Oil-for-loan debts cost Venezuela’s PDVSA hard-won India market share

Yahoo News-01CARACAS/HOUSTON/NEW DELHI (Reuters) – Venezuela’s state-run oil company, PDVSA, has spent at least a decade trying to build business ties and boost shipments to refineries in India, where crowds once welcomed the late socialist leader Hugo Chavez with cries of “Viva!”

Now, the ailing firm is being forced to slash sales to its crucial trade partner.

Venezuela has given up the fight for coveted market share in India because of a combination of declining crude production and heavy obligations under oil-for-loan deals with China and Russia, according to internal PDVSA data and two people familiar with the company’s strategy and operations.

Caracas needs the oil to pay debts to China and Russia, key political allies that have together lent Venezuela at least $50 billion in exchange for promised crude and fuel deliveries.

PDVSA and the Venezuelan Oil Ministry did not respond to requests for comment.

In 2013, when Venezuela exports and oil prices were high, PDVSA raked in nearly $14 billion from India, the world’s fastest growing large economy. By last year, after an oil price crash, that figure had plummeted to $2.7 billion, according to a Reuters analysis of the PDVSA data.

That means less cash income for the isolated South American economy, deepening a recession that has left many citizens skipping meals amid food shortages and soaring inflation. …

CLICK HERE FOR FULL ARTICLE

 

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Subscribe to our newsletter!

Latest Tweets by @IASecurity

Videos Featuring Our Experts

Roger Noriega on the Crisis in Venezuela: The world's response | IN 60 SECONDS

Venezuelan crisis: A brief history by Roger Noriega | IN 60 SECONDS

WAC Philadelphia: Latin America’s Role in 2017 and Beyond, feat. José R. Cárdenas

Promo for CNN's AC360°: "Passports in the shadows", feat. Roger Noriega

Ambassador Roger Noriega on PBS NewsHour discussing U.S.-Mexico relations under Trump

José Cárdenas Interview with Opinion Journal: "Hungry in Venezuela"

Ambassador Noriega Analyzes President Obama’s visit to Cuba on PBS’ ‘Newshour’

About

During the last several decades, the United States has invested billions of dollars in trying to help the governments of Latin America and the Caribbean deliver better lives for their citizens. This has meant helping them increase internal security by combating the illicit growing and trafficking in narcotics and the activities of terrorist groups, as well as helping them to shore up their democratic and free market institutions.

Unfortunately, in recent years, continued progress in these areas has been threatened, not least by the elections of radical populist governments in Venezuela, Bolivia, and Ecuador. These governments have instituted retrograde agendas that include the propagation of class warfare, state domination of the economy, assaults on private property, anti-Americanism, support for such international pariahs as Iran, and lackluster support for regional counter-terrorism and counter-narcotics initiatives.

We are a group of concerned policy experts that fear the results of these destructive agendas for individual freedom, prosperity, and the well-being of the peoples of the region. Our goal is to inform American policymakers and American and international public opinion of the dangers of these radical populist regimes to inter-American security.