May 10, 2019

International Trade

Something is happening with Venezuela’s agriculture

Venezuela’s agricultural exports rose to US$ 322.3 million in 2017 from US$ 47. 4 million in 2013. They increased again in 2018 to US$ 337.1 million. In 2013 that modest level of agricultural exports accounted for 2.32% of exports different from oil and gold. In 2017 that percentage had increased to 12.34%. Over the past year – given the low export levels of commodities different from oil and gold, and an increase in agricultural exports – the latter accounted for 15.26% of total exports. The increase of agricultural exports has taken place despite a national productive collapse with many adverse conditions, the vast majority of which relate to the lack of favorable economic policies, such as a myriad of tighter controls and permits, the lack of inputs, lack of physical infrastructure and disrespect for the agrarian property. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2478291&CategoryId=10717)

 

Oil & Energy

PDVSA ad-hoc board to finance bond payment with uncollected oil revenue

Venezuelan state oil company PDVSA will use uncollected oil revenue to make a bond payment due this month, the board of directors named by interim president leader Juan Guaidó said on Thursday. The opposition-controlled National Assembly on Tuesday approved the US$ 71 million payment on PDVSA’s 2020 bond, as it seeks to avoid losing control of PDVSA’s U.S. refining subsidiary CITGO. The Maduro regime had remained current on that bond even as it defaulted on billions of dollars in other bonds, because the PDVSA 2020 is backed by shares in Citgo, the country’s crown jewel overseas. In a statement, the board said the funds to pay the bond would come from “PDVSA’s overseas accounts receivable,” referring to invoices to customers that had not yet been paid. The board did not specify the value of PDVSA’s accounts receivable abroad but said it would make the payment within the 30-day grace period that began on April 27. If the payment is not made, bondholders could move to seize half the shares in Citgo, which PDVSA posted in collateral for the bond. Guaidó has sought to protect Venezuelan assets abroad from possible seizure by creditors since invoking the country’s constitution to assume an interim presidency in January. He has been recognized as the country’s rightful leader by dozens of countries, including the United States. Maduro retains control of PDVSA within Venezuela, as well as state functions. Any effort by a Maduro-linked entity to make the payment would have been complicated by sanctions the United States placed on PDVSA in January in a bid to squeeze Maduro’s government financially. (Reuters: https://www.reuters.com/article/us-venezuela-politics-bonds/venezuelas-pdvsa-ad-hoc-board-to-finance-bond-payment-with-uncollected-oil-revenue-idUSKCN1SF2KE: Bloomberg, https://www.bloomberg.com/news/articles/2019-05-08/venezuela-money-at-new-york-fed-may-be-key-to-pdvsa-bond-payment)

 

Firms flock to power auction for troubled Brazil state near Venezuela

Developers have presented more than 150 proposals for power plants ahead of an auction this month to supply electricity to the Brazilian state of Roraima, which has struggled with a rash of blackouts due to reliance on the shaky Venezuelan power grid. Roraima, which is not connected to Brazil’s national grid, has begun depending on expensive emergency fuel-burning plants in the absence of reliable power from its northern neighbor, which has sunk into a profound economic and political crisis. Brazil’s federal government set an auction for May 31 to close long-term contracts with new suppliers using any available source, from oil to wind or solar. Canadian Solar Inc and Brazilian companies Casados Ventos, Eneva SA and Equatorial Energia SA are among the potential bidders, according to industry sources.(Reuters, https://www.reuters.com/article/us-brazil-power-venezuela/firms-flock-to-power-auction-for-troubled-brazil-state-near-venezuela-idUSKCN1SF2MA)

 

Economy & Finance

Meet Venezuela's jilted creditors

Since December a handful of lawsuits have been brought against Venezuela and its state-owned oil company, PDVSA, over unpaid debts. One of the most recent comes from Siemens-owned DRESSER RAND. The oil-and-gas-equipment manufacturer is seeking US$ 132 million from PDVSA to cover missed interest payments and other fees. That suit followed another by Connecticut-based hedge fund CONTRARIAN Capital Management for US$ 182 million in unpaid promissory notes from PDVSA. Its subsidiary, Red Tree Investments, snapped the securities up from GE Capital at the start of the year. Given the ongoing power struggle at the highest echelons of the Venezuelan state, one firm has been told to wait for now, while the other is likely to face a similar fate. Earlier this week, US District Judge Alison Nathan granted the opposition government led by Juan Guaidó its request for a stay in the ongoing case with Red Tree. The stay is set to last 120 days, meaning no legal proceedings will take place during that time. Other firms have also filed lawsuits, including London-based hedge fund PHARO Management and another hedge fund registered in Panama City, BROKWEL Management. Given the opposition government's recent success in the courts, however, the more litigious of the creditors might want to rethink their strategy. (FT Alphaville: https://ftalphaville.ft.com/2019/05/10/1557486677000/Meet-Venezuela-s-jilted-creditors/)

 

Politics and International Affairs

Arrest of key legislator draws condemnation as Maduro tightens pressure on opposition

European and Latin American countries have condemned the arrest of a top lawmaker who backed calls for a military uprising against Nicolás Maduro. Edgar Zambrano, vice president of the opposition-controlled National Assembly in Venezuela, was leaving his Democratic Action party’s headquarters on Wednesday when he was detained by members of Maduro’s intelligence agency who surrounded his car. Zambrano was arrested by the regime's intelligence services on Wednesday. The SEBIN intelligence police towed Zambrano's car with the 64-year-old lawmaker inside it after he refused to step out outside the headquarters of his Democratic Action Party.  After a half-hour standoff, the SEBIN simply towed his car away while he remained in it. People who witnessed the incident shouted “assassins!” at the armed intelligence agents, who are loyal to the Maduro government. Zambrano tweeted, “Democrats will keep fighting!” as he was being whisked away to prison. The detention of Zambrano – who was among those who joined Guaidó’s fruitless attempt to spark a pre-dawn uprising against Maduro on 30 April – sparked a wave of domestic and international condemnation. “Maduro’s arrest of … Zambrano breaches parliamentary immunity and is a clear violation of the constitution,” tweeted the British foreign secretary, Jeremy Hunt. “Feels like the act of a desperate man on borrowed time.” The US state department slammed Zambrano’s “illegal and inexcusable” detention and warned: “If he is not released immediately, there will be consequences.” US President Donald Trump himself spoke out against the arrest on Twitter and signaled his support to Guaidó. He wrote: “I am returning to Washington, D.C. with Senator Rick Scott and Senator Marco Rubio, discussing the terrible abuses by Maduro. America stands with the GREAT PEOPLE of Venezuela for however long it takes!” The Lima Group, which includes a dozen Latin American countries and Canada, said his arrest was unconstitutional because his parliamentary immunity was illegally lifted. The European Union condemned the arrest of Zambrano, saying it formed part of Maduro's strategy to subjugate the opposition-held legislature. "Zambrano's arrest is a politically motivated action aimed at silencing the National Assembly," said an EU spokesperson. "The EU will continue to react, through its different policy instruments, to further erosion of democratic institutions, the rule of law and human rights." Legislators Américo de Grazia and Mariela Magallanes are both in the Italian embassy, while their colleague Richard Blanco has gone to the Argentine embassy. They are among 10 lawmakers stripped of immunity after a pro-Maduro tribunal said they should be investigated for conspiracy, rebellion and treason. Seven other National Assembly lawmakers remain at risk of being arrested. Maduro has not tried to arrest National Assembly President Juan Guaidó, who invoked the constitution to assume the position of interim president, arguing that Maduro's re-election last year is considered illegitimate. The arrest of Zambrano appears to be part of a carefully calibrated crackdown on the opposition. Diosdado Cabello, a leading political ally of Maduro, suggested that the government is taking a methodical approach in its struggle with the opposition. “We're not in a rush,” Cabello said. On Thursday, General Miguel Rodríguez Torres, a former spy chief who became a government critic, was also transferred by military police to a maximum-security cell at a Caracas military base, his political movement said. Rodríguez Torres was arrested a year ago. In a televised address on Wednesday night, Maduro claimed “victory” over the 30 April plotters and promised to dedicate himself to rescuing Venezuela’s collapsed economy. But other top Chavistas are more cautious and warn there may be further attempts to topple their embattled leader in the days ahead – a view shared by many political observers in Caracas. “There could be a repeat – today, in two hours, in a week, in a fortnight,” Freddy Bernal, a senior Socialist party figure, told state television on Tuesday. Maduro’s regime has so far avoided arresting Guaidó, which would likely provoke a stronger international backlash. But the recent measures suggest the ruling Socialist Party is seeking to isolate him by pursuing key political allies. (PBS: https://www.pbs.org/newshour/world/arrest-of-venezuelan-opposition-figure-draws-condemnation; BBC News: https://www.bbc.com/news/world-latin-america-48224790; VOA: https://www.voanews.com/a/venezuela-maduro-tightens-pressure-on-opposition/4910662.html; Reuters: https://www.reuters.com/article/us-venezuela-politics/venezuelan-lawmakers-seek-refuge-in-embassies-after-crackdown-on-Guaidó-allies-idUSKCN1SF1YK; Local 10: https://www.local10.com/news/venezuela/venezuela-s-maduro-defies-trump-s-warnings-on-Guaidó; VOX: https://www.vox.com/2019/5/9/18540091/venezuela-Guaidó-maduro-zambrano-arrest; Express: https://www.express.co.uk/news/world/1124978/venezuela-news-nicolas-maduro-juan-Guaidó-arrest-donald-trump)

 

Venezuela's opposition vow to defy Maduro after key figure detained

Opposition politicians battling to bring down Venezuela’s strongman leader, Nicolás Maduro, have vowed to continue their struggle after the detention of one of their movement’s key figures signaled the start of a major crackdown. Interim president Juan Guaidó on Thursday called for nationwide rallies to protest the arrest of Edgar Zambrano, an opposition figure and vice president of the democratically elected National Assembly. "This Saturday, we return to streets across the country to defend every Venezuelan represented in the National Assembly," Guaidó said, referring to the opposition-held legislature. "It is up to us to remain united and mobilized until we achieve freedom." “We take it as a given that the regime is going to keep escalating its repression,” Guaidó said at a news conference, referring to Zambrano’s arrest. Guaidó accused Maduro’s regime of “kidnapping” Zambrano, who was taken to El Helicoide, a notorious political prison in Venezuela’s capital, Caracas. He portrayed the arrest and targeting of members of the assembly as acts of desperation by a government whose leaders don’t know who to trust. He also called for Venezuelans to take to the streets on Saturday for fresh protests against Maduro on Saturday. “They won’t get us out of the streets,” said Guaidó, whose public appearance in Caracas reflected his belief that Maduro does not have the confidence to arrest him. Juan Andrés Mejía, one of the targeted deputies, told the Guardian the group would not be cowed by Maduro’s “absolutely illegal and unconstitutional” counterattack. “This is not going to work … You are not going to solve Venezuela’s problems by persecuting and imprisoning people. There are just too many of us who want change,” said Mejía, a close Guaidó ally and member of his party, Voluntad Popular (Popular Will).(DW: https://www.dw.com/en/venezuelas-juan-Guaidó-calls-for-return-to-streets/a-48681844; The Guardian: https://www.theguardian.com/world/2019/may/09/venezuela-maduro-Guaidó-crackdown-edgar-zambrano=

 

'We need to know why': Lawmakers wary as Trump aides weigh military options for Venezuela

Talk of possible U.S. military action in Venezuela is prompting bipartisan concern in Congress, where Democrats and Republicans alike cautioned against a rush toward intervention amid escalating rhetoric from Secretary of State Mike Pompeo and National Security Adviser John Bolton. U.S. intervention would be highly controversial and could spark a political backlash, in the United States and across the hemisphere. "What would our military’s mission be in Venezuela?” said Sen. Todd Young, an Indiana Republican, who sits on the Foreign Relations Committee. “Would the administration push for our military to conduct regime change?” The Marine Corps veteran has called for immediate congressional hearings on the issue and said he wants several “threshold questions” answered by President Donald Trump's top advisers. On Thursday, Trump denied a Washington Post report he is frustrated with Bolton's hardline position on Venezuela and that Bolton was pushing him into a war he didn't want. “John’s very good. He has strong views on things which is okay," Trump told reporters on Thursday. "I’m the one who tempers him ... I have John Bolton and I have people who are a little more dovish than him.” Any move by the Trump administration to send American forces to Venezuela would require congressional authorization, Young and other lawmakers said. That, in turn, would require Pompeo and others to make a compelling case to Congress and the American public that such a move is warranted. And there seems to be little political appetite among lawmakers for approval of such a move. Even some hawkish Republicans who have championed a U.S. military role in Venezuela seemed to shy away from a direct U.S. confrontation with Maduro’s military forces when pressed on the matter. “It’s too early,” Sen. Lindsey Graham, a South Carolina Republican, said Tuesday. Military options should be “on the table,” he said on Tuesday, but “we should really be putting a lot of pressure on Cuba right now.”  Other Republicans said U.S. military involvement in Venezuela, despite a strong desire to see Maduro step down, would only play into Maduro's hands.  “The first step…is calling on the administration to explain their thinking for threatening military action in the press,” said Young, who sits on the Senate Foreign Relations Committee. “If hostilities are imminent, then we need to know why.” Young said the committee's GOP chairman, Sen. James Risch of Idaho, shares his concerns and has promised to work on his request for hearings, although those might be closed-door sessions. (USA Today: https://www.usatoday.com/story/news/world/2019/05/09/lawmakers-not-comfortable-us-troops-venezuela-back-Guaidó-maduro/1137011001/)

 

Pence warns Venezuela’s Maduro harboring Iran-backed terrorists

 “The Iranian regime has been working with Venezuela’s corrupt dictatorship to establish a safe haven for its terrorist proxies,” U.S. Vice President Mike Pence said in a May 7 address to the Council of the Americas. “Hezbollah is working to extend its dangerous network throughout Venezuela, and from there, throughout our hemisphere,” Pence said.  “Venezuela is a failed state,” Pence said. “And as history teaches, failed states know no boundaries. Drug traffickers, criminal gangs, terrorist groups seeking to destabilize the region and profit from the misery of the Venezuelan people every day.” Pence pointed to an Iranian connection in Venezuela by citing last month’s “very public launch of direct air service between Caracas and Teheran by Mahan Air, a blacklisted airline controlled by Iran’s Revolutionary Guards Corps, which President Trump recently designated as a terrorist organization.” The vice president also denounced Maduro confidant and cabinet member Tareck El Aissami, who has been sanctioned by the United States as a drug kingpin and the European Union as a human rights violator. Pence described him as “a drug runner and a money launderer who partners with terrorist networks to bring Iran-backed terrorists into the country.”  “The struggle in Venezuela is the struggle between dictatorship and democracy,” Pence said Tuesday. “Nicolas Maduro is a dictator with no legitimate claim to power, and Nicolas Maduro must go.” (World Tribune: https://www.worldtribune.com/pence-warns-venezuelas-maduro-harboring-iran-backed-terrorists/)

 

Sen. Marco Rubio: China ‘controlling defense cyber operations’ in Venezuela

The Chinese government has actively helped Venezuelan dictator Nicolás Maduro control, censor, and shut down the Internet in his quest to keep the legitimate president of the country, Juan Guaidó, from governing, Sen. Marco Rubio (R-FL) told Breitbart News in an interview Monday. Rubio suggested that Beijing may be distancing itself from Maduro because the tide has shifted so definitively against him in Latin America that the rest of the region may sour on investments with China if it interferes to help him. That does not mean China is not helping Maduro, merely that it cannot afford the bad press, Rubio stated. “The Chinese are very involved. First, they are owed a bunch of money, so they want to get paid,” he explained. “Number two is they are single-handedly helping conduct the Internet control operation. They have basically taken a commercial version of their great Internet firewall and given it to Maduro, and it is a service they are providing him, so they are the ones that are shutting down the Internet and access to social media.” Maduro’s regime regularly cuts nationwide access to the Internet to prevent Guaidó and other opposition leaders from being able to communicate with the masses or organize rallies against him. Guaidó, according to Rubio, has “no access to the media. Any time he tries to speak or communicate on social media, they shut down the Internet. … Literally, every time he holds a rally, they shut down the Internet.” As the Chinese are “single-handedly controlling the defensive cyber operations shutting down the Internet,” they are responsible for silencing Guaidó. Yet being more open about their role could jeopardize investments in other parts of the continent. “The Chinese play a tricky game because on the one hand, they are trying to grow in influence and presence throughout Latin America, so they are seeing all of these countries supporting Guaidó, and they don’t want to … antagonize these countries by being cheerleaders for the Maduro regime,” Rubio noted. (Breitbart: https://www.breitbart.com/latin-america/2019/05/09/marco-rubio-china-controlling-defense-cyber-operations-venezuela/)

 

Is Trump failing in Venezuela?

We finally may have found a peak Donald Trump headline: “A frustrated Trump questions his administration’s Venezuela strategy.” The Washington Post story that goes with it is a classic. It seems that Trump hired John Bolton to be his national security adviser, cleared the path for him to be the main policy maker on foreign affairs, and … is now shocked that Bolton is something of a warmonger and that his schemes don’t produce perfect and painless results overnight. Trump and his aides also aren’t eager to disguise that the president is something of an outsider to his own administration’s policy-making process. Remember: It’s not uncommon for presidents to fight with executive-branch departments and agencies for control over policy. Those bodies have multiple masters. But splits between the president and his own staffers in the White House are far rarer, since such people work directly for, and answer only to, the president himself. Trump has said in recent days that Bolton wants to get him “into a war” — a comment he has made in jest in the past but that now belies his more serious concerns, one senior administration official said. Despite Trump’s grumbling that Bolton had gotten him out on a limb on Venezuela, Bolton’s job is safe, two senior administration officials said, and Trump has told his national security adviser to keep focusing on Venezuela. Trump also spoke approvingly of Russian actions in Venezuela following a lengthy phone call with Russian President Vladimir Putin on Friday, saying that Putin “is not looking at all to get involved in Venezuela other than he’d like to see something positive happen for Venezuela. And I feel the same way. We want to get some humanitarian aid.” U.S. officials think time is on their side and that Maduro will fall of his own weight. Sen. Marco Rubio (R-Fla.), who has been influential in shaping the administration’s Venezuela response, said Trump and Bolton are on the same page. Rubio, who said he spoke to Trump about Venezuela on Tuesday evening, backs the policy of waiting out Maduro. Rubio said some of the harshest U.S. sanctions are only now having full effect, including sowing dissension among Maduro aides. (Bloomberg, https://www.bloomberg.com/opinion/articles/2019-05-09/why-donald-trump-is-failing-in-venezuela; The Washington Post: https://www.washingtonpost.com/politics/a-frustrated-trump-questions-his-administrations-venezuela-strategy/2019/05/08/ad51561a-71a7-11e9-9f06-5fc2ee80027a_story.html)

 

US Secretary of State Pompeo to meet Russian President Putin, FM Lavrov on May 14

Mike Pompeo is to meet Russian President Vladimir Putin and Foreign Minister Sergey Lavrov when he travels to Russia next week, the US State Department said in a statement. The visit comes as the relations between Moscow and Washington are at a new low over accusations of Russian meddling and disagreements over approaches to Venezuela and Iran’s nuclear program. The State Department says they will discuss “the full range of bilateral and multilateral challenges” during a meeting in the southern city of Sochi on May 14. (RT: https://www.rt.com/news/458985-pompeo-travel-russia-date/)

 

Russian FM Lavrov speaks on prospects for US-Russia deal on Venezuela

Russian Foreign Minister Sergei Lavrov has announced that there won’t be any “deals” on Venezuela between Moscow and Washington. "Trump is the one who usually prepares deals", Lavrov remarked. The foreign minister delivered this statement ahead of the upcoming meeting between him and US Secretary of State Mike Pompeo, which is scheduled to take place on 14 May in Sochi. Earlier this week, Lavrov also dismissed speculations about the possibility of a military intervention in Venezuela, stating that Russia opposes “hostilities anywhere in violation of international law”, and that “the use of force may only be authorized by the UN Security Council, or force may be used in response to aggression against a sovereign state”. (Sputnik News: https://sputniknews.com/world/201905091074854135-russia-us-venezuela-deal/)

 

Russia not planning to send more military specialists to Venezuela

Moscow does not plan to send more Russian military specialists to Venezuela, RIA news agency quoted Russian Deputy Prime Minister Yuri Borisov as saying on Thursday. The Kremlin said in March that Russian military specialists are in Venezuela to service pre-existing contracts for the supply of Russian arms. (Journal Pioneer: https://www.journalpioneer.com/news/world/russia-not-planning-to-send-more-military-specialists-to-venezuela-ria-309646/)

 

Ex-Venezuelan spy chief says Venezuelans should 'build a new state'

The ex-head of Venezuela’s SEBIN intelligence service, who was replaced last week after an attempted military uprising against Nicolas Maduro, urged Venezuelans on Thursday to build a new state and combat corruption.

In his first public appearance since Maduro replaced him on April 30, Manuel Christopher said Venezuelans “deserve a better country,” according to a video of Christopher posted on Twitter by Venezuelan TV outlet NTN24. (Reuters, https://www.reuters.com/article/us-venezuela-politics-intelligence/ex-venezuelan-spy-chief-says-venezuelans-should-build-a-new-state-idUSKCN1SF2PO)

 

Venezuelan Embassy’s power cut off in tense Washington standoff

A chaotic political standoff with international diplomatic implications began unfolding quietly weeks ago on a leafy side street in the upscale Georgetown neighborhood of Washington, as a group of American activists moved into the five-story Venezuelan Embassy and made themselves at home. With some 100 Venezuelan diplomats still working inside during the day, the activists from Code Pink and other antiwar groups brought their things to spend the night, sleeping on couches to keep the building occupied around the clock. They said they were guests, invited by the regime of Nicolás Maduro, and their mission was to oppose any American military intervention in the troubled nation. The antiwar activists have been alone in the embassy building since late April, when the American visas for the shoestring embassy staff expired, forcing the diplomats to go home. Appointees of Juan Guaidó, the opposition leader recognized by the United States and some 50 other countries as Venezuela’s interim president, had pledged to take over the embassy, a move those now occupying the facility fear could lead to a reciprocal siege of the American Embassy in Venezuela, and an armed conflict. Late last month, local Venezuelans who support Mr. Guaidó learned of the occupation and descended on the building, demanding that the activists, whom they view as unlawful trespassers, get out. In the ensuing days, tense clashes between the occupiers and the Venezuelans, who are camped in tents surrounding the building, have escalated, prompting nine arrests by the Secret Service. Late on Wednesday, the power company shut off electricity to the embassy, thrusting its occupants into darkness. The protesters outside cheered. The extraordinary stalemate has challenged local authorities and the Trump administration, turning the inoperative embassy into a stand-in for the much larger crisis vexing Venezuela, as Mr. Maduro’s supporters maintain control despite of efforts by the opposition and the United States. The State Department has said it considers their presence to be “unauthorized.” Washington police and the Secret Service have set up a barrier separating the pro-Guaidó camp from Maduro sympathizers and other activists across the street. Late on Wednesday, the power company shut off electricity to the embassy, leaving the activists inside in darkness. Only about 15 people remain in the building,  (The New York Times: https://www.nytimes.com/2019/05/09/us/venezuela-embassy-protests.html)

 

OP-ED: Can the U.S. help Venezuela militarily without use of force? by Sarah Lee

Lawmakers are debating whether the U.S. should proceed with military action in Venezuela to help end the socialist Maduro regime even as debate about whether the U.S. has a responsibility to protect Venezuela — and if there are ways the military can be utilized without use of force. Luis Almagro, Secretary General of the OAS, detailed the reasons he believes the U.S. and other nations would be justified in entering Venezuela and using force if necessary, under UN guidelines covering the “responsibility to protect” policy, or R2P.  While the Trump administration continues conversations with nations such as Russia and Iran, as Secretary of State Mike Pompeo did this week, some are noting that military intervention doesn’t necessarily have to mean use of force. How would it work? U.S. special forces, next door in Colombia to assist that country’s armed forces, would train the Venezuelan opposition in best practices of nonviolent resistance. This includes teaching tactics of dispersal, evading tear gas, erecting barricades, and maintaining command and control in the face of government repression. But can nonviolent resistance work? A new report by the Joint Special Operations University on Support to Resistance (STR) operations suggests it can. With the Maduro regime arresting interim president Juan Guaidó’s ally, National Assembly Vice President Edgar Zambrano, Wednesday, the U.S. may need to decide quickly on just how to help its neighbor to the south. (Town Hall: https://townhall.com/tipsheet/sarahlee/2019/05/09/can-the-us-help-venezuela-militarily-without-use-of-force-n2546111)

 

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.

 

January 15, 2019

International Trade

Venezuela goes to WTO to contest Colombia fuel import rules

Venezuela has launched a complaint at the World Trade Organization to challenge Colombia’s restrictions on the distribution of liquid fuels imported from Venezuela, a filing published by the WTO showed on Monday. Venezuela said Colombia was illegally discriminating against its fuel exports by imposing “a series of distribution and licensing measures, and product surcharges, market access measures and pricing policies” on Venezuelan fuel. Colombia has 60 days to settle the dispute or Venezuela could ask the WTO to adjudicate, although the ability of the Geneva-based body to keep refereeing such disputes is in doubt due to a U.S. block on judicial appointments. (Reuters, https://www.reuters.com/article/us-venezuela-colombia-wto/venezuela-goes-to-wto-to-contest-colombia-fuel-import-rules-idUSKCN1P8256)

 

Oil & Energy

U.S. considers harshest Venezuela sanctions yet, on oil

The U.S. is evaluating whether to impose tougher sanctions against Venezuela’s military and vital oil industry, a senior Trump administration official said Monday, as it seeks to ratchet up pressure on authoritarian leader Nicolás Maduro to hold free and fair elections. The Trump administration is considering a range of measures including curtailing the flow of Venezuelan oil to the U.S., the official said, in what could be the harshest blow to the country's money supply. No final decision has been made. (The Wall Street Journal: https://www.wsj.com/articles/u-s-considers-harshest-venezuela-sanctions-yet-on-oil-11547510165)

 

Dominican Republic moving to take back Venezuela shares in refinery

The Dominican Today news site reported that the Dominican government has initiated negotiations to buy the 49% stake held by PDV Caribe, a subsidiary of Venezuela’s State-owned PDVSA, in the Dominican Petroleum Refinery (REFIDOMSA PDV). PDV Caribe has reportedly yet to agree to sell its stake and, "if the Venezuelan company doesn’t agree to the sale, the Dominican State would be forced into litigation declaring the country’s only refinery eminent domain and a matter of national security", REFIDOMSA PDV CEO Felix Jimenez is reported to have said. Jimenez reportedly does not expect the process - initiated last December - to be affected by Santo Domingo’s decision not to recognize the legitimacy of Venezuela president Nicolas Maduro. (Loop Jamaica: http://www.loopjamaica.com/content/dom-rep-also-moving-take-back-venezuela-shares-refinery)

 

Venezuela’s crisis threatens U.S. control over oil prices

The Russian bear is on the prowl once again as President Putin seeks to expand Moscow’s influence and bolster the one-time superpower’s global influence while proving to constituents he can restore Russia’s superpower mantle. As demonstrated by his policy in Ukraine in 2014, Moscow seeks to take advantage of regional conflicts to extend its authority and geopolitical power base while bolstering its economy. One country benefitting from Putin’s largesse is crisis-ridden and cash strapped Venezuela which has the world’s largest crude oil reserves. Moscow has been using Venezuela’s deepening economic and political crisis to strengthen its relationship with the highly unpopular socialist regime of President Maduro. That has included providing a financial lifeline to cash strapped Caracas and especially state-controlled energy company Petróleos de Venezuela, S.A. known by its initials as PDVSA. With few friends elsewhere, Russia has become a key ally for the strife-torn nation causing Maduro to leap at the opportunity provided by Moscow. Russia has shown itself willing to be a creditor of last resort for Maduro. In exchange for moderate loans, cash advances, bail outs and arms over the last five years since Maduro came to power, Moscow has secured significant interests in five of Venezuela’s largest oil fields. The Maduro regime has also signed over almost half of its downstream, refinery and infrastructure business CITGO to Russian state-controlled oil giant Rosneft for US$ 1.5 billion in urgently needed funds. That includes giving Moscow indirect interests in CITGO’s U.S. refining assets. This is quite a prize for Moscow. It not only bolsters its oil reserves, infrastructure and assets in a country which hold the world’s largest oil reserves, but it gives Russia a strategic presence in a region long considered to be exclusively under U.S. hegemony. It appears that Russia is not interested in the survival of the Maduro regime but rather to evade existing sanctions, apply political pressure to the U.S. and boost its oil reserves, refining capacity and production. (Oil Price: https://finance.yahoo.com/news/venezuela-crisis-threatens-u-control-200000843.html)

 

Commodities

Venezuela to refine tons of gold in Turkey amid US sanctions

Venezuela and Turkey are working on a deal to ship tons of gold to refine and certify in the Turkish city of Corum this year. Facing sanctions and international pressure, Venezuela is increasingly turning to Turkey as a partner in the Middle East. Ankara will provide a host of services to Caracas, including building hospital and schools and providing humanitarian aid as a part of the gold refining deal. Venezuelan Minister of Industries and National Production Tareck El Aissami will finalize a deal on the gold trade during a visit to Turkey on Wednesday. He will also tour an industrial complex in Corum, where Ahlatci Metal company has a refinery with an annual capacity of 365 tons, according to a spokesperson from the Turkish precious metals company. Aissami is visiting Turkey amid US sanctions against Venezuelan gold imports, which are further debilitating the country's failing economy that is in need of fresh capital. Aissami himself is targeted by a set of sanctions by the European Union and the US due to allegations of corruption and drug trafficking. The new deal has been in the making since Turkish President Recep Tayyip Erdogan’s visit to Venezuela in December. Erdogan had personally introduced businessman Ahmet Ahlatci to president Nicolas Maduro as a likely candidate to refine the gold. Mehmet Ozkan, a former Turkish official who worked on bilateral relations with Venezuela until last year, said that the main objective was to refine the raw metal and create a capital inflow to Venezuela, likely in the form of services because of US sanctions that prohibit financial institutions from dealing with Venezuela in dollars. (Middle East Eye: https://www.middleeasteye.net/news/venezuela-intends-refine-tons-gold-turkey-amid-us-sanctions-378492428)

 

Maduro opponent says Hezbollah is exploiting Venezuela gold mines

An MP opposed to President Nicolas Maduro revealed that the Lebanese Hezbollah group was exploiting gold mines in his country in order to finance its “destabilizing terrorist activity in the Middle East.” MP Americo De Grazia said that the armed group owns two mines in the Orinoco Mining Arc project that is supported by Maduro. He said that cooperation between the Venezuelan government and Hezbollah is mutually beneficial for both parties. The government, he explained, was generating a lot of revenues from the partnership, while the group was making economic profits and avoiding international sanctions. (Asharq-Al-Awsat: https://aawsat.com/english)

 

Economy & Finance

Venezuela congress seeks freeze on Maduro government foreign accounts

Venezuela’s opposition-run congress is considering a measure that would ask dozens of foreign governments to seek a freeze on bank accounts controlled by the government of President Nicolas Maduro. Congress will formally request that governments instruct regulatory agencies to “prohibit any movement of liquid assets by the Venezuelan state in local bank accounts” due to the Maduro government’s lack of legitimacy, according to one of the documents. The governments include those in the United States, European Union, and Latin American neighbors such as Chile and Brazil. (Reuters: https://www.reuters.com/article/us-venezuela-politics/venezuela-congress-seeks-freeze-on-maduro-government-foreign-accounts-document-idUSKCN1P920G)

 

Maduro increases minimum wage by 300% as inflation approaches 2 million per cent

Nicolás Maduro has raised the country’s minimum wage by 300% as part of routine wage increases as his government battles hyperinflation. Maduro increased the minimum wage to 18,000 bolivars, around £5.20, per month amid an economy suffering from annual inflation nearing two million per cent. He announced his economic plans at the start of his second, disputed, term on Monday, as calls increased for him to surrender power. (The Independent: https://www.independent.co.uk/news/world/americas/venezuela-minimum-wage-nicolas-maduro-bolivars-inflation-a8728716.html; Reuters, https://www.reuters.com/article/us-venezuela-politics/venezuelas-maduro-hikes-minimum-wage-as-economy-struggles-idUSKCN1P81RN; https://www.reuters.com/article/us-venezuela-politics-wage/venezuelas-maduro-hikes-minimum-wage-300-percent-idUSKCN1P82E2)

 

Russia offers Venezuela plan on revitalizing economy

Russia has proposed Venezuela an informal plan to revive the country's economy and is waiting for a response from Caracas, Russian Deputy Finance Minister Sergey Storchak told Sputnik on Tuesday. "We have made a proposal [to Venezuela]. An informal one. Traditionally, a project is devised after consultations and partners provide a response to this project", the official said on the sidelines of the Gaidar Forum. He also addressed the deal on restructuring Venezuela's debt to Russia. "Agreements have already been reached. They are making payments in line with a new schedule", Storchak added. (Sputnik News: https://sputniknews.com/latam/201901151071490301-russia-venezuela-economy/)

 

Politics and International Affairs

Venezuelan parliament declares Maduro illegitimate, and urges defections

Leaders of Venezuela’s opposition on Tuesday set in motion a plan to try to oust President Nicolas Maduro and create a caretaker government until new elections can be held. The National Assembly, the opposition-controlled legislative body, declared Maduro illegitimate, hoping to trigger a Constitutional mechanism that would allow the head of the National Assembly to take over the leadership. It was not immediately clear what effect the move would have or how Maduro’s government would react. The National Assembly has been largely powerless since Venezuela’s Supreme Court, which is packed by Maduro loyalists, attempted to dissolve it in March 2017. But pressure has been growing on Maduro both domestically and abroad since the president was sworn in for his second term last week. Not long after the ceremony, an opposition leader who is head of the National Assembly, Juan Guaidó, said he would be ready to take over as president and call fair elections if Venezuelans and the armed forces backed him. He quickly received support from Luis Almagro, the secretary general of the Organization of American States, who began calling Mr. Guaidó the country’s “interim president,” and from Vice President Mike Pence. Mr. Pence said in a message posted on Twitter Sunday that the United States “strongly supports the courageous decision by Juan Guaidó” to “declare the country’s presidency vacant.” Mr. Guaidó was briefly taken into custody by members of Venezuelan intelligence service on Sunday, then released. In an interview, he said he had been able to convince the officers that the opposition’s plan to remove Mr. Maduro was constitutional and would help the country.  The fact that Mr. Guaidó was released may indicate cracks in the security apparatus that has kept Mr. Maduro in power until now. Mr. Guaidó said on Monday that opposition leaders believed they stood a good chance of seizing power from Mr. Maduro and convening a new election. The key would be to persuade those who remain loyal to the government that they can switch allegiances and help rebuild a country devastated by an economic meltdown, acute food and medicine shortages and rampant violence. (The New York Times: https://www.nytimes.com/2019/01/15/world/americas/juan-guaido-nicolas-maduro-venezuela.html)

 

Trump considering recognizing opposition leader as legitimate President of Venezuela

President Donald Trump is considering recognizing Venezuela's opposition leader as the legitimate president of the country, three sources familiar with the matter told CNN, a significant move that would increase pressure on President Nicolas Maduro. The Venezuelan opposition, the United States and dozens of other countries have decried Maduro's presidency illegitimate and the country's constitution says a presidential vacancy can be filled by the president of the National Assembly. National Security Council spokesman Garrett Marquis declined to confirm that Trump is weighing this step, but said the US has "expressed its support for Juan Guaido, who as President of the democratically-elected National Assembly has courageously declared his constitutional authority to invoke Article 233 and call for free and fair elections." Secretary of State Mike Pompeo calls Nicolas Maduro government in Venezuela 'illegitimate' The Trump administration is also considering leveling its harshest set of sanctions yet against Venezuela's oil industry, weighing actions as severe as a full-fledged embargo of Venezuelan oil, two sources briefed on the matter said. A full oil embargo would cause gas prices to rise by 15 cents a gallon for about six months, a former senior administration official said of the analysis. The Organization of American States said last week that its member nations voted 19-6, with eight abstentions, to not recognize the legitimacy of Maduro's government. One of those nations, Paraguay, announced Thursday it was breaking diplomatic relations with Venezuela and closing its embassy there. And Republican Sen. Marco Rubio on Tuesday said he asked Trump to recognize Guaido as "the legitimate transitional President of Venezuela if the National Assembly invokes Article 233 of the constitution." In a statement on Friday, National Security Adviser John Bolton expressed US support for "the courageous decision of the National Assembly President, Juan Guaido, to invoke protections under Venezuela's constitution and declare that Maduro does not legitimately hold the country's presidency." And after Guaido was briefly detained Sunday by Venezuelan government operatives, Pence lambasted Maduro as a "dictator with no legitimate claim to power" and reiterated Bolton's support for Guaido. As the US weighs recognizing Guaido, it must also contend with whether the Venezuelan opposition -- which has been divided on whether Guaido should be sworn in as president while Maduro remains in office -- is ready to take the step. (CNN: https://www.cnn.com/2019/01/15/politics/trump-juan-guaido-venezuela/index.html; McClatchy: https://www.mcclatchydc.com/news/nation-world/world/latin-america/article224566420.html)

 

Venezuela's opposition stirs with lawmaker's emergence

Rallying around a little-known lawmaker, Venezuela’s opposition is stirring for the first time since President Nicolas Maduro crushed mass protests more than a year ago. For months, citizens ravaged by hunger have ignored calls to protest what the U.S. and many other countries have called a rigged election. Now, a trickle of supporters comes to hear Juan Guaido, 35, the new head of the defanged National Assembly, explain how an abstract constitutional provision could make him acting president. But whether Guaido can threaten the two-decade socialist autocracy that has driven the nation to ruin is far from clear. To do that, Guaido faces a Herculean task. In his two-week tenure as head of the assembly, he’s become recognized at home and abroad as Maduro’s top rival. But the largely untested protege of political prisoner Leopoldo Lopez must channel international pressure, unite a fractious opposition and motivate a beaten-down populace. In a Monday speech, Maduro scoffed at the idea of handing Guaido the reins of power. “I’m going to give you the sash, big boy, to see what you do with the country,” Maduro said, referring to the president’s tricolor ceremonial garment. Guaido, a former student leader, entered the assembly just four years ago and became its chief after peers were arrested or forced into exile. How long his platform lasts remains to be seen. Last week, the Constituent Assembly passed a measure that could be the first step toward the legislature’s disappearance. It also threatened treason investigations against lawmakers who back demands by Venezuela’s neighbors that Maduro hand over power. In the meantime, Guaido is convening town-hall meetings to discuss a constitutional provision that, in the absence of a legitimate president, would give the assembly’s head presidential powers to call new elections. So far, he has stopped short of declaring himself acting president, telling Venezuelans he needs the backing of the military and international community. An industrial engineer by training, Guaido more than a decade ago began organizing demonstrations against Chavez after the late leader silenced critics by refusing to renew the broadcast license of Venezuela’s most popular television channel. He formed a close relationship with Lopez, then a Caracas mayor, and later helped him form the Popular Will party. Even with Lopez under house arrest, they talk several times a day. In his short career, Guaido has been applauded for building unity among fellow legislators. His present challenge is to channel the desperate desire for change within the limits of an authoritarian state. (Bloomberg: https://www.bloomberg.com/news/articles/2019-01-15/venezuela-s-moribund-opposition-stirs-with-lawmaker-s-emergence)

 

Venezuela opposition plans incentives for officers who disavow Maduro

Venezuela’s opposition-led congress is considering offering legal incentives to military officers who disavow President Nicolas Maduro and help lead a transition to a new government, according to four legislators and a draft document seen by Reuters. The proposal, which comes in part at the request of high-ranking officers on active duty, seeks to ensure that defectors from the armed forces would not be persecuted by a future government if they abandon Maduro, according to the legislators, who asked not to be identified. It would apply to officers who “do not obey the orders of the man who has usurped the Presidency of the Republic ... and collaborate with the tradition and re-establishment of constitutional order,” the draft says. (Reuters, https://www.reuters.com/article/us-venezuela-military/venezuela-opposition-plans-incentives-for-officers-who-disavow-maduro-idUSKCN1P52HH)

 

Opposition-controlled Venezuela legislature calls for protest to oust Maduro

Venezuela's opposition-controlled legislature is calling for a mass protest against President Nicolas Maduro in a bid to oust the socialist leader in favor of "a transitional government." The president of the National Assembly, Juan Guaido, said Friday that the constitution gives the legislature the right to assume transitional power after declaring Maduro a "usurper," but said it would need military backing and for people to take to the streets to demand change. "Is it enough to lean on the constitution in a dictatorship? No. It needs to be the people, the military and the international community that lead us to take over," said the 35-year-old Guaido. In response, prisons minister Iris Varela threatened Guaido on Twitter, saying she had a cell ready for him. "I hope you quickly name your cabinet to know who is going to accompany you," Varela said. Guaido called for a mass protest on January 23 -- the day in 1958 on which the military dictatorship of Marcos Perez Jimenez fell. Mass protests demanding Maduro's exit also erupted in 2014 and 2017, leaving around 200 dead and hundreds arrested. (France 24: https://www.france24.com/en/20190112-opposition-controlled-venezuela-legislature-calls-protest-oust-maduro)

 

Leader of Venezuela Congress says he is prepared to assume presidency

The leader of Venezuela’s opposition-led congress said on Friday he was prepared to assume the country’s presidency on an interim basis and call elections, just one day after leftist President Nicolas Maduro was sworn in for a disputed second term. Juan Guaido, said he would only take office with support of the armed forces. “It should be the people of Venezuela, the armed forces, and the international community that give us a clear mandate to assume” the presidency, Guaido said in a speech to supporters outside the United Nations (U.N.) program office in Caracas. (Reuters, https://www.reuters.com/article/us-venezuela-politics/leader-of-venezuela-congress-says-he-is-prepared-to-assume-presidency-idUSKCN1P51U6)

 

Opposition leader Guaido 'not afraid' after detention

Venezuelan opposition leader Juan Guaido on Sunday said that President Nicolas Maduro’s adversaries were “not afraid” even though he was briefly detained by intelligence agents, days after announcing he would be willing to replace the increasingly isolated president. Intelligence agents on Sunday pulled him from his car on the way from the capital, Caracas, to the coastal town of Caraballeda, his wife and opposition legislators said. He was released shortly thereafter, they said. “I want to send a message to Miraflores - the game has changed,” said Guaido, 35, the head of the opposition-run congress, referring to the presidential palace, from a stage surrounded by cheering opposition sympathizers. He said that his recent detention shows the “desperation” of the regime of Nicolas Maduro. “They are desperate at Miraflores (the presidential residence). They don’t know who is giving orders,” the Popular Will (VP) lawmaker told hundreds of people at a public assembly in his home state of Vargas, near Caracas. Guaido arrived at the event two hours behind schedule. Venezuelan Communications Minister Jorge Rodriguez said that the incident was an irregular and unilateral procedure, whereby the agents involved were fired and an investigation opened to determine responsibilities. Guaido told reporters that the official version of events shows that Maduro “no longer controls the armed forces,” which reveals – he said – the “serious problem” within the military. (Reuters, https://www.reuters.com/article/us-venezuela-politics/venezuela-opposition-leader-guaido-not-afraid-after-detention-idUSKCN1P70LZ; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2473136&CategoryId=10718; Bloomberg, https://www.bloomberg.com/news/articles/2019-01-13/venezuela-opposition-leader-arrested-by-intelligence-police)

 

Defense minister recognizes Nicolás Maduro as its commander in chief for the period 2019-2025

Venezuela’s Minister of Defense, General Vladimir Padrino López, says the Armed Forces recognize Nicolás Maduro, as their commander-in-chief, as established by the Constitution. He said: “the Bolivarian National Armed Forces reiterates its Bolivarian, anti-imperialist and anti-oligarchic character for the troops of the Armed Forces, the Army, the Aviation, the Guard and the Bolivarian National Militia (...) we recognize as our commander-in-chief - Nicolás Maduro ". Padrino stressed that in this new 2019-2025 presidential term, the FANB with absolute loyalty, will continue to fight for the ideals of independence and sovereignty. He swore, along with the military, “to honor and obey the mandate expressed on May 20th, by the people in free elections”. (Latin American Herald Tribune, http://www.avn.info.ve/contenido/fanb-recognizes-nicol%C3%A1s-maduro-its-commander-chief-period-2019-2025)

 

'Bolsonaro is Hitler!' Venezuela's Maduro exclaims amid Brazil spat

President Nicolas Maduro on Monday called Brazilian President Jair Bolsonaro a modern Adolf Hitler, days after Brazil on Saturday said it recognized Juan Guaido, head of Venezuela’s opposition-run Congress, as legitimate president. “Over there we’ve got Brazil in the hands of a fascist - Bolsonaro is a Hitler of the modern era!” Maduro said during a state of the nation speech. Brazil’s government on Saturday issued a statement saying it recognized Venezuela’s Congressional leader, who opposes President Nicolas Maduro, as the rightful president of Venezuela. (Reuters: https://www.reuters.com/article/us-venezuela-politics-brazil/bolsonaro-is-hitler-venezuelas-maduro-exclaims-amid-brazil-spat-idUSKCN1P82FJ; https://www.reuters.com/article/us-brazil-venezuela/brazil-says-it-recognizes-venezuelan-opposition-leader-as-president-idUSKCN1P60FJ)

 

South America creating regional bloc to counter Venezuela

South American countries are developing a new diplomatic group to replace the UNASUR regional bloc that is heavily influenced by increasingly isolated Venezuela, Colombian President Ivan Duque said on Monday. The new group, called PROSUR, would seek to counteract the influence of what countries in the region call a dictatorship in Venezuela. “We’ve been advancing toward the end of UNASUR and the creation of PROSUR ... a South American platform for the coordination of public policies, the defense of democracy, independent institutions, and market economies,” Duque said in a radio interview. “It is very important that (UNASUR), which has been a supporter of the dictatorship of Venezuela, be shut down,” Duque said. (Reuters: https://www.reuters.com/article/us-colombia-diplomacy/south-america-creating-regional-bloc-to-counter-venezuela-colombia-idUSKCN1P8287)

 

UN expresses concern over political situation in Venezuela

UN spokesperson Stéphane Dujarric says UN Secretary General António Guterres "is concerned with what he is seeing” in Venezuela, and “is following events closely”. He called on all sides to abstain from “any action or rhetoric” that increases tension. He described Sunday’s detention of the National Assembly president as proof of “polarization” here. More in Spanish: (El Universal, http://www.eluniversal.com/politica/30540/la-onu-expresa-su-preocupacion-por-situacion-politica-en-venezuela)

 

Pompeo says Venezuela's Maduro government is 'illegitimate'

U.S. Secretary of State Mike Pompeo described Venezuela’s government under President Nicolas Maduro as illegitimate on Saturday and said the United States would work with like-minded countries in Latin America to restore democracy there. “The Maduro regime is illegitimate, and the United States will work diligently to restore a real democracy to that country,” Pompeo told reporters in Abu Dhabi, where he is on a tour of Middle East countries. “We are very hopeful we can be a force for good to allow the region to come together to deliver that.” (Reuters, https://www.reuters.com/article/us-venezuela-politics-pompeo/pompeo-says-venezuelas-maduro-government-is-illegitimate-idUSKCN1P60FL)

 

Venezuela claims win in Latin American diplomatic dispute, ignores criticism of Maduro

Venezuela’s government claimed victory on Saturday in a diplomatic quarrel with Latin American countries over a border dispute with Guyana, while ignoring an avalanche of criticism over President Nicolas Maduro’s second term in office. Maduro had warned members of the so-called Lima Group of “diplomatic measures” after they said on Jan. 4 that they would not recognize his second term because Venezuela’s 2018 election was not free or fair. The statement, signed by nations including Brazil, Argentina and Colombia, also expressed concern that Venezuela had violated Guyana’s sovereignty by stopping a ship doing offshore oil exploration on behalf of Exxon Mobil Corp. Foreign Minister Jorge Arreaza said at a news conference on Saturday that 10 of the 12 governments that signed the statement had since clarified their position on the Guyana dispute. (Reuters, https://www.reuters.com/article/us-venezuela-politics/venezuela-claims-win-in-latam-diplomatic-dispute-ignores-criticism-of-maduro-idUSKCN1P60NJ)

 

Venezuela proposes summit for reconciliation with countries of the region

Venezuelan Foreign Minister Jorge Arreaza proposed on Saturday a summit of Latin American countries for a session of reconciliation that would do away with political intolerance which, he said, is being applied in the region against the Nicolas Maduro government, whose legitimacy is not accepted by many in the international community.
“We insist on President Nicolas Maduro’s proposal to hold a summit of presidents... and also of a group of countries in the region, which will help achieve an end to this ideological intolerance that has grown in recent years,” the official told reporters this Saturday.Arreaza said the meeting could take place during a summit of the Community of Latin American and Caribbean States (CELAC), whose presidency is currently held by the Salvadoran president and Maduro ally, Salvador Sanchez Ceren. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2473108&CategoryId=10717)

 

Venezuela’s maritime claims also include territory of some CARICOM states

Venezuela is seeking to expand its maritime space not only in Guyana’s territory but also in the Exclusive Economic Zones (EEZs) of Caribbean Community (CARICOM) and other states, including Colombia, Barbados and Suriname, which must all be vigilant as a result. This warning was issued last Thursday by Guyanese Minister of Foreign Affairs Carl Greenidge and former Minister of Foreign Affairs Rashleigh Jackson, who both pointed out that regular aggression against Guyana by Caracas including the recent interception of an ExxonMobil-contracted vessel in Guyana’s maritime space, has implications not only for Guyana but for the rest of the Caribbean as well. Greenidge and Jackson cautioned against Venezuela’s expansionist approach to increasing its maritime space and enforcing its actions through domestic laws which are not recognized internationally. (Stabroek News: https://www.stabroeknews.com/2019/news/guyana/01/13/venezuelas-maritime-claims-also-include-territory-of-some-caricom-states/)

 

Vatican, Venezuela bishops play ‘good cop/bad cop’ with Maduro

A day after the bishops of Venezuela declared the new presidency of Nicolas Maduro “illegitimate,” Pope Francis sent a Vatican representative to his inauguration. Maduro thanked Monsignor George Koovakod for his “bravery” for coming. Many observers say the apparent contrast isn’t a matter of the Vatican and the bishops being at odds, but rather a classic “good cop, bad cop” diplomatic maneuver. Concerns over legitimacy have led the United States, along with most nations of Latin America and the European Union, to break diplomatic relations with Venezuela. Visible among the few representatives from other countries was Koovakod, a Polish monsignor who was appointed as Chargé d’affaires at the Vatican’s Secretary of State last year.

The Venezuelan crisis is not one the Holy See’s diplomatic team looks at from afar: the substitute, often referred to as the second most important person in the secretariat, comes from this Latin American country, Archbishop Edgar Peña Parra. The secretary of state, Italian Cardinal Pietro Parolin, was handpicked by Francis for the job while he was serving as papal representative in Venezuela. When the Venezuelan bishops were in Rome last September for their ad-limina visit, the matter of the Holy See acknowledging Maduro as the rightful, democratically elected president was brought up by many in the Vatican, including Francis. The situation is complex, and no clear decision was reached during the week-long visit. According to Elisabetta Pique, a long-time Vatican watcher who writes for one of Argentina’s major newspapers, La Nación, the Venezuelan bishops had the green light from the Holy See to declare Maduro’s regime to be illegitimate and the local episcopacy had been consulted about the pros and cons of sending a representative to Maduro’s swearing in. This information suggests that despite Maduro’s attempts to put the bishops and Francis on opposite sides, at the end of the day, it’s no more than another case of the Vatican’s realpolitik at play, confirming the Holy See’s intentions never to break diplomatic relations with a country. The Church’s long-standing tradition of leaving the doors of dialogue and diplomacy open whenever it’s possible does not mean actual support of the local ruling class. In 2016 Francis tried, unsuccessfully, to mediate dialogue efforts between Maduro and the opposition. Despite this, the Vatican’s attention to the Venezuelan situation has remained steady, as seen during the pope’s Christmas speech and his address to the diplomatic corps accredited to the Holy See. On both occasions he referred to the situation of Venezuela, and also that of Nicaragua, facing a similar situation and one that could devolve even more rapidly, as the Central American nation is not sitting on top of one of the world’s largest oil reserves. Expressing “hope for beloved Venezuela,” Francis told the diplomats that “peaceful institutional means can be found to provide solutions to the ongoing political, social and economic crisis; means that can make it possible to help all those suffering from the tensions of recent years, and to offer all the Venezuelan people a horizon of hope and peace.” In that speech he said that “the Holy See has no intention of interfering in the life of states; it seeks instead to be an attentive listener, sensitive to issues involving humanity, out of a sincere and humble desire to be at the service of every man and woman.” Many observers saw this as a response from the pope to a letter signed by 20 Latin American former presidents criticizing the pope’s remarks on Christmas Day, when he said he wished this time of “blessing,” referring to the holiday season, would bring “concord” to Venezuela. (The Crux: https://cruxnow.com/church-in-the-americas/2019/01/13/vatican-venezuela-bishops-play-good-cop-bad-cop-with-maduro/)

 

Venezuela blocks Wikipedia after Maduro ‘ousted’ from article, internet watchdog says

Venezuela has blocked access to Wikipedia, the free online encyclopedia, becoming only the second country after Turkey to do so, an internet watchdog claimed Sunday. According to NetBlocks, a digital rights group that tracks restrictions to the internet, as of 12 January, Venezuela largest telecommunications provider CANTV has prevented access to Wikipedia in all languages. The internet observatory told Haaretz the ban was discovered by attempting "to access Wikipedia and other services 60,000 times from 150 different points in the country using multiple providers." Wikipedia receives on average 60 million views from the country every month.  According to NetBlocks, the ban was likely imposed after a Wikipedia article listed newly-appointed National Assembly president Juan Guaidó as “president number 51 of the Bolivarian Republic of Venezuela,” ousting Maduro from his presidential status on Wikipedia.  Alp Toker, the head of NetBlocks, explained that the block followed a string of controversial edits on the Spanish-language article for Guaido as well as other related articles.  (Haaretz: https://www.haaretz.com/world-news/internet-watchdog-venezuela-blocks-wikipedia-after-maduro-ousted-from-article-1.6831777)

 

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.