VIO News Blog

January 12, 2009

Venezuela Sends Heating Oil to US, Medicine to Gaza

“No, it was never suspended,” President Chavez said Saturday in reference to Venezuela’s home heating oil assistance program in the U.S. through Citgo. The aid effort is in its fourth year, and has grown to reach about a quarter of a million poor families. The AP reports that the Venezuelan leader finally weighed in to counter those who claimed the aid was being cut off, saying, “they built this analysis on a lie.”

Another issue in the media refuted by officials over the weekend was that of oil industry layoffs. The AP reports that anti-Chavez labor unionists had claimed that Venezuela’s PDVSA dismissed 4,000 contract workers due to output cuts, but on Friday, the company’s vice president dismissed the rumors. Also in economic news, the AP states that oil output cuts mandated by OPEC are contributing to slowed economic growth in Venezuela, but fails to mention that the longer term intent of those cuts is to adjust to lowered demand and move toward more stable prices. Venezuela’s gross domestic product grew by 8.4 percent in 2007 and 4.8 percent in 2008. Finance Minister Ali Rodriguez indicated last week that the government is developing new measures to address economic downturn, but will not devalue the currency or impose new taxes.

Venezuela is sending 12.5 metric tons of medicine to the Gaza strip via Egypt, according to the latest AP report. “It is the least we can do,” President Chavez said yesterday. The AP states that Chavez “has forged strong ties with numerous Arab nations,” forgetting that Venezuela’s ties with the Middle East go back at least to the 1960s when OPEC was formed.

Chavez spoke yesterday of suspicions that a U.S. Embassy official attended a meeting of opposition leaders in Puerto Rico, sources report. “If this is proven,” he said, the diplomat would be expelled. In his televised address, Chavez recalled the U.S. backing enjoyed by Venezuela’s last dictatorship, which ended in 1958, and the U.S. role in negotiating a subsequent failed power-sharing pact between two political parties.

Finally, in other international news, the Financial Times proclaims: “Washington’s clout in Latin America is waning.” This refers chiefly to the economy, and the rising importance of other nations such as China and Russia. The Times calls it a tough “battle for influence.” Similarly, the Los Angeles Times reports on Venezuela’s strengthened economic and military ties with China.

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1 Comment »

  1. Read an analysis on how Venezuela may curb its foreign assistance programs given falling oil prices and growing inflation. http://carlosmaciasweb.com/2009/01/08/venezuelas-oil-diplomacy-may-dim-010809/

    Comment by Carlos Macias — January 12, 2009 @ 4:24 pm | Reply


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