October 08, 2019

International Trade

Passport maker De La Rue flies in turnaround specialist

De La Rue has appointed turnaround specialist Clive Vacher as chief executive as the banknote and passport maker contends with a series of setbacks. Vacher takes over immediately from Martin Sutherland, whose departure was announced after a May profit warning, but faces significant challenges alongside new chairman Kevin Loosemore. De La Rue’s share price has more than halved since the profit warning, with the company also taking a one-off hit for non-payment from Venezuela and an investigation led by Britain’s Serious Fraud Office. Vacher was previously CEO at semiconductor business Dynex Power and has held senior positions with industrials Pratt & Whitney, Rolls-Royce and General Dynamics. De La Rue is emphasizing Vacher’s credentials in business transformation and operational turnarounds, which may prick up the ears of all shareholders, said Russ Mould of investment broker AJ Bell, referring to activist investor Crystal Amber Fund. (Reuters, https://www.reuters.com/article/us-de-la-rue-ceo/passport-maker-de-la-rue-flies-in-turnaround-specialist-idUSKBN1WM0EG)

 

Oil & Energy

EXXON MOBIL bars use of oil tankers linked to Venezuela: sources

EXXON MOBIL Corp this week banned the use of vessels linked to oil flows from Venezuela in the last year, putting new pressure on the U.S. sanctioned country and on global crude freight rates. The decision by world’s largest publicly traded oil producer to ban the Venezuela-linked tankers should affect about 250 vessels. (Reuters, https://www.reuters.com/article/us-exxon-mobil-shipping-venezuela/exxon-mobil-bars-use-of-oil-tankers-linked-to-venezuela-sources-idUSKBN1WJ20E)

 

PDVSA flooding Cuba with stranded oil

At least three Venezuelan fuel tankers are heading towards Cuba, part of a flotilla meant to free up domestic storage space while defying a US campaign to cut off Venezuela's oil supply to its political ally. Up to 3mn bl of refined products and heavy crude that Venezuelan state-owned PDVSA is dispatching to Cuba in the first half of October should help partially alleviate a critical storage deficit that has forced down Venezuelan production toward 500,000 b/d. The storage shortage is a domino effect of US sanctions that are scaring away most buyers, with a few exceptions such as Russia's state controlled ROSNEFT and Spain's REPSOL that takes supply in exchange for its domestic production.  Although Venezuela has long supplied Cuba with oil under preferential terms, the wave of new shipments — equivalent to 200,000 b/d in the first half October — quadruple the volume that PDVSA had been delivering in recent months. Cuba has about 160,000 b/d of oil demand, with roughly 50,000 b/d covered by domestic production. The shipments should help the Cuban government to ease oil shortages that are crippling the island's transportation and electricity generation. But some are also likely to be resold, a PDVSA official said. (Argus: https://www.argusmedia.com/en/news/1989349-pdv-flooding-cuba-with-stranded-oil)

 

Brimming storage and no buyers: Venezuela’s oil production tanks

Venezuela’s oil production took another hit in recent days, as the country struggles with brimming storage tanks and no buyers. PDVSA slashed output in the Orinoco Belt to just 200,000 bpd, according to Bloomberg, after averaging roughly double that for much of this year. The lack of space in storage forced production cuts, including at joint venture projects, where output has been more stable. Sources told Bloomberg that the SINOVENSA blending facility would be idled for at least a week. Output had held up in recent months. While monthly totals bounce around from month to month, Venezuela’s production was stable at 750,000 bpd from April on. However, after months of relatively stable output, production began to slide again in August, falling to 712,000 bpd, according to OPEC’s secondary sources. Venezuela may now be on the verge of another decline. According to Bloomberg, the country only exported 495,000 bpd in September, and in the last week production fell to 510,000 bpd following the temporary shutdown of upstream heavy oil operations. Worse, the industry is in disrepair. Widespread pillaging, a worker exodus, lack of equipment, and a lack of capital plague oil operations. Luis Pacheco, who sits on the PDVSA board appointed by Guaidó, estimates that the industry needs US$ 120 billion in order to turn things around. There is almost no chance of even a faction of that without a change in the political context. (Oil Price: https://oilprice.com/Energy/Crude-Oil/Brimming-Storage-And-No-Buyers-Venezuelas-Oil-Production-Tanks.html)

 

Venezuela detains local head of oil joint venture with China: sources

Venezuelan authorities have arrested the president and two other officials in a corruption investigation at state oil company PDVSA’s SINOVENSA joint venture with China National Petroleum Corp (CNPC), oil sector and intelligence sources said on Saturday. The three detainees, in the latest round-up in the struggling and graft-plagued oil sector, are Venezuelan. The detention of SINOVENSA President Alberto Bockh in eastern Anzoátegui state on Thursday was confirmed to Reuters by five PDVSA sources, an intelligence source and another person in the local oil sector familiar with the case. It was unclear what the precise accusations were against him and the other two detained SINOVENSA employees. (Reuters, https://www.reuters.com/article/us-venezuela-oil/venezuela-detains-local-head-of-oil-joint-venture-with-china-sources-idUSKCN1WK0F5)

 

Oil-rich Venezuela and Russia come to aid of ally Cuba, but its energy woes persist

A flotilla of shipments from Venezuela gave Cuba some respite this week from crippling fuel shortages in the wake of tougher U.S. sanctions, while Russia’s prime minister pledged during a visit to the island on Friday to help develop its energy sector. But support from two of its closest allies looks unlikely to resolve Cuba’s energy problems and the government has extended many of the energy-saving measures it had introduced over the past month. Havana warned on Sept. 11 it had not secured enough shipments of refined fuels, such as gasoline and diesel, for the rest of the month due to sanctions imposed by the administration of U.S. President Donald Trump in retaliation for its support for Nicolas Maduro. In response to the shortages, Cuba swiftly deepened austerity measures it had introduced since an economic meltdown in Venezuela, its principal supplier, choked off its energy imports. (Reuters, https://www.reuters.com/article/us-cuba-economy-analysis/oil-rich-venezuela-and-russia-come-to-aid-of-ally-cuba-but-its-energy-woes-persist-idUSKBN1WJ2GS)

 

Inside Look at Venezuela’s Oil Belt

Five decades ago, Venezuela pumped 3.7 million barrels of oil a day. Now, it’s only producing a little over 700,000 barrels a day. Bloomberg’s Jessica Summers and Lucia Kassai discuss the collapse of the nation’s oil industry, the theft that goes on at Orinoco field, the lack of security and what it will take for a recovery. (Bloomberg, https://www.bloomberg.com/news/audio/2019-10-04/this-week-in-commodities-inside-look-at-venezuela-s-oil-belt)

 

Economy & Finance

ADOBE Is cutting off users in Venezuela due to US sanctions

ADOBE is shutting down service for users in Venezuela in order to comply with a US executive order issued in August that prohibits trade with the country. The company sent out an email to customers in Venezuela today to let them know their accounts would be deactivated and posted a support document further explaining the decision. In the document, Adobe explains: “The U.S. Government issued Executive Order 13884, the practical effect of which is to prohibit almost all transactions and services between U.S. companies, entities, and individuals in Venezuela. To remain compliant with this order, ADOBE is deactivating all accounts in Venezuela.” Users will have until October 28th to download any content stored in their accounts and will lose access the next day. To make matters worse, customers won’t be able to receive refunds for any purchases or outstanding subscriptions, as ADOBE says that the executive order calls for “the cessation of all activity with the entities including no sales, service, support, refunds, credits, etc.” The news is not only disastrous to designers and freelancers who rely on the company’s software like PHOTOSHOP and ILLUSTRATOR, but to NGOs and media outlets that will no longer be able to use software like INDESIGN, ACROBAT, and READER. The ban will also affect all free services like BEHANCE, ADOBE’s portfolio site, which requires a Creative Cloud account. It’s an unfortunate situation that highlights a downside of ADOBE’s subscription-based model — users lose access to the company’s products immediately as soon as the option to pay for them is removed, no matter how long they’ve been a customer. ADOBE says it’ll continue to monitor the US sanctions for more developments, but until then, accounts will remain deactivated. (Financial Times: https://www.ft.com/content/0c6ddd44-e95d-11e9-a240-3b065ef5fc55: The Verge: https://www.theverge.com/2019/10/7/20904030/adobe-venezuela-photoshop-behance-us-sanctions)

 

Maduro’s top envoy to Japan blasts freeze of bank accounts

The Maduro regime's ambassador to Japan rebuked a Japanese bank for effectively freezing his and other diplomats' accounts out of concerns that their use ran afoul of U.S. economic sanctions recently imposed on the country. The accounts, frozen since September, concern five with SMBC Trust Bank belonging to the ambassador, his wife and other diplomats. Ishikawa said that the accounts could not be used for Internet banking as well as withdrawing and transferring money via ATMs. In response to his inquiry, a bank official told Ishikawa that the accounts were frozen as a result of economic sanctions by the Trump administration against Nicolas Maduro’s regime. A senior official with the bank's Hiroo branch later visited the embassy and explained that their dollar accounts were frozen because of concerns that certain transactions ran against President Donald Trump's executive order signed Aug. 5. Ishikawa is a second-generation Japanese Venezuelan born to Japanese parents. His wife is Japanese, and they have four children with Japanese nationality. A bank official notified Ishikawa on Oct. 3 that his yen account would be reactivated, but not his U.S. dollar account. (The Asahi Shimbum: http://www.asahi.com/ajw/articles/AJ201910070027.html)

 

Politics and International Affairs

Russia boosts military ties with Maduro

Russia’s deputy prime minister Yuri Borisov met with Venezuela’s embattled incumbent Nicolas Maduro in Caracas on Saturday as the two countries boosted their military ties in Moscow’s apparent sign of continued support for the embattled dictator who is resisting an intense Western pressure to quit. The meeting between Borisov and Maduro was held in the framework of the high-level intergovernmental commission (CIAN) between Caracas and Moscow, Russia’s official news agency reported. Maduro thanked Russia for the military cooperation between the two countries, saying his nation had a solid defense grid to resist any outside aggression. He said that the two sides also renewed their agreements on the military-technical area during the meeting between the leaders. He also indicated that the two countries have made progress in advancing agreements on the exploration of oil and gas. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2484158&CategoryId=10717; Reuters, https://www.reuters.com/article/us-russia-venezuela/russian-deputy-prime-minister-in-venezuela-to-support-maduro-idUSKCN1WK0CF; https://www.reuters.com/article/russia-venezuela/russian-deputy-pm-to-meet-venezuelas-maduro-interfax-idUSL5N26Q0D8)

 

Venezuelans Find Medical Refuge in Colombia

The Arauca pier is already busy before sunrise. Hundreds of people arrive in boats from Venezuela to get medical attention, and to be sure they do, they must be among the earliest to stand in the long lines that quickly begin to form. One of the first buildings they come across in the city, which is the capital of Arauca province and is only separated from Venezuela by the swiftly flowing Arauca River, is that of the Colombian Red Cross. From 4:00 am, when the humidity and heat of the area are not yet so fierce, dozens of people, many with babies in their arms, line up outside the medical center waiting for the doors to open at 7:00 am with hopes of being among the 120 to be assigned their turn. Some have cardiac problems, others suffer respiratory illnesses and there are also pregnant women who, despite their pain, know that this is the only way to get good medical care. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2484150&CategoryId=10717)

 

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.

April 11, 2019

Oil & Energy

Venezuela reports collapse in oil supply, tightening global market

Venezuela’s oil output sank to a new long-term low last month due to U.S. sanctions and blackouts, the country told OPEC, deepening the impact of a global production curb and further tightening supplies. In a monthly report released on Wednesday, the Organization of the Petroleum Exporting Countries said Venezuela told the group that it pumped 960,000 barrels per day (bpd) in March, a drop of almost 500,000 bpd from February. Venezuela’s production figure brings its numbers closer to outside estimates, which have been saying the country’s economic collapse has taken a bigger toll on its oil industry. Output in Venezuela, once a top-three OPEC producer, has been declining for years due to economic collapse. In March, supply dropped due to U.S. sanctions on state oil company PDVSA designed to oust President Nicolas Maduro, and power blackouts. (Reuters: https://www.reuters.com/article/us-oil-opec-report/venezuela-reports-collapse-in-oil-supply-tightening-global-market-opec-idUSKCN1RM1BT)

 

Oil edges higher as Venezuela output collapses

Oil prices rose to their highest in more than five months Wednesday as a sharp decline in Venezuelan oil production more than offset the effect of a weekly report showing another increase in U.S. inventories of crude oil. West Texas Intermediate futures, the U.S. oil benchmark, ended 1% higher at US$ 64.61 a barrel on the New York Mercantile Exchange, the highest since Oct. 31. (The Wall Street Journal: https://www.wsj.com/articles/oil-edges-higher-as-venezuela-output-collapses-11554911649)

 

Venezuela congress authorizes parallel PDVSA board to negotiate foreign debt

Venezuela’s opposition-controlled National Assembly on Tuesday allowed a parallel board of directors of state-run oil company PDVSA to negotiate foreign debt ahead of a looming payment deadline that could put its crown jewel overseas asset, U.S. refiner CITGO, at risk. The board’s new head will be former PDVSA executive Luis Pacheco, said lawmaker Elias Matta, head of the assembly’s energy commission. The expanded board would also be able to represent the company overseas, Matta said in congress. The ad hoc board, which the Assembly on Tuesday expanded to nine members from five, is part an effort by opposition leaders who have disavowed the regime of Nicolas Maduro to control PDVSA’s overseas assets. Maduro’s ruling Socialist Party continues to control the company’s day-to-day operations. The move will allow the board to decide whether to make a US$ 71 million interest payment due April 27 on PDVSA’s 2020 bond, which is backed by a 49% stake in CITGO, said opposition lawmaker Elias Matta, the head of the Assembly’s energy commission. “They will evaluate if they are going to pay the bonds. That is now their decision,” Matta said in a telephone interview, adding that the board would have to inform the Assembly should it decide to pay. “We will do everything we have to do to protect the republic’s assets.” (Reuters, https://www.reuters.com/article/us-venezuela-politics-pdvsa/venezuela-congress-allows-parallel-pdvsa-board-to-negotiate-foreign-debt-idUSKCN1RL2CQ; https://www.reuters.com/article/venezuela-politics-pdvsa/venezuela-national-assembly-approves-expansion-to-pdvsa-ad-hoc-board-idUSL1N21R14F)

 

Two of Venezuela's four crude upgraders restart after blackout: document

Two of Venezuela’s four crude oil upgraders, which are necessary to process the country’s extra-heavy crude into exportable grades, have restarted after halting activities due to blackouts in March. The PETROCEDENO upgrader, a joint venture between state oil company PDVSA, France’s TOTAL SA and Norway’s EQUINOR ASA, and the PETROPIAR joint venture with U.S. CHEVRON Corp both restarted, according to the document. The upgraders, together with the Petrosinovensa mixing facility, were set to produce 298,000 barrels of upgraded crude on Tuesday. (Reuters, https://www.reuters.com/article/us-venezuela-oil/two-of-venezuelas-four-crude-upgraders-restart-after-blackout-document-idUSKCN1RL2FE)

 

Economy & Finance

Maduro is cut off from US$ 400 million in cash held at the IMF

As Nicolas Maduro steps up his search for cash overseas, another door is slamming shut. The International Monetary Fund suspended the Venezuelan strongman’s access to almost US$ 400 million of special drawing rights, citing political chaos since National Assembly President Juan Guaidó claimed in January that he was the nation’s rightful leader, said two people familiar with the matter. Venezuela already whittled its SDR holdings down from almost US$ 1 billion in March 2018. The IMF’s caution marks at least a temporary defeat for Maduro’s government as it seeks to gather money held abroad to stave off a devastating economic collapse that could undermine key support from top military commanders. The SDRs represent one of the regime’s last remaining sources of cash. Almost two-thirds of Venezuela’s US$ 9 billion in foreign reserves are in the form of gold, which has been difficult to liquidate because of U.S. sanctions. Guaidó’ s camp has all but declared victory in the battle over who has access to the SDRs. Ricardo Hausmann, a Harvard professor and economic adviser to Guaidó, said the IMF is safeguarding the assets until a new government takes over. “Those funds will be available when this usurpation ends,” he said in an interview at Bloomberg headquarters in New York. Venezuela’s relationship with the IMF has long been contentious. In 2007, then-President Hugo Chavez pledged to cut ties with the fund. That plan was never carried out because leaving the IMF risked triggering a technical default in which investors could demand immediate repayment on some bonds. Since then, Venezuela has defaulted on more than US$ 10 billion in payments. (Bloomberg: https://www.bloomberg.com/news/articles/2019-04-10/imf-freezes-venezuela-funds-as-members-debate-who-s-president)

 

Venezuela removes eight tons of gold from central bank

Venezuela removed eight tons of gold from the central bank’s vaults last week, and the cash-strapped socialist regime is expected to sell the bullion abroad as it seeks to raise hard currency in the face of U.S. sanctions, a lawmaker and one government source said. With sanctions imposed by Washington choking off revenues from exports by state oil company PDVSA, Nicolas Maduro’s increasingly isolated regime has turned to sales of Venezuela’s substantial gold reserves as one of the only sources of foreign currency. The government source said the central bank’s reserves had fallen by 30 tons since the start of the year before U.S. President Donald Trump tightened sanctions, leaving the bank with around 100 tons in its vaults, worth more than US$ 4 billion. At that rate of decline, the central bank’s reserves would nearly disappear by the end of the year, leaving Maduro’s regime struggling to pay for imports of basic goods. (Reuters, https://www.reuters.com/article/us-venezuela-gold-exclusive/exclusive-venezuela-removes-eight-tonnes-of-gold-from-central-bank-sources-idUSKCN1RL247)

 

Fund sues Venezuela for US$ 26 million in unpaid bonds, interest

Global fund manager PHARO has sued Venezuela for US$ 26 million in unpaid bond principal and interest, a U.S. court filing showed, as legal claims by creditors piled up against this nation whose economy is suffering from a hyperinflationary collapse. In a complaint filed with the New York State Supreme Court late on Monday, PHARO said two funds that it controls own US$ 1.5 million in bonds that matured in 2018 and more than US$ 200 million in bonds set to mature in October 2019. Venezuela failed to pay interest and principal on the 2018 bonds and missed three interest payments on the 2019 bonds, it added. (Reuters, https://www.reuters.com/article/us-venezuela-bonds/fund-sues-venezuela-for-26-million-in-unpaid-bonds-interest-idUSKCN1RL25D)

 

Venezuela unemployment nears that of war-ruined Bosnia, IMF says

Venezuela’s unemployment rate is soaring to levels unseen in the world since the Bosnian war came to an end more than two decades ago, according to the International Monetary Fund. Joblessness will reach 44.3% in 2019 and will slam nearly half of Venezuela’s labor force in 2020, the IMF said in its World Economic Outlook published on Tuesday. Bosnia and Herzegovina’s joblessness was 50% in 1996, immediately after its 3 1/2-year domestic war, according to the multilateral’s database. The Venezuelan depression is among the deepest economic catastrophes ever suffered by a nation outside of wartime. This year alone, the Andean nation’s output will shrink by a quarter -- the most worldwide since the 2014 start of the Libyan civil war, according to the IMF. The contraction has become so large that it’s generating “sizable drag” on growth not just in Latin America, but also in emerging markets as a whole. (Bloomberg, https://www.bloomberg.com/news/articles/2019-04-09/venezuela-unemployment-nears-that-of-war-ruined-bosnia-imf-says)

 

Politics and International Affairs

OAS votes to recognize Juan Guaidó’ s ambassador

The members of the Organization of American States (OAS) voted on Tuesday to recognize Juan Guaidó’ s ambassador as the country's official representative to the organization. The move solidifies Nicolas Maduro's exit from the regional body, further isolating Venezuela from its neighbors. The OAS is the second multilateral organization in the hemisphere to recognize representatives designated by Guaidó, after the Inter-American Development Bank accepted Ricardo Hausmann as its Venezuelan envoy last month. With 18 votes in favor, nine against, six abstentions and one absence, the OAS confirmed Gustavo Tarre as Venezuela's new delegate. After a heated debate, the OAS permanent council made the decision by a vote of 18 in favor, nine against, and six abstentions. One delegate was absent. The council asked OAS Secretary General Luis Almagro to send the text to UN Secretary General Antonio Guterres. The text states that "Nicolas Maduro's presidential authority lacks legitimacy and his designations for government posts, therefore, lack the necessary legitimacy." The countries that voted against Tuesday's decision were Venezuela, Antigua and Barbuda, Bolivia, Dominica, Grenada, Mexico, Saint Vincent and the Grenadines, Suriname and Uruguay.  (DW: https://m.dw.com/cda/en/oas-votes-to-recognize-juan-Guaidós-ambassador/a-48269376; France24: https://www.france24.com/en/20190409-oas-recognizes-Guaidó-envoy-until-new-venezuela-polls)

 

 ‘You shouldn’t be here’: U.S. pushes U.N. to pull Maduro envoy’s credentials

Vice President Mike Pence on Wednesday urged the United Nations to revoke the credentials of Nicolás Maduro’s ambassador to the world body, portraying him as a loyalist to the country’s disputed president, Nicolás Maduro, and to a government that has allowed crime, violence and starvation to rise. In a 20-minute speech to the United Nations Security Council, Mr. Pence called for a formal recognition of Juan Guaidó as the rightful leader of Venezuela, which he called “a failed state — and as history teaches, failed states know no boundaries.” Mr. Pence turned to Maduro’s representative, Samuel Moncada Acosta, telling him, “You shouldn’t be here.” “You should return to Venezuela and tell Nicolás Maduro that his time is up,” Mr. Pence said. “It’s time for him to go.” The Council meeting addressed the situation in Venezuela, which officials and experts are increasingly describing as a humanitarian crisis that has led about 3.5 million citizens to flee the country. Mr. Pence also accused China and Russia of meddling in efforts to remove Mr. Maduro. While “Russia and China continue to obstruct at the Security Council,” Mr. Pence said, “rogue states like Iran and Cuba are doing all they can to prop up the Maduro regime.” But on Wednesday, he did not give a firm answer when asked by a reporter where the United States would draw a line on Russia’s involvement. He also did not give a timeline when asked if the possibility of American military intervention, an option long played up by administration officials, was drawing closer as conditions in Venezuela worsened. In briefings held before Mr. Pence arrived to speak, (The New York Times: https://www.nytimes.com/2019/04/10/world/americas/pence-venezuela-un-envoy.html; Bloomberg, https://www.bloomberg.com/news/articles/2019-04-10/pence-demands-un-expel-venezuela-s-ambassador-support-Guaidó)

 

U.N. Aid Chief says 'very real humanitarian problem' in Venezuela

United Nations aid chief Mark Lowcock told the U.N. Security Council on Wednesday that there is a "very real humanitarian problem" in Venezuela and that the world body is ready to do more if it gets more help and support from all parties. "The scale of need is significant and growing. The United Nations is working in Venezuela to expand the provision of humanitarian assistance," Lowcock said. "We can do more to relieve the suffering of the people of Venezuela, if we get more help and support from all stakeholders." He briefed the council on a recent U.N. report on the situation that estimates about a quarter of Venezuelans are in need of humanitarian assistance and painted a dire picture of millions of people lacking food and basic services. Some 3.4 million Venezuelans have left the country, Lowcock said. This number was expected to rise to some 5 million by the end of the year, said Eduardo Stein, the joint envoy for Venezuelan refugees and migrants for the U.N. refugee agency and the U.N. migration agency. Lowcock stressed the need for humanitarian efforts to be neutral, impartial and independent. Lowcock said the number of U.N. staff in Venezuela had nearly doubled since 2017 to some 400 and that U.N. agencies were working in all 24 Venezuelan states. (The New York Times: https://www.nytimes.com/reuters/2019/04/10/world/americas/10reuters-venezuela-politics-un.html)

 

US, EU at odds over Venezuela sanctions

The crisis in Venezuela is causing divisions between the Trump administration and EU governments, which have failed to back Washington's call for tougher sanctions against Nicolas Maduro. Disregarding evidence presented at a NATO summit last week indicating that Maduro is digging in with the aid of Russia, the EU decided against widening Venezuelan sanctions during a foreign ministers’ meeting Monday. “The EU is against implementing sanctions on Venezuela as a country,” said Spanish Foreign Minister Josep Borrel at a press briefing following the meeting. He left open the possibility of applying individual sanctions against some members of Maduro’s government. Last week, the United States expanded sanctions to block Venezuela’s oil exports by targeting its tanker fleet, declaring that 34 of its vessels could be embargoed or seized through new measures announced by the U.S. Department of Energy. Europe, on the other hand, continues receiving oil from Venezuela despite crippled production. Spain’s oil company REPSOL recently reached an agreement with the cash-strapped Maduro government to pay down the company’s US$ 2 billion investment with added shipments of oil. And almost 100 Spanish companies continue operating in Venezuela, including one of Spain’s largest banks, BBVA, which could be vulnerable to future sanctions. Borrel has said he discussed Spain’s financial stake at a meeting with U.S. Secretary of State Mike Pompeo last week in Washington and complained about administration plans to toughen the embargo on Cuba. Spain’s large presence in Venezuela — where the Spanish expatriate community numbers about 250,000 dual nationals — makes Madrid the lead government on EU policy toward the Latin American country. Italy and Portugal also have substantial expatriate communities and commercial interests in Venezuela including investments by Italy’s oil company ENI. The Trump administration used last week’s NATO summit to argue Venezuela presented a new threat from Russia, which has supplied sophisticated arms and military advisors to revamp Maduro’s air force, armored units and special forces. Borrel has said Russia’s presence in Venezuela is small and should not constitute a “problem” for NATO. Spanish Prime Minister Pedro Sanchez has said that Spain would “roundly oppose” any U.S. military action against Venezuela and that he would urge the rest of the European Union to do the same. Spanish officials say they are doubling down on efforts to find a political solution through negotiations between Maduro and Guaidó. Speaking from Brussels Monday, Borrel said Maduro had requested an “activation” of the EU-led Montevideo group, which includes Mexico, Uruguay and other Latin American governments offering mediation. (VOA: https://www.voanews.com/a/us-eu-at-odds-over-new-sanctions-against-venezuela/4869617.html)

 

Honduran, Nicaraguan, Venezuelan leaders not invited to Salvadoran's swearing-in

El Salvador’s incoming president Nayib Bukele said on Tuesday he would not be inviting the leaders of Honduras, Nicaragua and Venezuela to his June 1 inauguration after criticizing them as illegitimate rulers. In a Twitter post, the 37-year-old Bukele confirmed news reports that invitations were not being extended to Juan Orlando Hernandez, president of neighboring Honduras, Daniel Ortega, president of Nicaragua, or Venezuelan President Nicolas Maduro. Bukele, who won an election in February, did not say why the presidents would not be asked, but he has previously criticized all three as men who did not deserve to be in power due to controversies that have clouded their administrations. (Reuters, https://www.reuters.com/article/us-elsalvador-inauguration/honduran-nicaraguan-venezuelan-leaders-not-invited-to-salvadorans-swearing-in-idUSKCN1RM0BD)

 

Maduro says Venezuela ready to receive international aid

Nicolas Maduro has said his country was ready to receive international aid following a meeting with the Red Cross chief, as this nation plunged into a new round of blackouts. "We confirm our readiness to establish cooperation mechanisms for international assistance and support," Maduro said on Twitter on Tuesday. Maduro, who denies that the current situation in Venezuela can be described as a humanitarian crisis, reiterated after the meeting that collaboration with the International Committee of the Red Cross (ICRC) should respect "the Venezuelan legal order." An ICRC delegation led by its president Peter Maurer has been here since Saturday and is due to finish its visit on Wednesday. The ICRC said last Friday in a statement it was "concerned by the serious impact that the current situation has on Venezuelans, especially those who do not have access to basic services." (Al Jazeera: https://www.aljazeera.com/news/2019/04/maduro-venezuela-ready-receive-international-aid-190410083550252.html)

 

Red Cross regains access to Venezuela jails, military prisons

The International Committee of the Red Cross has regained access to prisons in Venezuela, including highly guarded military facilities where dozens of inmates considered political prisoners are being held, as strongman Nicolas Maduro seeks to counter mounting criticism of his government’s human rights record. International Red Cross President Peter Maurer on Wednesday wraps up a five-day visit to Venezuela, where the Geneva-based group is among international organizations trying to carve out a space to deliver badly needed humanitarian aid and technical assistance free of the winner-take-all politics contributing to the country’s turmoil. The group had been denied access in Venezuela at least since 2012. The renewed visits in Venezuela began March 11 when a Red Cross delegation visited a model prison in Caracas, the Simon Bolivar Center for the Formation of New Men. Eighty-seven foreigners are being held. But more significant was the visit two weeks later to the military-run Ramo Verde prison outside Caracas, which holds 69 people the opposition considers political prisoners. Most people held at the Ramo Verde are military personnel accused of plotting to overthrow Maduro. Many more, including five oil executives with U.S. passports, are being held in the basement jail of the military counterintelligence headquarters in the capital. In another attempt to counter growing criticism, Maduro last month welcomed a delegation sent by the United Nations’ High Commissioner for Human Rights. He previously had called s999uch visits a politically biased threat to Venezuela’s sovereignty. (NBC News: https://www.nbcnews.com/news/latino/red-cross-regains-access-venezuela-jails-military-prisons-n992981)

 

Raúl Castro pledges Cuba will never abandon Venezuela

Raúl Castro has promised that Cuba will never abandon its leftist ally Venezuela despite US “blackmail”, even as the Trump administration threatened more sanctions over its support. In a speech to the national assembly, the head of the Cuban Communist party said the island had been increasing defense preparedness in recent months in view of mounting US hostility. The island nation had also been adopting economic measures to contend with the Trump administration’s tightening of the decades-old US trade embargo, Castro told legislators. “We will never abandon our duty of acting in solidarity with Venezuela,” Castro said. “We reject strongly all types of blackmail.” Shortages of basic goods have increased recently, including flour, eggs and chicken, with the state even reducing the size and circulation of its newspapers due to a lack of newsprint. The situation could worsen further in coming months in view of the tightening US trade embargo, Castro warned. (The Guardian: https://www.theguardian.com/world/2019/apr/10/raul-castro-cuba-never-abandon-venezuela)

 

U.S. ready to take on Russia and other 'foreign powers' in Venezuela, John Bolton says

President Donald Trump's national security adviser John Bolton has warned nations seen as obstacles to U.S. plans for Latin America that they must leave Venezuela and stop defending the socialist government opposed by the Trump administration. Responding to Tuesday's Newsweek article discussing the recent arrival of Russian, Chinese and Iranian planes intended to support Maduro and his government, Bolton told radio host Hugh Hewitt that "President Trump is determined not to see Venezuela fall under the sway of foreign powers."  "Look, our objective is a peaceful transition of power to Juan Guaidó and the opposition," Bolton said during Wednesday's program. "But let’s not forget we’ve got between 40,000 to 50,000 American citizens in Venezuela." "We’ve got countries, as you mentioned, Colombia and Brazil on the border with millions of Venezuelan refugees who have come across. We’ve got terrorist organizations like the ELN [National Liberation Army] and FARC [Revolutionary Armed Forces of Colombia] who threaten Colombia," he added. "We’re going to protect American national interest, and Maduro and his cronies ought to know that President Trump is very serious when he says all options are on the table." (Newsweek: https://www.newsweek.com/bolton-russia-china-iran-venezuela-powers-1392304)

 

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.

October 10, 2016

International Trade

All border passes with Colombia now open again to cargo transit

Colombia’s tax and customs authority (DIAN) has announced that all seven border passes with Venezuela are now open to cargo transit in all forms of transportation. More in Spanish: (Notitarde, http://www.notitarde.com/Reabren-los-siete-pasos-fronterizos-con-Colombia/Economia/2016/10/09/1028717/)

 

Zulia governor says 880 tons of shrimp were exported to Europe, Asia and the US

Zulia state Governor Colonel Francisco Arias Cardenas has announced that 880 tons of shrimp worth US$ 2.640 million were exported in 44 containers, to the European Union, Asia and the United States, under the auspices of the Venezuelan government. He also said shrimp feed worth US$ 60 million would be imported in 2016-17 in order to increase shrimp production by 25,000 tons. More in Spanish: (Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/venezuela-exporta-880-toneladas-camarones-mercados-europa-asia-y-eeuu; El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/venezuela-exporta-880-toneladas-de-camarones-a-eur.aspx)

 

Minister announces 1.380 million aluminum containers have been exported to Brazil

Basic Industries Minister Juan Arias reports that 1.380 million aluminum containers from state company ALENTUY were exported to Brazil this year. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/industrias/alentuy-exporta-a-brasil-un-millon-380-mil-envases.aspx#ixzz4Mg8TE0lW)

 

Logistics & Transport

Airlines want their money back from Venezuela

Airlines have a question for U.S. regulators: Mind if we collude a bit? The carriers have made an unusual request of the U.S. Department of Transportation: They want antitrust immunity for one year so they can collectively discuss ways to retrieve US$ 3.8 billion currently held hostage by Venezuela’s deep economic slide. Since 2013, Venezuelan officials have virtually halted the repatriation of past ticket sales made in bolivars, the local currency. Inflation has soared and foreign currency reserves have dwindled to under $ 12 billion, as the government of President Nicolas Maduro imposed various currency exchange rates and the economy fell into disarray and food shortages. As a result, the flow of money homeward has slowed to a trickle for many multinational corporations operating in Venezuela. (Bloomberg, http://www.bloomberg.com/news/articles/2016-10-07/airlines-ask-permission-to-break-antitrust-law-but-only-a-little)

 

Oil & Energy

US$ 60 oil not ‘unthinkable’ this year, Saudi Energy Minister says

Saudi Arabia’s energy minister Khalid al-Falih said that he was optimistic major oil producers could agree to cut production by November and that it wasn’t “unthinkable” that crude prices could rise another 20% this year to US$ 60 a barrel. The minister’s words confirmed a decisive shift in policy by the Organization of the Petroleum Exporting Countries toward a return to market intervention—a role the oil cartel seemed to abandon two years ago when it refused to step in to prop up sinking prices. A production cut is meant to reorder the supply and demand landscape and push prices up during a historic market slump. Falih is attending a conference in Istanbul this week that has become a meeting point for major oil producers to try to hammer out a tentative agreement to reduce output. It follows an agreement in principle reached in Algiers last month. “I think a band would be able to make sure the ceiling can accommodate,” Falih said, adding that because of demand uncertainties “OPEC needs to make sure we don’t kill too much and create a shock.” In Istanbul, Falih is joining an effort to get non-OPEC members to participate in output cuts, including Russia, which produces more crude oil than any other country. He confirmed he is meeting with Russia’s energy minister this week to discuss cooperation and said non-OPEC producers should “absolutely” participate in efforts to balance the market. Falih said the time to act seems to have arrived. “I think market forces have shifted significantly between 2014 and now,” he said. (The Wall Street Journal: http://www.wsj.com/articles/saudi-energy-minister-optimistic-on-oil-production-deal-14760861599

 

… and President Maduro is now in Turkey for energy conference

President Nicolas Maduro is now in Istanbul to take part in the World Energy Congress, and has met with the city’s governor Vasip Sahin. More in Spanish: (Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/presidente-maduro-llega-estambul-para-participar-congreso-mundial-energ%C3%ADa; El Universal, http://www.eluniversal.com/noticias/economia/maduro-turquia-estamos-luchando-por-estabilidad-del-mercado_621804; El Mundo, http://www.elmundo.com.ve/noticias/petroleo/industria/presidente-se-reunio-con-autoridades-turcas.aspx; http://www.elmundo.com.ve/noticias/petroleo/industria/ochenta-paises-participaran-en-congreso-mundial-de.aspx)

 

PDVSA seeks to issue another US$ 4.7 billion in debt to pay off suppliers

State oil company PDVSA plans to issue up to US$ 4.7 billion in private debt in order to pay off pending bills from suppliers. The move could overshadow its attempt to roll over US$ 5.3 billion in bonds that mature during 2017 in order to relieve its payment flows over the next few months. A presentation from PDVSA to oil companies indicates that the company has been in touch with son 63 service providers and has offered to issue “promissory notes” to compensate for unpaid bills. It is not clear that the companies actually received the notes. In its latest financial report, PDVSA showed that in May-September this year it provided US$ 1.1 billion in “promissory notes” to 10 companies that provide transportation, drilling and maintenance. The companies include WEATHERFORD and HALLIBURTON, plus smaller local firms such as PROAMBIENTE and ELECNOR. Most local companies have been willing to receive the notes. More in Spanish: (Infolatam: http://www.infolatam.com/2016/10/06/pdvsa-planea-emitir-deuda-por-us4-700-milllones-para-pagar-facturas-vencidas/)

 

Venezuela oil price jumps above US$ 40 on OPEC output cut

The price Venezuela receives for its mix of medium and heavy continued rising aggressively, closing above US$ 40 for the first time since August after OPEC announced an agreement for an oil output cut. 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 October 7 was US$ 41.58, up US$ 2.77 from the previous week's US$ 38.81. According to Venezuelan government figures, the average price in 2016 for Venezuela's mix of heavy and medium crude is now US$ 33.58 for the year to date. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2422699&CategoryId=10717)

 

REPSOL extends line of credit for joint venture in Venezuela

State oil company PDVSA and REPSOL have signed an agreement that calls for the Spanish energy company to provide a line of credit of up to US$ 1.2 billion to expand oil production here. REPSOL CEO Josu Jon Imaz and PDVSA chief Eulogio Del Pino put their signatures to the financing deal for the Petroquiriquire joint venture during a ceremony at the presidential palace, Miraflores. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2422675&CategoryId=10717; Bloomberg, http://www.reuters.com/article/us-venezuela-pdvsa-repsol-idUSKCN127272; http://www.reuters.com/article/venezuela-pdvsa-repsol-idUSL2N1CC1QG)

 

Expert says recovery of Venezuela's major dam is insufficient

The water level of Guri dam, Venezuela’s major electric power supplier, hit 263 meters above sea level last week. This figure is slightly above that recorded in 2015, yet insufficient to overcome challenges of the national power grid, says Jesús Rafael Pacheco, of Simón Bolívar University (USB). According to state power corporation CORPOELEC, the dam’s water level stood at 261.28 meters above sea level, a 1.72 meter raise on September 28^th 2015. Pacheco adds that the level “is eight meters below the value the dam should have if thermoelectric plants were in good conditions.” (El Universal, http://www.eluniversal.com/noticias/daily-news/expert-terms-insufficient-recovery-venezuelas-major-dam_620638)

 

PDVSA plans to reactivate 931 oil wells in Lake Maracaibo

State-run oil company Petroleos de Venezuela (PDVSA) and Chinese petroleum equipment manufacturer Shandong KERUI Group Holding Co. signed a partnership agreement to repair and connect 624 oil wells in Lake Maracaibo, north-western Zulia state, with an initial investment of US$ 30 million by the Chinese company. Production of crude oil and gas is expected to increase by 22,600 barrels per day (Mbbls/d) and 13 million cubic feet (MMCF), respectively. At the same time, PDVSA and the Bulgarian-Venezuelan Consortium are currently in talks to carry out activities similar to those agreed with KERUI and interconnect 307 wells in the country's largest lake. Should the talks be successful, the Bulgarian investor group ALECO will finance over US$ 100 million. The wells are distributed in nine production units, and with this addition, crude oil and gas production is expected to raise by 28 Mbbls/d and 30 MMCFPD of gas, respectively. (El Universal, http://www.eluniversal.com/noticias/daily-news/pdvsa-plans-reactivate-931-oil-wells-lake-maracaibo_621564)

 

Venezuela promises to become Latin America´s largest gas exporter

Eulogio Del Pino, Minister of Petroleum and Mining, says that Venezuela will be the largest exporter of gas in Latin America, able to produce 1,200 million cubic feet MMSCFD and 28,000 barrels per day (Mbbls/d) of condensate gas. He says that output will be reached under the Mariscal Sucre project, which encompasses four giant deposits located in northern Paria Peninsula (east Venezuela): Dragón, Patao, Mejillones and Río Caribe. "The Cardón project, developed in the Gulf of Venezuela, is producing some 600 million cubic feet per day (MMCFPD) in less than a year. Dragon Field will start producing 300 million MMCFPD and combined with the other deposits that make up the Mariscal Sucre Project, they will reach more than 1,000 MMCFPD in the coming years”, Del Pino explains. (El Universal, http://www.eluniversal.com/noticias/daily-news/venezuela-promises-become-latam-largest-gas-exporter_620943)

 

Commodities

The face of hunger and malnutrition in Venezuela

Venezuela is in the midst of a severe economic crisis. The country, though one of the richest in natural resources, has been called the worst economy of 2016 by the International Monetary Fund, and its inflation rate could reach 700% by the end of the year. Today, the biggest concern for Venezuelans is the food shortage, together with rampant crime and the lack of medicine. Every day, thousands of people reach supermarkets or shops, sometimes as early as dawn, patiently waiting in long lines just to buy a few pieces of basic food items, such as rice or flour, at a lower price set by the government. The alternative to "colas" (food lines in Spanish) can be found in expensive supermarkets, where only the wealthy can afford to shop. The others rely on "bachaqueros", or food smugglers who re-sell on the street subsidized goods at much higher prices. In the slums of Caracas, the situation is difficult. Many families are unable to provide two to three meals a day for their children. Lunch often consists of a banana or a piece of bread. As a result of this climate of uncertainty and helplessness, crime is rising fast in Venezuela, especially in Caracas, already ranked in 2015 as the most violent city in the world. In the rest of the country, the food crisis is worse, and health workers have noted increased cases of malnutrition within the poorest segments of the population. (Aljazeera: http://www.aljazeera.com/indepth/inpictures/2016/10/face-hunger-malnutrition-venezuela-161007055723064.html)

 

Economy & Finance

Venezuela PDVSA's bonds tumble after low participation in swap

State oil producer PDVSA's bonds dropped sharply on Friday after the company extended a deadline for its US$ 5.3 billion debt swap offer due to low bondholder participation, signaling that investor reluctance could scuttle the operation. PDVSA on Thursday moved the initial deadline from Oct. 6 to Oct. 12 and said that considerably less than half of outstanding bonds had been tendered. The swap requires more than 50% participation to go through.

The company's 2017 bond maturing in April fell 4.025 points to a bid price of 80.600, while the 2017N bond sank 2.050 points to a bid price of 84.150. The two bonds are a part of the swap operation. Venezuela's sovereign bonds were also down across the board, with the 2018 bond declining 6.769 points to a price of 78.306. (Bloomberg, http://www.reuters.com/article/venezuela-pdvsa-debt-idUSL2N1CD0RF, http://www.bloomberg.com/news/articles/2016-10-07/pdvsa-extends-debt-swap-deadline-on-low-bondholder-participation)

 

Venezuela says US$ 7 billion bond swap to continue as ConocoPhillips sues PDVSA for fraud,

State oil company Petroleos de Venezuela (PDVSA) says it will carry on with an ongoing US$ 7 billion bond swap, in spite of a legal action attempted before a Delaware court Thursday by a former partner, US oil giant ConocoPhillips, which objects to the use of U.S.-based refining company CITGO as collateral in the negotiation. This is the first legal challenge against the swap in the U.S., coming just days after the opposition dominated National Assembly of Venezuela, the country’s legislative arm, criticized the negotiation: The Assembly has said it will not approve the deal, theoretically making it illegal. “In relation with the action presented Thursday October 6th by ConocoPhillips in Delaware, in which it objects to a financing operation by CITGO Holding as well as the current bond swap operation, Petróleos de Venezuela, S.A. (PDVSA) informs that, firstly, the financing operations object of that action are perfectly legal and legitimate and, secondly, the new claims presented by ConocoPhillips lack any foundations whatsoever,” the company here said in a press release. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2422640&CategoryId=10717; Bloomberg, http://www.reuters.com/article/us-venezuela-pdvsa-debt-conocophillips-idUSKCN127284; http://www.reuters.com/article/venezuela-pdvsa-debt-response-idUSL2N1CD1ET)

 

…and Maduro orders PDVSA to sue US newspaper after failure of $7 billion swap

President Nicolas Maduro has ordered his Oil Minister, Eulogio Del Pino, who also serves as president of the state oil company Petroleos de Venezuela SA (PDVSA), to sue the owners of a Venezuelan newspaper "directed from Miami" for "spreading false information" about the oil company. "I have given the order for violating the constitution and forming part of a campaign to destroy PDVSA's financial and development possibilities as part of a dirty campaign against Venezuela," said Maduro during a broadcast that must be carried by every radio and television channel in the country. He did not name the newspaper he described as "garbage" and said that it had a small issue of "just two thousand" copies, which is close to the final print runs of the Latin American Herald Tribune's predecessor The Daily Journal in Caracas.  (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2422720&CategoryId=10717)

 

Minister claims foreign investment here was US$ 12 billion in 2016

Foreign Trade and Investment Minister Jesús Faría reports that foreign investments in gas, oil and mining here is US$ 12 billion, from countries such as China, Canada, South Africa and Russia. He also says he has met with around 70 businessmen from Germany, France and Portugal, to push forward on 5 projects in the areas of pharmaceuticals, agribusiness, ports and infrastructure. More in Spanish: (Notitarde, http://www.notitarde.com/-Inversion-foranea-suma-12000-millones-en-2016/Economia/2016/10/09/1028714/; El Universal, http://www.eluniversal.com/noticias/economia/traeremos-300-millardos-fugados_621710;El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/faria--inversiones-extranjeras-suman--12-mil-millo.aspx)

 

An unlikely winner in Venezuela crisis: high-end real estate

Building luxury apartments or corporate office towers might seem like an odd investment in an economy reeling from a deep recession, triple-digit inflation and chronic product shortages. Unless it's Venezuela. The combination of soaring prices and exchange controls that prevent businesses from buying dollars has made high-end real estate an attractive way for companies to protect the value of revenue earned in the increasingly worthless bolivar currency. Cranes clutter the skyline of the Caracas municipality of Chacao, home to the capital's financial district and most of its embassies, despite a backdrop of huge supermarket lines that have become a symbol of the country's economic decay. Las Mercedes, a neighborhood developed in the 1950s as an exclusive residential zone that is now filled with garish restaurants and bars, is also awash in real estate development. (Reuters, http://www.reuters.com/article/us-venezuela-construction-idUSKCN12715A)

 

Politics and International Affairs

National Assembly President predicts Supreme Tribunal will quash recall process

National Assembly President Henry Ramos Allup has charged that the Supreme Tribunal will issue a ruling that strips legislators of parliamentary immunity, and also seeks to quash a recall referendum against President Nicolas Maduro. Ramos said: “Indeed, next Tuesday they will perpetrate these two crimes against the Constitution: To eliminate immunity in order to put critical legislators in jail should we criticize this shameful regime that is killing Venezuela; and second, to kill, murder the recall referendum…because the government knows that if that instrument is used, it will have to leave office if rejected popularly”. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/politica/2016/octubre/6/171378=presidente-de-la-an-afirma-que-el-tsj-promovera-sentencia-para-eliminar-el-fuero-de-los-diputados-opositores)

 

Opposition leader Capriles vows to end Maduro rule

Henrique Capriles told the BBC that 80% of the population wanted change and the opposition would be able to collect 4 million signatures and force a recall referendum. "We are having the worst situation in our history," he said. Oil accounts for most of Venezuela's export revenues but plummeting prices and economic mismanagement have brought the country to economic collapse.  Last month pro- and anti-government demonstrations attracted hundreds of thousands of people. Opposition supporters blame President Nicolas Maduro for Venezuela's economic crisis and accuse the electoral commission of delaying a referendum that could shorten his stay in power. But Capriles said he believed the opposition can force a referendum to take place. "We have to collect signatures," he said. "It's four million people and that is going to be so important that it is going to open the door for the referendum and the people are going to vote and we are going to have a new government in our country.  It looks very difficult to have it, but so important that it is going to be very difficult for Maduro to avoid the referendum." (BBC News: http://www.bbc.com/news/world-latin-america-37582569)

 

Cabello says regime will seek to charge Leopoldo Lopez with homicide

Lieutenant Diosdado Cabello, First Vice President of the ruling United Socialist Party (PSUV) says that relatives of 43 people killed during protests called by opposition leader Leopoldo Lopez in early 2014 are moving to charge him with murder at local courts. Cabello called Lopez a “murderer”. A peaceful demonstration called by Lopez on 12 February 2014 ended in violence, and set off a wave of protests through the following months, in which 43 died. Venezuela’s opposition terms Lopez’ arrest “political”, while Cabello is insisting that “Leopoldo Lopez must remain in prison. He has to pay for those 43 dead.” More in Spanish: (Infolatam: http://www.infolatam.com/2016/10/06/cabello-dice-que-solicitaran-que-el-opositor-lopez-sea-acusado-de-homicidio/)

 

Opposition will demand that Elections Council fix imbalance in voting machine distribution

Juan Carlos Caldera, who represents the Democratic Unity (MUD) opposition at the National Elections Council says that Maduro’s opponents are drawing up a list of polling places in order to protest with the Council about imbalances in the distribution of polling machines that must be installed for the planned 20% voter signature drive to call for the President’s recall. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/mud-reclamara-cne-desequilibrio-maquinas-centros-votacion_621442)

 

Argentina's FM advises President Maduro "to be careful with his words"

Argentine Foreign Minister Susana Malcorra told Venezuela’s President Nicolas Maduro that “it is necessary to be careful with the use of words, especially as a leader,” after Maduro called his Argentine counterpart Mauricio Macri as a “political hitman” and “imperial puppet.” Malcorra said Maduro’s aggressive speech stems from the “intrinsic tensions” Venezuela is going through, and added that both Heads of State “view the reality from different angles, yet that is not a reason to disrespect another president.” “There are people who get angry and believe that we can intervene with a magic wand and solve those problems. When the democratic charter is invoked as in the case of Mercosur (Common Market of the South) or OAS (Organization of American States), consensus from all Member States is needed. Achieving it is not that simple; the alternative is assisting Venezuelans in finding a solution,” she added. (El Universal, http://www.eluniversal.com/noticias/daily-news/argentinas-advises-president-maduro-careful-with-his-words_621593)

 

OAS Almagro, Brazil's Temer agree on "need" for recall vote in Venezuela

Luis Almagro, Secretary General of the Organization of American States (OAS), has visited Brazilian President Michel Temer, and both of them talked about the “need” for a recall vote in Venezuela this year, as sought

by the opposition political sector, yet put off for 2017 by the country’s electoral authorities. (El Universal, http://www.eluniversal.com/noticias/daily-news/almagro-brazils-temer-agree-necessity-recall-vote-venezuela_621536)

 

Brazilian Foreign Minister charges Venezuela increases cocaine exports

Brazil’s Foreign Minister José Serra says “Venezuela’s situation is increasingly worrying”, and adds that this country is “increasing cocaine exports”. He said the fact that the Vatican has joined the search for talks between the Maduro regime and its opposition has created hope, but added “it will be complicated to arrive at a formula for a transition”; and said “a way out can be found, but it will not be simple”. More in Spanish: (El Universal: http://www.eluniversal.com/noticias/politica/canciller-brasileno-venezuela-exporta-cada-vez-mas-cocaina_621462)

 

Venezuela to rebuild housing in Cuba in the wake of hurricane Matthew.

A Venezuelan navy vessel has left port here with 375 tons of construction equipment and material to help rebuild housing in Cuba following the path of hurricane Matthew. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/venezuela-envia-maquinas-para-reconstruir-viviendas-cuba_621747)

 

Pope names new Venezuelan cardinal

Pope Francis I named an additional Venezuelan cardinal, he is Baltasar Porras, Archbishop of Mérida, who said the appointment “shows the affection the Pope has for us, and understanding that we are undergoing a difficult situation”. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/actualidad/noticias/baltazar-porras--anuncio-del-papa-expresa-su-amor-.aspx#ixzz4Mg8fl9uC)

 

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.