An Act Of War!
U.S. Imposes Oil Blockade to Force Venezuela into Default
By Misión Verdad
“Information Clearing House” – The U.S. is betting on the default of Venezuela affecting its financial credibility and hampering its debt repayments.
While continuing the commercial and financial embargo and the systematic attack on PDVSA, it was revealed at the start of November that imports of Venezuelan oil to the United States this year have declined to 56 percent compared to last year. This multi-pronged attack that this state industry is facing as the main foreign exchange earner of the country, has been run by a network of internal allies, many of whom have been detained by the Public Prosecutor’s Office in recent months. This was after the former Attorney General Luisa Ortega Diaz became a key factor in allowing the continuity of these mafias to operate within the company.
In addition to corruption and internal sabotage, PDVSA is facing a series of sanctions for the issuance of debt, which has also complicated transactions with U.S. refineries for the purchase of crude oil. In recent months America’s banks, under pressure from the U.S. Treasury Department, have restricted credit notes that U.S. refineries need to pay for Venezuelan oil. The result is that imports and dividends in dollars have been reduced by half in comparison to 2016.
Trump did not dare take the measure of prohibiting imports from Venezuela, given the many interests of U.S. companies involved, but this multi-pronged attack is making any explicit prohibition unnecessary. The measures taken have managed to make a dent in exports of oil to that country. All this is with the objective of continuing to strangle the Venezuela’s economy and force the nation into a debt default by restricting purchases by U.S. refineries.
Forecasts in respect of servicing PDVSA bonds for these dates have been varied. According to Kapital Consultants, between October and November PDVSA must comply with payments of US$3.525 billion for a total of approximately US$9 billion paid in debt interest and capital for the year 2018. As usual, the partial information in this report was used as a means of propaganda by the Venezuelan opposition to confuse and sow doubts about the payment capacity of the company.
According to President Nicolas Maduro, the Republic and PDVSA have paid more than US$71.7 billion in the last four years for capital and debt servicing.
These maneuvers against PDVSA are not isolated and form part of a framework of actions imposed since the Barack Obama administration issued an executive decree which declares Venezuela as a “threat to the national security” of the United States, behind which were the major U.S. oil corporations.
Reports from Reuters and other national media about PDVSA’s alleged inability to pay are part of this plan, adding fuel to the fire of financial terrorism directed from the Rating Agencies against Venezuela as well as from some opposition leaders such as Julio Borges who continues pushing for sanctions.
The U.S. is betting on the default of Venezuela affecting its financial credibility and hampering its debt repayments, as part of a maneuver to force a default on payments that would allow the violation of PDVSA’s international assets and partially block its oil income. However, the timely payments by Venezuela have prevented the default from happening, even if the rating agencies, the treasury department and some Wall Street banks keep pushing in that direction.
But given that this action in the financial war has not yielded the expected results, the U.S. looks as if it will take the road of the oil embargo as its ace card. The objective of pressuring banks and U.S. refineries from buying Venezuelan crude seeks to restrict the flow of dollars into the Venezuelan economy which are used for various purposes – such as debt repayment and imports of basic goods…..more here