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Venezuela Owes Several Months of Oil Shipments to Russia and China

By: Sabrina Martín - @SabrinaMartinR - Feb 10, 2017, 11:25 am
(La Radio del Sur)
“These delayed shipments have provided an upfront view of PDVSA’s operation failures and their impact on this socialist nation’s economy.” (La Radio del Sur)

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On Thursday, February 9th, Reuters revealed that the Venezuelan state-run oil company PDVSA has not sent oil and fuel that it owes to China and Russia for months.

“Delayed shipments to these crucial political allies and trade partners, which have given Venezuela at least US $55 billion in credit, provide a new vision of PDVSA’s operational failures and its impact on the country’s socialist economy,” Reuters reports.

This media outlet also pointed out, “oil represents nearly all of Venezuela’s export earnings.” Therefore, “the PDVSA crisis” strongly affects “a nation suffering from three-digit inflation and a food shortage that reminds us of the Soviet Union.”

In fact, the latest estimates suggest that 87% of the country’s income comes from selling oil.

“The total value of the past due shipments to China and Russia’s state-owned companies  is about US $750 million,” according to the Reuters agency’s analysis of PDVSA’s documents.

Meanwhile, by the end of January of this year, PDVSA owed these companies at least 10 million barrels of oil. This amounts to a 10 month delay, according to the British agency’s information.

The statement said, “Shipments to China and Russia are critical for PDVSA’s financial health because companies in both countries buy around a third of PDVSA’s total oil and fuel exports.”

For years, the credit that both nations provided has been indispensable for Nicolás Maduro. In fact, infrastructure and social investment in Venezuela has been financed mainly by China.

Maduro is facing a domestic firestorm over economic collapse, threats to ban opposition political parties, and major social unrest that has gripped the nation in the wake of a collapse in global petroleum prices.

Source: Reuters

Sabrina Martín Sabrina Martín

Sabrina Martín is a Venezuelan journalist, commentator, and editor based in Valencia with experience in corporate communication. Follow @SabrinaMartinR.

Perú Judge Orders Arrest of Ex-President Alejandro Toledo for Odebrecht Corruption

By: Sabrina Martín - @SabrinaMartinR - Feb 10, 2017, 11:06 am
Alejandro Toledo is alleged to have taken a USD $20 million bribe for awarding a lucrative contract to Odebrecht (

Español A Peruvian judge issued a national and international arrest warrant for former President Alejandro Toledo for allegedly being involved in the continent's largest corruption case: receiving bribes from Brazilian construction giant Odebrecht. Toledo is alleged to have received at least $20 million in bribes from the Brazilian construction company. Read More: Peru's President Denies Accepting Bribes from Odebrecht Construction Firm Read More: Former Peruvian President is Planning to Flee Country to Avoid Odebrecht Scandal, Prosecutor Warns The judge ordered the preliminary imprisonment of Toledo for 18 months while the investigation continues. With this, Toledo becomes the most significant political figure in Peru to be indicted in relation to the Odebrecht case. Judge Richard Concepcion, head of the First Preliminary Investigation Court of the National Criminal Chamber, issued the arrest warrant sought by the anti-corruption prosecutor Hamilton Castro, who charged the former president with the alleged crimes of influence peddling and money laundering. googletag.cmd.push(function() { googletag.display('div-gpt-ad-1459522593195-0'); }); The judge considered that there are "elements of proof" that support with a high degree of reliability "the accusations against the former president." The magistrate rejected the request made by Toledo's lawyer, that the former president could have the opportunity to make periodic appearances in the court, instead of having to remain in prison while continuing the investigation. Toledo is outside Peru and apparently was in Paris last weekend, although his usual residence is in the United States, where he works as a researcher at Stanford University in California. This was one of the reasons that the magistrate used to order Toledo's imprisonment once he is captured, while other reasons cited were the complexity of the case and the seriousness of the crimes with which he is charged: crimes which could result in a sentence of at least four years in prison. According to prosecutor Hamilton Castro, Odebrecht and Toledo agreed to a payment of USD $20 million directly to the president if he was granted the company the contract for the Southern Interoceanic Highway, which runs through Peruvian territory from the Pacific Ocean to the Brazilian border. In exchange for this bribe Toledo would ensure that the deadlines would not be postponed and that the clauses of the contract could be modified to prevent business competition for the project, which was awarded an initial USD $1.2 billion, and a final cost of USD $2.3 billion. It is noteworthy that the leaders of the Brazilian construction company confessed in the United States to have paid USD $29 million to Peruvian officials between the years 2005 and 2014. Source: NTN24

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