Venezuela Debates State Role in Oil Distribution

Venezuela may seek to increase national control of fuel distribution, according to the AP today. The National Assembly votes today a bill which could require private fuel distributors to sell their assets to the state-owned oil company, PDVSA. Joint ventures between PDVSA and private firms have not been ruled out, however. The Caracas newspaper El Universal reports that government officials in Venezuela have said that gas stations will not be expropriated, and that “It will be a gradual change.” The AFP reports that some experts are concerned about the possibility of reduced private investment in Venezuela, while others say the state’s joint ventures with foreign firms “would make no impact on investment levels in the country.”

A new anti-poverty program in Venezuela, called Mission April 13, was launched this week. Venezuelanalysis reports that the new social program — one of over two dozen that now exist — will work with existing state agencies to improve the infrastructure and public services (such as water, sanitation, and electricity) available in poor neighborhoods. Meanwhile, Reuters reports on Venezuela’s assistance to Honduras. The small Central American nation will receive secure oil supplies from Venezuela through the regional group ALBA. Reuters notes that Honduras is no longer a top U.S. ally as before, but that it is a member of the free trade bloc CAFTA at the same time that it participates in the more progressive ALBA.

Just weeks after President Chavez hosted Jewish leaders at the Presidential Palace to make clear his support for the Jewish community in Venezuela and worldwide, the Los Angeles Times reports that U.S. officials now say Venezuela harbors the radical Islamist group Hezbollah. The Times quotes a single unidentified “anti-terrorism official” to make a case for which there is no concrete evidence. In a politicized move in June, the U.S. Treasury accused two Venezuelan officials of raising money for Hezbollah. Though the charges have been denied and remain unverified, the U.S. State Department has also used them to accuse Venezuela.

Finally, the Post and Courier of Charleston, South Carolina, runs an editorial today accusing President Chavez of being a “dictatorial” leader that has “whittled away” democracy. However, his so-called “authoritarian” measures were all cast aside in December after a fully democratic vote in which Venezuelan citizens narrowly struck down the proposed laws. In contrast, an L.A. Times editorial warns that Colombian President Alvaro Uribe — beloved by the Bush regime — is attempting to unilaterally change laws in order to remain in power.

Honduras Joins Venezuela and Others in ALBA Group

Honduras joined the Bolivarian Alternative for the Americas (ALBA) Monday, becoming the sixth member of the regional group (Honduran President Zelaya is pictured here at the far right). Energy cooperation is a central part of ALBA, and Honduras is now guaranteed to receive oil from Venezuela. Reuters wrongly calls President Chavez a “U.S. foe” and dismisses ALBA and other agreements as attempts by Venezuela to “expand influence” in the region. Instead, the Chavez administration’s use of oil profits to reduce poverty and create cooperation among Latin countries is a bid to foster unity and stability in the hemisphere. All countries including the U.S. — which receives Venezuelan oil assistance, too — are eligible to join ALBA.

In other energy news, Venezuela will soon sign oil deals with South Africa and Vietnam. A bilateral accord with South Africa planned for next week could produce joint ventures in oil exploration with that country’s national oil firm, according to Reuters. Bloomberg reports that Venezuela’s PDVSA and PetroVietnam are in talks on five shared oil projects. Meanwhile, compensation talks between PDVSA and Conoco regarding last year’s nationalizations in the Orinoco Belt are still progressing, Reuters reports. Officials will meet next week.

An opinion piece in Vermont’s Burlington Free Press criticizes Venezuela’s charity programs in the U.S. through Citgo, which donated $100 million in home heating oil to poor families in 23 states last winter. After a prior op-ed that cheered the assistance, this one rejects it and repeats several falsehoods. It wrongly states that employment is down — it has risen consistently, as have wages — and that “only state control of media outlets presently is allowed,” when in fact the private media still dominates in Venezuela. Colombia’s allegation that Chavez aided the FARC rebels is also repeated, though it remains unproven and is rejected by many experts. Also, President Chavez has never sought to “eliminate legal elected opposition” in Venezuela; regular free and fair elections are a central part of Venezuela’s democracy.

Finally, accusations against Venezuela regarding the media and alleged support for Colombian rebels are also the subject of articles by El Nuevo Herald and the AP today. First, El Nuevo Herald reports that President Chavez is seeking to “crack down” on the free press in Venezuela, and bolsters the empty claim by citing only anti-Chavez sources. Meanwhile, the AP reports that the leader of the National Cattle Ranchers Federation of Venezuela says the government is sheltering Colombian rebels. While Colombia’s armed conflict is still a threat to peace and stability in neighboring Venezuela, many measures have been taken to increase border security.

Venezuela Invests in Petrochemicals, Sports Programs

Venezuela has invested almost $1 billion in its petrochemicals sector to boost the production of oil derivatives and become more competitive with other countries such as Brazil. AFP reports that President Chavez explained the new investment, which comes as part of a plan initiated last year, as a means of limiting Venezuela’s dependence on imports. In other economic news, the Mexican cement company Cemex was nationalized last week after refusing to negotiate with the Venezuelan government. However, the AP reports that President Chavez said Saturday that he is still open to talks with the company and that “We want to settle this in a friendly way.”

In international news, Venezuela has been criticized again by U.S. drug officials, who accuse the country of doing to little to stop cocaine smuggling. Situated between the world’s largest cocaine producer, Colombia, an its largest importer, the U.S., Venezuela has consistently battled the flow of drugs. After a Panamanian tanker was seized leaving Venezuela with 4.6 tons of cocaine last Friday, the White House drug czar wrongly told the press that the Venezuelan government has “no willingness” to cooperate with the U.S. In fact, President Chavez has told the U.S. Ambassador on several occasions that he wishes for better relations, and particularly to work together on counter-drug operations. Foreign Relations Minister Maduro also said earlier this month that Venezuela seeks to improve anti-drug cooperation throughout the hemisphere.

The New York Times reports that the U.S. fears worsening relations with Russia, and wrongly counts Venezuela among a list of “anti-American” countries. Venezuela has a long history of good relations with the U.S., and has sought to sustain ties despite threats. Meanwhile, the AP reports that President Chavez said he would accept a Russian fleet in Venezuela if that country chooses to station itself in the region.

Finally, Venezuela’s oil company PDVSA has announced that it will begin a new social program dedicated to training athletes. Venezuela sent over 100 competitors to the Beijing Olympics, according to the AP, but came away with just one bronze medal.

Combatting Drugs with Brazil, Energy Agreements with Vietnam

The Associated Press reports on counter-narcotics military excercises underway along the Brazil-Venezuela border today. Troops from both nations are participating in a four day long joint anti-drug training program which will train soldiers to identify drug smuggling planes, a problem faced by both countries given they are major conduits for Colombian cocaine headed to the US and Europe. For some time, US officials have accused Venezuela of not doing enough to combat drug-trafficking. Despite this, Venezuela continues to attack the problem. Yesterday, Venezuela’s Supreme Court stated that it will honor its extradition agreement with Belgium and turn over a Lebanese man convicted of drug trafficking and money laundering.

The Mexican cement company, Cemex, will file an arbitration claim with the World Bank in hopes of receiving “fairer compensation” for its operations in Venezuela, announced a spokesperson for the firm late last night. Venezuela has offered to pay $650 million but Cemex has demanded $1.3 billion. Venezuela’s Vice President recently said this figure was “well above its real value.” Meanwhile, cooperation agreements with Vietnam are moving forward, reports Agence France Presse. The countries will create two joint oil refining companies, “one to transport oil to Vietnam and the other to refine that oil in Vietnam, at a refinery we jointly own,” said Rafael Ramirez, Venezuela’s oil and energy minister. Venezuela and Vietnam also plan to build a production facility to make energy-saving lightbulbs in Venezuela and are expected to announce a new oil exploration agreement in the Orinico belt region on September 15.

The Financial Times takes aim at Venezuela in an editorial today entitled “Containing Chavez”. The Times argues that a new Washington Administration should take heed of Chavez’s growing influence in the region and devise a plan to counter it, while wrongly claiming that President Chavez has betrayed the Venezuelan electorate and is centralizing power. Although the Times does call for some positive measures, such as ending the US trade embargo on Cuba and increasing efforts to support health care and home ownership in Latin America and the Caribbean, it wrongly asserts that inefficiency and mismanagement along with a growing dependence on oil will bring down Venezuela. Meanwhile, efforts to diversify and combat corruption and nepotism in Venezuela are well underway.

Finally, Venezuela won its first medal yesterday at the Summer Olympics in Beijing. To read more visit our blog, VenWorld.

Economic Growth Continues, Cement Companies Go National

Venezuela’s Central Bank shows economic growth of 7.1 percent during the second quarter of 2008, reports the Associated Press today. Non-oil related GDP continues to rise at the fastest rate by 7.8 percent, while oil-related GDP grew 3.2 percent. Communications and construction showed the largest expansion at 24.6 percent and 11.7 percent respectively. In related news, Oil Minister Rafael Ramirez said that if there appears to be a trend in the decline of oil prices, “Venezuela would have to analyze the possibility of a production cut.” He made the remarks while talking about an upcoming OPEC meeting which Venezuela will attend next month.

In other economic news, the Los Angeles Times covers the negotiation process between foreign cement companies operating in Venezuela and the government, as a two month long negotiation period draws to a close. Although, French and Swiss companies have agreed to new terms and will sell a majority stake of their companies to the Venezuelan government, Cemex, a Mexican owned operation, failed to come to an agreement with Venezuela. Cemex asked for roughly $1.3 billion in compensation, which Venezuela deemed excessive. Despite this, Venezuela took control of the operation yesterday and will pay “fair value for the firm” according to Venezuela’s energy minister, Rafael Ramirez. The government plans to utilize the cement companies in a national project to build homes for the poor.

Finally, the South African press reports that President Chavez will visit South Africa in early September on the invitation of President Thabo Mbeki. According to the Venezuelan embassy there, the visit is scheduled to take place between September 2-3 and aims to bring closer cooperation between the two nations and the creation of a bi-national commission.

President Chavez Pledges Oil to Paraguay

Last weekend, President Chavez was in Paraguay meeting with the newly inaugurated Fernando Lugo (seen here). The two leaders signed a dozen accords, including one in energy that the AP reports will guarantee Paraguay 23,500 barrels of Venezuelan oil per day. According to Bloomberg, President Chavez said “All of the oil that Paraguay needs during this century it will have guaranteed by Venezuela for the development of its people, industry and agriculture.” Chavez addressed a crowd of poor Paraguayans, the Los Angeles Times reports, and demonstrated his desire for strong ties with the new leader of that small South American nation.

In other regional news, Venezuela will sell more gasoline to border areas of Colombia in an attempt to discourage the smuggling of that product. The Information Ministry said that this is part of “a series of measures in the border region of Venezuela will be activated, with the objective of eradicating the illegal extraction of gasoline.” Meanwhile, Venezuelan officials hope to launch an observation satellite within five years to improve telecommunications. Reuters wrongly deems Venezuela a “Washington foe,” when in fact the Chavez administration seeks dialogue with the U.S.

In economic news, nationalizations in Venezuela’s cement industry are going ahead, according to the AP. Compensation talks have been held with foreign companies, and private investment will remain present — the Venezuelan state aims for 60% ownership. Some mining industry activity will be curtailed in the southern region of Venezuela due to environmental concerns, according to Bloomberg. Gold mining, in particular, will be limited to an area the size of 10 million acres.

Finally, Venezuela’s President Chavez weighed in on the Russian attacks on Georgia last week, issuing a critical perspective on the U.S. role. Reuters reports that Chavez said that the Russians were responding to provocation. He also suggested, according to the AP that the Georgian president is “a puppet” of the U.S., which seeks to weaken Russia.

Notorious Americas Terrorist Faces Trial for… Immigration Fraud?

Luis Posada Carriles, the notorious bomber that has been called the worst terrorist in the Americas, will finally face a trial in the U.S. — but only for immigration fraud. A New Orleans court of appeals ruled yesterday that his earlier dismissal was unlawful. The Los Angeles Times reports that yesterday’s decision “was expected to take the pressure off the Bush administration to respond to Venezuela’s demands that Posada, who lives in Miami, be extradited to face trial.” Venezuela’s extradition requests for Posada Carriles have gone ignored for over 2 years despite binding treaties that exist between the countries.

In Venezuela, unemployment has fallen yet again. Dow Jones newswires reports that joblessness is down one and a half percentage points over last year to reach 7.2%. The rise illustrates a boost in formal sector employment and a decline in informal sector activity.

A new law approved yesterday by Venezuela’s National Assembly is designed to crack down on kidnapping. According to the BBC, this is the first time that Venezuelan law has made specific reference to the crime, which has risen in recent years but may already be declining. Official figures show less kidnappings occurred in the first part of this year than in the same period last year. The new legislation gives kidnappers a penalty of 30 years in jail. This is one of several government initiatives to fight crime.

Finally, the AP reports that a Jewish organization known as the Wiesenthal Center has issued a stiff warning to President Chavez after he met with Jewish leaders in Venezuela to dispell unfounded claims that he is anti-Semitic. The Center said it expects more action. The allegations of anti-Semitism against Chavez have persisted in the media despite their lack of validity.

Venezuela’s Chavez Holds Key Meeting with Jewish Leaders

Yesterday, President Chavez met Jewish leaders in Venezuela (pictured at right). The head of the World Jewish Congress said, “We mentioned our concerns about anti-Semitism and asked him what his position was… And he said he was certainly not an anti-Semite.” This issue has for years been among the worst media misrepresentations of the Venezuelan leader. President Chavez called it “very important meeting,” according to the AP. To read a transcript of statements made at yesterday’s meeting, click here.

In regional news, Bolivian President Evo Morales has extended an olive branch to his political opponents after winning a recall referendum last Sunday. Reuters reports that Morales and opposition leaders agreed yesterday to meet “with an open mind.”

President Chavez is attending today’s inauguration of the new Paraguayan leader, Fernando Lugo. Newsweek prints an interview with Lugo, a former Bishop who says, “I am a centrist, like the hole of a poncho, standing above political parties.” Reuters reports that Lugo plans to help the poor by pursuing land reform and other policies. His administration marks a break from 61 years of one-party rule.

Venezuela Prepares for Elections, Promotes Food Security

Registration closed yesterday for candidates in Venezuela’s regional elections this November. According to the AP, nearly 7,000 people threw their names in the hat for mayoral and gubernatorial seats across the country. A law dating back to the 1970s that prevents individuals facing corruption charges from running for public office has stirred controversy. Opposition members claim they are unfairly barred from competing in elections, but Venezuela’s Supreme Court recently found that the law is indeed constitutional.

Venezuela’s energy assistance program for the Caribbean, Petrocaribe, is helping to provide food security in its 18 member countries. According to Reuters, it was announced yesterday that the countries will be eligible for $2 million-dollar grants for agricultural development. A rep from the Dominican Republic said: “President Chavez’s initiative to provide these funds provides us with some tranquility and a way we can together tackle the great challenges poor countries face.” Assistance from Venezuela has also been welcomed by poor people in Peru after last year’s major earthquake, Reuters reports.

Also in economic news, Venezuelan government continues to loosen controls on food prices. Price caps on basic goods such as meat and bread were lifted yesterday to boost supply and address the concerns of producers. The controls were designed to help Venezuela’s consumers, though, and their removal has already caused price hikes of 20-50%, according to the AP. The BBC reports that inflation is a continuing problem.

Finally, a Washington Post op-ed examines what is seen as “the rise of a multi-power, non-Western-dominated planet.” It recalls prior U.S. interventions abroad in Cuba and Nicaragua, and more recently when the Bush administration “green-lighted an attempted coup against Venezuela’s Hugo Chavez in 2002.”

Enough Oil to Go Around

Last week marked one year since the Venezuelan government’s purchase of a majority stake in Orinoco Oil Belt projects. El Universal reports that PDVSA, Venezuela’s state oil company, announced new investments in the lucrative region that will double oil production within the next five years and certify nearly 100 billion barrels of oil reserves. Orinoco Belt oil production rose by 174,000 barrels per day in the last year.

Also in economic news, the BBC reports that Venezuelans faced with financial woes often contemplate emigrating abroad. Young professionals in particular face this dilemma. However, others remain positive about the state of the economy, and point to the successes of free education and health care. The director of a health clinic said, “Until not long ago all that oil money was used to benefit the elite… What we want is to have a society where everyone improves.”

In regional news, Bolivian President Evo Morales is promising dialogue with the political opposition after winning a recall referendum last Sunday. The AP reports that Morales said he represents “the entire Bolivian family.” Leaders in the region have congratulated Morales on his victory, including President Chavez, who emphasized the importance of Indigenous leadership. Meanwhile, the Wall Street Journal considers global politics and wrongly refers to Venezuela as an “anti-American antagonist” and a threat to stability. Venezuela’s foreign policy has challenged US political hegemony, but has also included economic assistance to the American people and a willingness for dialogue.

Finally, Venezuela’s first ever women’s Olympic team saw a defeat at the hands of the US yesterday in softball. The Los Angeles Times reports. The catcher for the Venezuelan team is featured by Reuters, which reports that the 41-year old Zuleyma Cirimele has waited two decades to compete the Olympics.