VIO News Blog

March 30, 2009

Venezuelan President Travels to Asia

Today President Chavez set off on an official trip that will take him to Qatar, Iran and Japan, the AP reports. In Qatar, Chavez will attend a summit of Arab and South American Countries. In Iran, he will inaugurate a joint development bank between that country and Venezuela. He will then visit Japan to approve a bilateral energy pact, which will give Venezuela access to Japanese technology for its oil industry.

The Wall Street Journal reports that U.S. officials froze a Bank of America account which had been used to carry out numerous transactions on Venezuela’s black market currency market.  The owner of the Miami-based company that controls the account,  Rama Vyasulu, has been arrested for allegedly laundering $900,000 in drug profits.

An article in the Economist print edition, “Hard landing” argues that spending cuts announced by President Chavez will have a bigger impact than the government is publicly admitting. The Economist states that according to  Finance Ministry’s figures, there was only $6 billion left in the National Development Fund (FONDEM) at the end of December, instead of the $57 billion publicly stated by Finance Minister Ali Rodriguez.  The article does not appear to take into account the vast quantity of foreign reserves that remain in the hands of the Central Bank and the Venezuelan government.

An AP article argues that the slump in oil prices has recently caused Venezuela to begin seeking foreign investment for its oil industry. However, Venezuela has shown openness to oil partnerships with multinational and state oil companies so long as they respect Venezuela’s sovereignty and majority stake. Venezuela began soliciting bids for oil exploration and production in the Orinoco oil belt in the Summer of 2008, when oil prices hit record highs.

Finally, an op-ed in the Milwaukee-Wisconsin Journal Sentinel argues that Milwaukee’s sister city agreement with Carora, Venezuela serves as a propaganda tool for Chavez.  A Heritage Foundation expert is quoted criticizing the plan for Carora to establish a Casa del ALBA in Wisconsin’s largest city.  The truth is, the “expert” says, Casas del ALBA are “centers of pro-Chavez indoctrination.”

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