Commodities News

Venezuela Opposition Split by Offer for Iraq-Style ‘Oil-For-Food’ Plan

A proposal to change U.S. oil decrees on Venezuela to allow crude exportation to be exchanged for food has divided the nation’s opposition between those who say the measure would stave off famine and those who predict President Nicolas Maduro would ruin it.

Henri Falcon, the ex-governor of western Lara state, stated Thursday he wrote the United Nations and the U.S. House of Representatives Panel on Foreign Affairs demanding such an exception for meals and drugs imports.

Falcon won international prominence in 2018 when he broke a boycott to challenge Maduro in a vote many opposition parties deemed a sham. He faces an uphill battle to persuade the US and different opposition politicians of the deserves of this system.

The U.N. implemented a similar program in Iraq, another oil-dependent economic system, from 1996 to 2003 to assist residents in coping with U.N. sanctions after former chief Saddam Hussein attacked Kuwait in 1990.

Via early 2019, the USA was Venezuela’s largest crude importer. State oil firm PDVSA received cash from the oil it delivered to U.S. refiners, while it used exports to other main customers like China’s CNPC and Russia’s Rosneft to repay debt.

However, since the Treasury Division allowed PDVSA as a part of the Trump administration’s bid to pressure Maduro to step down amid a hyperinflationary financial collapse, PDVSA’s cargoes to the USA have disappeared, and Venezuela’s crude production has come to nearly half last year’s levels.

That has reduced the federal government income available to import meals and drugs. Defenders of the penalties argue that any oil sale proceeds are more likely to be misappropriated than used to import consumer goods.

Maduro remains in power regardless of the sanctions and a six-month-long campaign by Juan Guaido, the president of the opposition-managed National Assembly, to get the South American country’s armed units on his side.

Danielle Hollman

By Danielle Hollman

Danielle is a Market expert with vast experience in commodities. She also has expertise in marketing and international business communication in her career portfolio. She has worked with several entrepreneurs, financial services firms, and media houses. Danielle joined FBI Market News in 2018. Now, she is leading the Commodity column.

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