Tag Archives: Oil issues in Venezuela

Aug
30
2013
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In Case You Missed It…Articles Roundup Week of 8/30/13

130830 maduro 4a.photoblog600 e1377895796289 In Case You Missed It…Articles Roundup Week of 8/30/13

Courtesy of: Associated Press

This week: Nicolás Maduro airs his own hypocrisy by seeking enhanced powers to “tackle corruption;” leading Venezuelan TV news channel Globovisión receives a volley of resignations amid government censorship; the Venezuelan daily newspaper Versión Final is sold to a government supporter,  likely leading to staff dismissals; and ex-managers for Venezuelan oil-giant Pdvsa are charged with corruption. Maduro claims that two Colombian men planned to kill him at the same time as the attack in Syria; despite a lack of evidence, Maduro demands an explanation, arguing President Barack Obama knew of the plot to assassinate him; Henrique Capriles, on the other hand, dismisses the government’s claims of an assassination plot; and Maduro misquotes a Biblical passage, saying “Christ multiplied the penises.” With the bolivar collapsing and prices spiraling higher, the government turns to political witch hunts to distract people from reality; Venezuela is again on the verge of another currency devaluation, likely after December’s municipal elections; Venezuelan authorities insist the country will become an exporting giant, yet non-oil exports are down 20.6% from last year; according to Central Bank statistics, the GDP of Venezuela’s public sector doubles that of the private sector;  and the public debt in Venezuela has drastically increased over the past two years, rising 53% since 2011.

In Venezuela, Absolute Power Corrupts Absolutely, Bloomberg

Venezuelan President Nicolas Maduro has lately been accused of hypocrisy for seeking enhanced powers to rule by decree so that he can tackle the corruption that rots Venezuela’s political institutions. The accusation is fitting. Maduro is finally admitting that the Venezuela he inherited from the late Hugo Chavez is wracked by corruption, just five months after he famously claimed, “There is no corruption, for the first time in the history of Venezuela, in 180 years.”

Venezuelan news TV channel Globovisión receives a volley of resignations, El Universal

“I am only left with job uncertainty, but have the peace of mind that comes with knowing that I always did the right thing,” journalist Román Lozinski read out on his radio show from a personal statement he wrote following his resignation from Globovisión. Resignations have been piling up at the television news network after the retirement of call-in show host Leopoldo Castillo on August 16.

Pressure over sale of Venezuelan daily newspaper Versión Final, El Universal

Workers from Versión Final are likely to be dismissed upon the sale of the daily newspaper to an alleged relative of Francisco Arias Cárdenas, ruling party governor of the state of Zulia, northwest Venezuela. There are reports that the company underwent a lot of pressure prior to the negotiation: it first experienced restrictions related to newsprint, then economic pressure that finally ended in the sale of the company to Carlos Alaimo, the father-in-law of Cárdenas’ son.

Pdvsa’s ex managers in Monagas charged with corruption, El Universal

The Public Prosecutor Ministry charged two former managers of Petróleos de Venezuela (Pdvsa) for the collection of VEB 600,000 (US$ 95.279,40) from a contractor. Defendants are Jannimett de Los Ángeles Flores Quijada (37), former legal counsel of Pdvsa in Punta de Mata, and Jorge Natera Barrios(35), former super intendant of litigation at same division.

Maduro: “The plan was to kill me in parallel with the Syria attack”, El Universal

Venezuelan President Nicolás Maduro reported on Wednesday that two Colombian individuals “hired by drug traffickers to kill the Head of State” were arrested. In that sense, Maduro rejected the remarks made by opposition deputy Julio Borges about the assassination claims aired on Monday. “Borges made an irresponsible and anxious statement, saying that (the hit men) that were arrested did not even have firearms to accomplish their task.

Venezuela demands US explanation over alleged assassination plot, The Telegraph

Nicolas Maduro called on the American president to explain what he knew of the alleged assassination plan. President Maduro said that besides Colombia, it was hatched by far-right Venezuelan opposition figures in Miami. The Venezuelan president is a frequent and fiery critic of Washington, as was his predecessor, the late Hugo Chavez.

Capriles: “The people laugh about assassination plots”, El Universal

On Monday, on a meeting with “Miranda’s entrepreneurs,” in Caucagua, Miranda state, Henrique Capriles, Governor of Miranda state and opposition leader, referred to the announcement of the arrest of a gang who allegedly wanted to assassinate President Nicolás Maduro and Deputy Diosdado Cabello.  “Nobody believes that tall story.

Nicolas Maduro Says ‘Christ Multiplied The Penises’ In Major Screw Up (VIDEO), Huffington Post

Christ did WHAT?!? The man who once gave us “Chavez came to me as a little bird” has uttered another phrase that is getting a lot of chatter online. Venezuelan president, Nicolas Maduro, seriously screwed up an iconic biblical anecdote while speaking at the Miranda Stadium when he said: “Multiply ourselves, like Christ multiplied the penises.”

Chavez’s Inflation Bites His Successor, Wall Street Journal

Hyperinflation and political witch hunts seem to go together. Just ask the Venezuelan opposition. With the bolivar collapsing and prices spiraling higher, the government alleged this month that its No. 1 adversary, former presidential candidate Henrique Capriles, is linked to a prostitution ring that was using minors in the state of Miranda, where he is governor.

Venezuela is on the verge of another devaluation, El Universal

Imbalances ailing Nicolás Maduro’s government are so pronounced that most financial entities agree that the country, after undergoing stringent adjustments last February 8 through which the official exchange rate jumped from VEB 4.30 to VEB 6.30, is heading towards another devaluation likely to take place after December’s elections for mayors.

Venezuelan non oil exports down 20.6%, El Universal

Venezuelan authorities insist on saying: Venezuela will become an exporting giant. However, official records say the opposite. According to the figures from the Central Bank of Venezuela, non oil exports accounted for just USD 810 million in the second quarter, 20.6% down with respect to a year earlier.

GDP of the public sector doubles that of the private sector, El Universal

The statistics of the Central Bank of Venezuela (BCV) suggest that the loss of dynamism of the Venezuelan economy has exerted a heavier impact on the private sector rather than the public sector with growth reported at 1.1% and 2.6%, respectively. Such great disparity between the sectors is attributed to the existing imbalance in the sale of US dollars aimed at importing raw materials, machinery, and finished products to supply the domestic market.

Debt of the Venezuelan gov’t soars 53% in two years, El Universal

Since 2011, the Venezuelan oil basket price has been above the USD 100 ceiling. In this context of high oil revenues, the Government has spurred indebtedness. Based on the figures of the Ministry of Finance, the public debt grows rapidly with liabilities jumping 53% from the first half of 2011 through 2013. Such increase is mainly attributed to heavy expenditure exceeding regular income, a situation that has made authorities seek other founding sources.

Venezuelan unemployment hits 7.6% in July, El Universal

Venezuelan unemployment rate stood at 7.6% in July, according to a monthly report on the workforce issued by the National Statistics Institute (INE). The information was released by Professor Elías Eljuri, president of the institute, who also said the unemployment rate reported in July was actually lower than that of 2012 (7.9) and 2011 (8.0%).

 
Jul
12
2013
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In Case You Missed It… Articles Roundup Week of 7/12/13

1 photo e1373659882830 In Case You Missed It… Articles Roundup Week of 7/12/13

Courtesy of: Policy Mic

This week: In defiance of Washington, Venezuela offers asylum to NSA leaker Edward Snowden; 44 percent of Venezuelans seek better relations with the United States; if asylum is granted, Venezuela may face economic and diplomatic sanctions by the United States; Maduro faces a potential revolt from radical sectors of his party who think he is negotiating with the United States. Human Rights Watch sends a letter to the United Nations criticizing the Venezuelan government for using criminal investigations to intimidate the opposition; Venezuelan “birther” movement further questions Maduro’s legitimacy; swarms of motorcycles in Venezuela’s capital are linked to violent crime; facing a shortage of hard currency, Christmas toys may be in short supply this year in Venezuela. Venezuelan inflation rises to 4.7 percent in June, reaching a staggering 40 percent for the past year; Venezuelan Central Bank says it will sell $200 million at auction in an attempt to alleviate shortages; the Central Bank of Venezuela removes the cap on the amount of U.S. dollars individuals are allowed to buy via Sicad; Venezuela’s restrictive hiring and firing practices discourage companies from filling openings, further dampening investment in the country; and Venezuelan daily oil exports to US fall 8.3 percent in the first half of 2013.

Venezuela offers asylum to U.S. fugitive Snowden, Reuters

Venezuela’s President Nicolas Maduro offered asylum to Edward Snowden who is believed to be holed up in the transit area of Moscow’s Sheremetyevo international airport; this action was made in defiance of Washington, which is demanding his arrest for divulging details of secret U.S. spy programs.

Many Venezuelans want better relations with the U.S., Pew Research Center

Poll shows that a plurality of Venezuelans (44%) prefer to have a closer relationship with the US than existed during the presidency of Chavez, while Maduro’s offer of asylum to Snowden would entail worsening ties with US, something that the Venezuelan public would avoid.

Venezuela may face economic sanctions if it grants asylum to Snowden, El Universal

Venezuela will face economic and diplomatic sanctions by the United States if Nicolás Maduro’s government grants asylum to former CIA agent Edward Snowden, who formally requested asylum to Venezuela on Monday.

With Snowden offer, Venezuela’s Maduro is on world stage, The Washington Post

American fugitive Edward Snowden’s diminishing possibilities of remaining free to continue releasing information about secret U.S. surveillance programs increasingly appear to hinge on Venezuela, which awaited word Monday on whether the former National Security Agency contractor would accept its offer of asylum and fly to the oil-rich country.

Letter to the UN about post-electoral violence in Venezuela, Human Rights Watch

Human Rights Watch is extremely concerned that Venezuelan authorities are using criminal investigations as a political tool to accuse the opposition, without adequate justification, of the commission of crimes.

Venezuela ‘Birther’ Movement Questions President’s Eligibility, Bloomberg

Venezuela’s opposition has been questioning Maduro’s Venezuelan nationality, since he was born in Colombia to Colombian parents, which would make his presidency fall foul of the constitution.

A circus without a ringmaster, The Economist

During the presidency of Hugo Chávez, who ruled from 1999 until his death from cancer in March, the domineering personality of the comandante left no doubt as to who was in charge of Venezuela.

Swarms of motorcycles in Venezuela’s capital tied to traffic chaos, violent crime, Washington Post

Ronald Alvarez was driving in chaotic, bumper-to-bumper traffic when he heard a throaty buzz and insistent “Beep! Beep! Beep!” approaching rapidly from behind.

Christmas toys may be in short supply in Venezuela, Reuters

Whether they’ve been naughty or nice, Venezuelan children might be stuck without Christmas presents this year.

Venezuela’s 12-Month Inflation Rate Advances to Just Shy of 40% in June, The Wall Street Journal

Venezuela’s 12-month inflation approached 40% in June after jumping 4.7% in June and 6.1% in May, pressured by a rise in government spending last year and in the wake of the country’s latest currency devaluation in February.

Venezuela central bank to sell $200 mln in forex auction, Reuters

Venezuela’s central bank said it will sell $200 mill at auction, of which $170 million would be allocated to businesses and $30 million to individuals, under its revamped currency system as government increases imports to alleviate the product shortages.

Central Bank of Venezuela removes cap in sale of US dollars to individuals, El Universal

The Central Bank of Venezuela (BCV) removed a cap limiting the amount of US dollars that individuals are allowed to buy via the Sicad.

Venezuela Forces Employment Even With Shuttered Factories, Bloomberg

Jean Salero gets up at dawn to clock in for his daily shift at a shuttered beer factory in the Venezuelan city of Barquisimeto.

Venezuela’s oil exports to the US fall in 2013, El Universal

Venezuelan oil exports to the US in the period Jan-Jun 2013 hit their lowest level since the 1990s, hitting 754,000 barrels per day from 823,000 bpd in 2012, amidst Venezuela’s strategy to prioritize clients and allies such as China or India and curb oil shipments to the US.

 
Jul
8
2013
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ICYMI: A circus without a ringmaster

The Economist
July 6, 2013

20130706 AMD001 0 e1373308466257 ICYMI: A circus without a ringmaster

Courtesy of: The Economist/Peter Schrank

During the presidency of Hugo Chávez, who ruled from 1999 until his death from cancer in March, the domineering personality of the comandante left no doubt as to who was in charge of Venezuela. By contrast Chávez’s successor, Nicolás Maduro, a former foreign minister, has yet to convince people that he is the one running the show. His disputed, razor-thin election victory on April 14th undermined his legitimacy (indeed, the supreme court has yet to resolve the opposition’s claim of fraud). Now the president faces problems within the ranks of the ruling coalition, and in particular his United Socialist Party of Venezuela (PSUV). In the absence of Chávez, there are worries that the PSUV will turn out to be held together, as the colourful Venezuelan metaphor has it, “with parrot spit”.

Fourteen years of chavismo have left the country in a mess. Despite the high price of oil, growth this year will be minimal or negative. Thousands of private companies have gone under, dragged down by regulations and threatened with fines, temporary closure or expropriation. Others have switched from production to importing. Even that is losing its appeal, now that foreign-exchange control mechanisms have seized up and dollars are scarce. Mr Maduro has sought to deal with the concerns of ordinary Venezuelans, as well as striking radical poses to please hard-core chavistas. Crime, poor public services, corruption and food-scarcity have been targeted with loudly trumpeted initiatives. But actually solving these problems will mean confronting powerful interests, and here Mr Maduro has little room for manoeuvre.

Moderates were encouraged when early in his presidency Mr Maduro sidelined Jorge Giordani, Chávez’s Marxist finance minister, and brought in Nelson Merentes, a former governor of the Central Bank who is seen as more ideologically flexible. But subsequent appointments seem designed to appease other interests. Amid talks with the private sector on how to get the wheels of commerce turning again, Mr Maduro last month reappointed Eduardo Samán head of the powerful consumer-protection body, a post he held under Chávez. A self-proclaimed “ultra-radical”, Mr Samán believes that inflation (heading for 40% a year) and empty supermarket shelves are caused by private-sector hoarding and speculation. “Humanity”, he has written, “will succeed in solving the food crisis only with the end of capitalism.”

Tentative efforts to tame corruption have also been undermined by a need to stay on friendly terms with the Chávez clan. On June 12th Argenis Chávez, the late president’s crafty youngest brother, was appointed head of the body that controls the administration of the justice system. On his brother’s watch, the younger Chávez had led the electricity ministry as well as Corpoelec, the graft-riddled state-run electricity giant. On becoming president, Mr Maduro quickly booted him out of both jobs. His return to office demonstrates the enduring power of the Chávez clan, as well as Mr Maduro’s willingness to subordinate the justice system to his political requirements.

Managing these rival factions has forced the PSUV to suspend internal party democracy. Grass-roots chavista radicals had backed Mr Samán’s bid to stand for mayor of Caracas. But party leaders, who see Mr Samán as a loose cannon, ruled out holding a primary that he might have won. Now the PSUV has cancelled all the primaries that were to have been held ahead of local elections, which have been postponed until December 8th. It remains to be seen whether choosing candidates by executive fiat will ruffle fewer feathers than the primaries would have done.

Our man in Havana

Rumours swirl that Mr Maduro could face a more immediate challenge to his own leadership. In a recorded conversation that was leaked on May 20th Mario Silva, the presenter of a state-television talk-show called “The Razor Blade”, was heard apparently passing information to a Cuban intelligence officer. In the recording Mr Silva warned the spy that Diosdado Cabello, the speaker of the National Assembly, wanted to overthrow Mr Maduro. It was a matter of urgency, he said, to cut off Mr Cabello’s sources of income, including the tax authority, which is run by his brother, José David Cabello. A few weeks later police arrested members of an alleged gang within the customs agency, which is part of the tax authority.

A former lieutenant who took part in a failed coup by Chávez in 1992, Mr Cabello has powerful friends in the army. The annual round of military promotions, due to be announced as The Economist went to press, may strengthen his hand. Henrique Capriles, the leader of the opposition, jeers that Mr Maduro’s role is confined to signing the promotions list. “Nicolás, you’re a laughing stock in the armed forces,” Mr Capriles tweeted.

During the presidential election campaign, Mr Maduro was seen as the favoured candidate not just of his predecessor but also of Cuba, Venezuela’s closest ally. A month ago, however, Mr Cabello made a three-day visit to Havana, holding meetings with President Raúl Castro and his brother, Fidel. The trip came shortly after the leaking of the Silva recording. No one knows what sort of deal the Cubans may have struck with Mr Cabello. For the moment, he and Mr Maduro are locked in a macho Latin embrace, of the kind some say was devised as a way for each man to frisk the other for weapons.

To read this article at The Economist, please click here.