it depends on the support of pro-Russia Socialist Party. (Bloomberg, https://www.bloomberg.com/news/articles/2019-06-11/moldova-s-parallel-leader-warns-incumbent-against-new-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.

June 06, 2019

Oil & Energy

Venezuela's oil exports drop 17% in May as sanctions kick in

Venezuelan PDVSA’s oil exports took another hit in May, following a deadline for customers to wind-down purchases in order to comply with U.S. sanctions, according to documents from the state-run company and Definitive Eikon data. The energy firm’s exports of crude and refined products fell 17% in May from the previous month to 874,500 barrels per day (bpd), mainly due to difficulty in selling off barrels of upgraded crude that used to be bought by U.S. refiners. Venezuela has drained oil inventories since late January, when Washington imposed sanctions on PDVSA, to offset declining crude output, according to analysts. That allowed the firm to maintain exports around 1 million bpd for the following three months despite the measures. But some customers ended purchases of Venezuelan oil in late April to comply with sanctions, leaving PDVSA with an accumulation of upgraded oil and further reducing its portfolio of regular buyers, according to the reports and data. (Reuters, https://www.reuters.com/article/us-venezuela-oil-exports/venezuelas-oil-exports-drop-17-in-may-as-sanctions-kick-in-data-idUSKCN1T521H)

 

Maduro’s PDVSA to open Moscow office this month

PDVSA plans to open an office in Moscow this month, Interfax cited the Maduro regime's oil minister as saying on Thursday during a trip to the Russian city of St. Petersburg. Caracas said earlier this year that it was moving its Lisbon-based office to Moscow in order to safeguard the country's assets. (The Moscow Times: https://www.themoscowtimes.com/2019/06/06/venezuelas-oil-company-office-to-open-in-moscow-this-month-a65901)

 

Commodities

Maduro claims that Venezuela has 1.2 billion Euros in mineral reserves

In a recent televised speech, Nicolas Maduro claimed that Venezuela has 1.2 billion Euros in mineral reserves, including gold, diamonds, nickel, bauxite, iron, and others. He added that Venezuela has been legally certified to have 2236 tons of gold, according to the regime’s news agency. More in Spanish: (AVN, http://www.avn.info.ve/node/472987)

 

Economy & Finance

Venezuela defaults on gold swap with Deutsche

Venezuela has failed to make interest payments on a gold swap agreement valued at US$ 750M with Deutsche Bank (NYSE:DB), leading the lender to take possession of the precious metal used as collateral. The loan that Deutsche Bank made in 2016 was backed by 20 tons of gold as collateral. The agreement was set to expire in 2021 but was settled early due to the missed interest payments. Meanwhile, Venezuela opposition leader Juan Guaido's parallel government has asked the bank to deposit US$ 120M into an account outside of Nicolas Maduro's control; that amount represents the difference in price from when the gold was acquired to its current level. Venezuela's gold holdings, one of Maduro's few sources of capital to keep his regime going and his military forces loyal, have been shrinking. In March Venezuela's Central Bank missed a March deadline to buy back gold from CITIGROUP For almost US$ 1.1B. And earlier, the Bank of England refused to give back US$ 1.2B worth of Venezuelan gold. (Bloomberg, https://www.bloomberg.com/news/articles/2019-06-04/venezuela-is-said-to-default-on-gold-swap-with-deutsche-bank)

 

90% drop in construction industry reported here

Mauricio Brin, head of Venezuela’s construction industry chamber, reports that construction here has dropped by 90% since 2019; and is currently totally paralyzed. He added that most public works have been paralyzed since 2010, “because the state has been unable to finance” them. More in Spanish: (El Universal, http://www.eluniversal.com/economia/42003/reportan-caida-de-mas-de-90-en-el-sector-construccion)

 

Politics and International Affairs

Leaked audio reveals Pompeo saying US has struggled to keep Maduro opposition united

In a closed-door meeting last week, Secretary of State Mike Pompeo said the U.S. has struggled to keep the opposition to Venezuelan President Nicolás Maduro united, according to The Washington Post. “Our conundrum, which is to keep the opposition united, has proven devilishly difficult,” Pompeo said in audio obtained by the Post. “The moment Maduro leaves, everybody’s going to raise their hands and [say], ‘Take me, I’m the next president of Venezuela.’ It would be forty-plus people who believe they’re the rightful heir to Maduro.” The secretary of State made the remarks last week during a meeting with Jewish leaders, according to the Post, at one-point declining to answer a sensitive question because “someone’s probably got a tape recorder on.” Pompeo added that while he believed Maduro would inevitably be ousted, he “couldn’t tell you the timing.” The secretary of State said the problems in uniting the opposition have been present since he became director of the CIA in 2017 and that internal squabbles among Maduro’s enemies were preventing a successful uprising. Maduro, Pompeo said in the recording, "is mostly surrounded by Cubans," adding, "He doesn’t trust Venezuelans a lick. I don’t blame him. He shouldn’t. They were all plotting against him. Sadly, they were all plotting for themselves." The sentiments Pompeo expresses in the recording are “a sober but accurate view,” Shannon O’Neil, a Venezuela expert at the Council on Foreign Relations, told the newspaper. “They remain divided over how to take on the Maduro regime — whether or not to enter into dialogue, whether or not to engage with the military, whether or not to run a presidential candidate or boycott elections,” she told the Post. “They don’t even retweet each other.” Pompeo blamed the disarray among the opposition for the failure of the April 30 coup attempt by a group of soldiers, which fizzled out within 24 hours. The Washington Post said Pompeo made the comments at a meeting last week in New York of which it had a recording, despite the official US support for interim president Juan Guaido. Diosdado Cabello, the US-sanctioned head of Maduro’s puppet “Constitutional Assembly” quickly called Pompeo “incompetent” for failure to unite the opposition and for “believing in their lies”; and invited him to visit Venezuela. (The Washington Post: https://www.washingtonpost.com/...pompeo...venezuelas.../85385a33-8eae-4ba5-a9ac-6; The Hill: https://thehill.com/policy/international/americas/447159-pompeo-reveals-in-leaked-audio-us-has-struggled-to-keep-maduro; RT: https://www.rt.com/news/461180-pompeo-opposition-unite-fail/; France24: https://www.france24.com/en/20190606-pompeo-warns-divided-venezuela-opposition-report; and more in Spanish: El Universal, http://www.eluniversal.com/politica/42042/cabello-ravell-debe-pagar-30-mil-millones-de-bolivares-para-la-construccion-de-escuelas-para-ninos)

 

Venezuelan troops trained rebels to fire rockets, Colombia says

Venezuelan soldiers loyal to embattled Nicolas Maduro have trained members of South America’s most dangerous guerrilla force to use heat-seeking anti-aircraft missiles, according to Colombian authorities. National Liberation Army fighters were instructed in how to use the Russian-manufactured IGLA surface-to-air missile system, according to General Luis Navarro, Colombia’s top-ranking soldier. The Marxist force known as the ELN has long used Venezuelan territory as a refuge and has a close ideological affinity with Maduro’s socialist government, which the U.S. is trying to topple. Colombia’s intelligence services don’t know whether the ELN actually has acquired its own missile launchers, nor do they know whether the training was organized by a faction within Venezuela’s military or sanctioned at the highest levels in Caracas. The ELN received training clandestinely rather than at Venezuelan army bases, Navarro said. “These are weapons used by the Venezuelan armed forces,” he said in an interview at a Bogota air base. “We have the clear evidence and the necessary intelligence to affirm that the ELN is considered as part of the defense of the revolution of the Maduro regime.” Now, the military intelligence report says, 45% of the ELN’s fighters - including its commanders - are hiding in Venezuela and receiving protection from Maduro. Venezuela’s Socialist regime has over the years acknowledged that the ELN enters the country but denies supporting the rebel group. “The ELN considers Venezuelan states bordering Colombia as their strategic rearguard,” said Navarro, adding that growth in the ELN and FARC ranks was “a risk and we have to contain them.” The ELN is present in 12, or roughly half, of Venezuela’s states, according to Insight Crime, a Washington-based research organization that monitors Latin America, a report recently underscored in Twitter by the US Southern Command. (Bloomberg: https://www.bloomberg.com/news/articles/2019-05-06/venezuelan-troops-trained-rebels-to-fire-rockets-colombia-says; SOUTHCOM: https://twitter.com/Southcom/status/1136314020162654209; Reuters: https://af.reuters.com/article/worldNews/idAFKCN1T62LM)

 

U.S. Bars Cruises to Cuba in Retaliation for Venezuelan Role

The U.S. State Department is barring cruise ships from going to Cuba as part of a crackdown on travel to the island, citing government repression and its role in the humanitarian crisis in Venezuela. “The United States will no longer permit visits to Cuba via passenger and recreational vessels, including cruise ships and yachts, and private and corporate aircraft,” the department said Tuesday. The action threatens to cut off a burgeoning tourist trade with Cuba that got underway during the Obama administration. Major cruises operators, including market leader Carnival Corp. and No. 2 Royal Caribbean Cruises Ltd., have regular itineraries delivering thousands of American tourists to Havana and other Cuban cities. The decision caught industry analysts and executives by surprise. Even as the threat of a Trump crackdown loomed, cruise lines had been adding sailings to the island, and Havana was making plans to triple the size of its cruise-ship terminal. (Bloomberg, https://www.bloomberg.com/news/articles/2019-06-04/u-s-to-bar-cruise-ships-from-cuba-in-retaliation-for-venezuela)

 

Brazilian President accepts credentials of Guaido’s envoy

President Jair Bolsonaro accepted on Tuesday the credentials of Maria Teresa Belandria, the envoy to Brazil of Venezuela’s National Assembly speaker, Juan Guaido, who is recognized by Brasilia as that country’s “legitimate and interim” head of state. Belandria arrived in Brazil in February, less than a month after Guaido took oath as Venezuela’s interim president following the National Assembly’s refusal to accept the legitimacy of Nicolas Maduro, who was sworn in for a new six-year term in January that the opposition and dozens of countries do not recognize following what they called “fraudulent” elections in May 2018. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2479470&CategoryId=10717; Reuters, https://www.reuters.com/article/us-venezuela-politics-brazil/brazils-bolsonaro-formally-recognizes-venezuelan-opposition-envoy-idUSKCN1T5312)

Venezuelan reporters push past police to enter Parliament

A group of reporters backed by several opposition lawmakers forced their way into Venezuela’s National Assembly after more than a month of being kept out by police. Led by the National Press Workers Union (SNTP), the reporters broke through the security cordon by pushing past some officers lined up in front of an entrance to the Federal Legislative Palace. On hand were several lawmakers who helped the journalists get into the building after a brief argument with the police. “Today, by a decision, and I have to say it, of the lawmakers of the National Assembly, we have finally been able to enter the building and do the work we are supposed to do,” said the president of the SNTP, Marco Ruiz. The legislators welcomed the press, while accusing the Maduro regime of seeking to censor the news. (Latin American Herald Tribune, http://wwwaht.com/article.asp?ArticleId=2479467&CategoryId=10717)

 

Putin says Russia and China want situation in Venezuela to stabilize, denies military support for Maduro

Russian President Vladimir Putin said on Wednesday after talks in Moscow with Chinese leader Xi Jinping that Moscow and Beijing wanted the situation in Venezuela to stabilize. Putin also said that Moscow has no plans to send troops to shore up Nicolás Maduro. Asked about US President Donald Trump's tweet earlier this week that Moscow had informed Washington it had pulled its personnel out of Venezuela, Putin said that Russian experts come and go to service Russian-made weapons bought by Caracas. "We aren't building any military bases there, we aren't sending troops there, we have never done that," Putin said. "But we have fulfilled our contract obligations in the sphere of military-technical cooperation, and we will keep doing that." He warned US military intervention in Venezuela would be a disaster. Even Washington's allies did not support such a course of action, Putin said. (Reuters: https://www.reuters.com/article/us-venezuela-politics-putin-xi/russia-and-china-want-situation-in-venezuela-to-stabilize-putin-idUSKCN1T61VC; TRT World: https://www.trtworld.com/americas/putin-says-no-plans-to-send-troops-venezuela-crisis-26278)

 

Lavrov confirms Russia’s contacts with Venezuelan opposition

Russian Foreign Minister Sergey Lavrov said in a recent interview that Moscow hasn't ended contact with Venezuela's opposition. "As for your question about working with the opposition, we are not quitting this work. As I said, in Venezuela we responded several times to requests for contact. These contacts took place", Lavrov said in an interview with RBC. "During these conversations, we reaffirmed our position in favor of a national dialogue, expressed disagreement with the fact that in response to the call by the 'Montevideo Mechanism' to start such a dialogue, when President [Nicolas] Maduro agreed, [opposition leader Juan] Guaido haughtily refused", he said. (Sputnik International: https://sputniknews.com/russia/201906061075669431-russia-venezuela-oslo-talks/)

 

Xi says China will play 'constructive role' on Venezuela

China will work with the international community to play a constructive role with Venezuela and help the country to get back on a normal development path as soon as possible, Chinese President Xi Jinping told Russian media. Xi told TASS news agency and Rossiyskaya Gazeta newspaper that China opposes foreign interference, unilateral sanctions, the use of force, or threats of the use of force, when it came to Venezuela. (Reuters, https://www.reuters.com/article/us-venezuela-politics-china/xi-says-china-will-play-constructive-role-on-venezuela-idUSKCN1T606W)

 

Venezuela, now a top source of U.S. asylum claims, poses a challenge for Trump

Nearly 3.9 million people have fled Venezuela, with millions more expected to follow this year, according to William Spindler, spokesman for the United Nations refugee agency. As a result, Venezuela has overtaken China to become the No. 1 country of origin for those claiming asylum in the U.S. upon arrival or shortly after, with nearly 30,000 Venezuelans applying for asylum with U.S. Citizenship and Immigration Services in 2018. Nearly one-third of claims filed with the agency come from Venezuelans, the most of any country by far, according to the latest data. That has created a dilemma for the Trump administration in which its foreign policy, which considers Maduro’s government an oppressive dictatorship, is colliding with its immigration policy, which has sought aggressively to hold down the number of people admitted to the country through asylum. President Trump has railed against asylum applicants, saying that many are engaging in a “hoax” and a “big, fat con job.” Many Central American asylum seekers, who are Trump’s primary target, fall into a different category than the Venezuelans. But because of the foreign policy focus on Venezuela, the asylum seekers from that country pose a more direct challenge to the administration’s anti-immigration agenda. Only about 2% of those granted asylum in the U.S. are Venezuelan, according to a Homeland Security report in March. While approval rates appear to be increasing, about 50% of Venezuelan asylum claims are denied, on average. Those denied asylum are at risk of deportation back to their home country. The administration has resisted a bipartisan push — including from Florida Republican Sen. Marco Rubio, an avowed hawk on Venezuela — to grant Venezuelans the right to stay in the U.S. under so-called temporary protected status. That program, designed to deal with people fleeing natural disasters or civil unrest, offers recipients protection from removal and the right to work legally in the U.S. But administration officials have sought to dismantle the program as part of their wider efforts to reduce immigration. In fact, the Trump administration has stepped up deportations of Venezuelans. U.S. Immigration and Customs Enforcement deported 336 Venezuelans last year, far fewer than the tens of thousands of Central Americans being removed each year, but a 35% increase over the year prior. Sen. Richard J. Durbin (D-Ill.), who has pushed for granting temporary status to Venezuelans, said Trump’s policy is counterproductive. “Blocking Venezuelan refugees from seeking safe haven and forcing them to return home at this very dangerous time plays right into Maduro’s hands,” Durbin said. (Los Angeles Times: https://www.latimes.com/politics/la-na-pol-trump-venezuela-asylum-immigration-20190605-story.html)

 

Maduro court forces publication to pay US$ 4.7 million to alleged socialist drug lord

Venezuela’s Supreme Court, run by loyalists to socialist dictator Nicolás Maduro, ordered the online news outlet La Patilla to pay senior chavista official, television show host, and alleged cartel chief Diosdado Cabello US$ 4.7 million for aggregating a 2015 article in which Hugo Chávez’s former security chief accused Cabello of drug trafficking.  La Patilla is a Venezuelan online publication that posts anti-socialist material, usually curating news from other sources rather than publishing original reports, as well as entertainment and lifestyle news. The story that Cabello sued over was an original report in the Spanish newspaper ABC revealing that the former security chief, Leamsy Salazar, had left Venezuela and was under DEA protector, willing to testify to Cabello being the head of the Cartel de los Soles (“cartel of the suns”). The Cartel de los Soles is thus named because it is made up of members of the Venezuelan military, who wear sun medallions on their uniforms. It is an intercontinental cocaine trafficking operation, according to American law enforcement. Cabello responded to the report with a lawsuit rampage targeting La Patilla, two other Venezuelan outlets, ABC, and the Wall Street Journal. A U.S. court threw the case against the Wall Street Journal out in 2018 because, the judge ruled, Cabello did not provide any evidence that disproved “that he is, in fact, under investigation for his potential involvement in drug trafficking and money laundering activities.” Responding to the ruling, La Patilla owner Alberto Ravell called it “judicial terrorism.” Cabello is one of several senior Maduro officials under severe U.S. sanctions. The U.S. Treasury accused him in a 2018 statement announcement sanctions on him of being “directly involved in narcotics trafficking activities.” A June 2018 report revealed that the Treasury had confiscated US$ 800 million in assets that Cabello had hidden in the United States. (Breitbart: https://www.breitbart.com/the-media/2019/06/05/venezuela-court-forces-publication-to-pay-4-7-million-to-alleged-socialist-drug-lord/)

 

How Maduro 'spent thousands of state funds on Cuban rituals'

Nicolas Maduro allegedly spent thousands of state funds on religious rituals in Cuba, according to a former intelligence official. Hugo Carvajal, former director of the country’s military intelligence, lashed out at Maduro in an open letter. Responding to a claim from the Venezuelan ruler that he was dismissed for gross misconduct, Carvajal made several explosive claims about Maduro’s religious beliefs and financial conduct. He wrote: "The people should also know that your religious sacrifice rituals in Cuba were paid by your minister of finance, who on at least one occasion sent a briefcase with US$ 500,000 in cash to Havana in a PDVSA plane." Maduro was accused of performing Santeria rituals in Cuba while leaving ordinary citizens with desperate shortages back in Venezuela. Carvajal continued: “How dare you call yourself Christian when you follow any belief you come across? “You are a devout Santero, follower of Sai Baba and who knows what other religion. I suppose that you must by some means justify all the atrocities you have committed against the Venezuelan people.” Maduro was raised as a Roman Catholic and claims to maintain his Christian beliefs – but some fear his relationship with Cuba is religious as well as political. The Santero faith combines Roman Catholicism and Yoruba beliefs. (Express: https://www.express.co.uk/news/world/1136689/venezuela-crisis-maduro-cash-cuba-ritual-santeria-spt)

 

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.