Venezuela’s “Oil Fire Sale” To Benefit Russia, China

25 Aug 2017   Venezuela

The focus is the company’s ability to pay bond interest due in two months. Doing so is crucial. But as of this morning, that prospect is dwindling. Along with it goes the ability of the central government to administer an entire population and avoid the country descending into outright civil war. And PDVSA is at the center of it all. Now, there’s talk of U.S. sanctions on PDVSA in particular. Here’s how that may play right into Russia’s and China’s hands… This is Venezuela’s Oil Supermarket PDVSA is the vehicle for about 90 percent of Venezuela’s trade revenue and has served as a primary outside purchaser of all manner of staple commodities essential for the literal survival of a domestic economy rapidly sliding into oblivion. While charismatic Hugo Chávez was in power, PDVSA was required to spend foreign hard currency export proceeds held outside the country to acquire food […]

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