The Big Stories to watch this week in LATAM
Shady financing in Venezuela over oil deals. Peru may topple another president, and the US boat bombings just don't stop, despite Maduro being gone
Shady Dealings in Venezuela
The United States is easing sanctions on oil sales in Venezuela. Combined with a new reform bill passed last week by the Venezuelan legislature that opens up opportunities for partnerships for state owned oil company PDVSA and foreign companies, it seems both governments are keen to move towards increased sales — and courting investment to repair badly decayed infrastructure.
The US has controlled oil sales in the country since the US abduction of former President Nicolas Maduro in January.
Both Delcy Rodriguez, current interim leader of the country, and US President Donald, however, have described US-Venezuelan relations in flattering terms.
Highlighting the new relationship, US Energy Secretary Chris Wright released a series of videos of a US delegation touring energy production facilities this week with Rodriguez in which the two chatted amicably in English.
The visit was full of smiles, handshakes, and photos of the two in front of oil production infrastructure.
Wright is the first high-ranking US official to visit Venezuela since the Clinton administration.
Wright spoke of $500 million in investment within the next 18 months as a first step towards boosting Venezuelan production.
“This is the way forward. This is the path of cooperation, and it is the agenda for a long-term productive partnership,” Rodríguez said to journalists invited to the photo-op.
State media within Venezuela, which for decades has been sharply critical of the US, has largely fallen behind Rodríguez’s approach to US business relations.
Many experts last month predicted fractures within the Chavista power structures. Those have so far not materialized publicly.
The atmosphere in Caracas has relaxed in recent weeks, with large demonstrations by both opposition and Maduro loyalists. The Rodriguez government has also released over a hundred political prisoners, though one high-profile opposition leader has since been placed under house arrest.
The US has faced reluctance from oil countries to invest in the country, however, as well as criticism from many experts and lawmakers about a lack of transparency in how the US is handling the money generated from Venezuelan oil sales.
PWS is working on a piece about exactly that set to be published this week, but the short version is that the financing is subject to Trump’s whims and prone to corruption. It also places the US firmly in control of how much money Venezuela receives, fitting with US visions of the country as a new vassal.
Peru may topple another President
Peru’s Congress debates this week whether to remove right-wing President Jose Jeri from office amidst allegations of corruption. The session will take place Tuesday.
In October, Jeri — the leader of Congress at the time — took over as president following the unanimous impeachment of his predecessor, Dina Boluarte, on the grounds of “permanent moral incapacity”.
He was sworn in with little ceremony in a late night Congressional setting and is set to leave office in only a few months, following April elections.
Boluarte became President after an attempted coup by her predecessor and former running mate Pedro Castillo after he attempted a failed “auto-golpe”.
Peru has had 8 presidents in 10 years.
The corruption accusations arise from a series of late-night and apparently secret meetings with business magnates in Lima.
US Boat killings continue unabated
The U.S. announced another boat-bombing against a boat allegedly carrying drugs in the Caribbean on Feb 12, bringing the total number of strikes to 35, resulting in 131 deaths.
The extra-judicial killings were initially framed as a way to pressure Venezuelan President Nicolas Maduro into leaving power, a point which now seems moot.
The Washington Office on Latin America (WOLA) has a long-form piece about how Trump is using the strikes as a way to commit evidence-free assassinations. It’s a stunning abuse of power and a dangerous precedent for US power projection.
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Hasta pronto, piratas!
