Venezuela, Iran Presidents Hold Talks On OPEC Policy (Scummy and Scummier)

TEHRAN -(Dow Jones)- Venezuela's President Hugo Chavez held talks Sunday on OPEC policy and energy cooperation with his Iranian counterpart Mohammed Khatami in Iran's capital.

Chavez said the aim of the talks was to "defend" crude oil prices, to discuss the two countries' relations within the framework of the Organization of Petroleum Exporting Countries, and to promote relations in Iran's petrochemicals sector.

Khatami told reporters the talks would concentrate on OPEC issues. The producer group meets in Cairo on Dec. 10 to decide output policy ahead.

Both Iran and Venezuela are considered to OPEC hawks, potentially advocating a reduction in OPEC's production ceiling in a bid to prevent U.S. stock builds from further pushing down oil prices from recent near-record highs.

"Historically, OPEC is in its best position ever," Khatami told reporters before the meeting.

He extended his gratitude to Venezuela for its role in OPEC and in protecting the interests of producers and consumers.

OPEC is seen pumping at or near its available capacity, with 10 of its 11 members bound by the 27 million b/d quota agreement likely to produce around 28.4 million b/d this month, according to tanker survey specialist Petrologistics.

What else is Venezuela up to:

CARACAS, Nov. 27 (Xinhuanet) -- Venezuela plans to buy a large number of Russian arms, Venezuelan President Hugo Chavez said Saturday after meeting with his Russian counterpart Vladimir Putin.

Chavez, who was in Moscow for a visit, was quoted by the Venezuelan daily El Universal as saying in Moscow: "We are modernizing and reinforcing our armed forces to cope with any form of aggression."

According to Chavez, Venezuela will buy Russian assault rifles to strengthen its armed forces. The two presidents also talked about Venezuela's wish to "acquire a large amount of anti-tank andair-defense equipment," Chavez said.

Venezuela has already agreed to purchase Russian helicopters worth of 40 million US dollars, said Chavez, adding that the aircraft could start arriving early in 2005.

Chavez arrived in Moscow on Thursday for a two-day visit.

On Friday, the two sides signed a protocol on the conclusion of bilateral negotiations on the access to the commodity and service markets in the course of Russia's accession to the World Trade Organization.

They also signed a memorandum of understanding between Russia'sLukoil and Venezuelan state oil company PDVSA, an agreement on cooperation in containing money laundering and an intergovernmental agreement on fuel and energy cooperation.

http://news.xinhuanet.com/english/2004-11/28/content_2269110.htm

Venezuela to Sell $250 Million of 30-Year Bonds (Update1)

Nov. 29 (Bloomberg) -- Venezuela will sell as much as $250 million of 30-year bonds in the domestic market, tapping into local investors' appetite for dollar-based assets.

The notes will pay an annual interest rate of 9.375 percent, the Finance Ministry said in a statement on its Web site. The sale will conclude on Dec. 2 and the government will release results the next day.

The sale is too small to satisfy demand for dollar- denominated securities from Venezuelans -- many of whom lost access to dollars when the government imposed restrictions on foreign currency purchases in January 2003 to halt a tumble in international reserves, said Miguel Octavio, executive director of BBO Financial Services in Caracas....

(more at http://www.bloomberg.com/apps/news?pid=10000086&sid=aj3vzJIRqfUk&refer=latin_america )

And you ask why we need to raise interest rates?

MOSCOW - Russia and Venezuela have signed a protocol to confirm completion of bilateral talks on access to the markets of goods and services within the bounds of the process of Russia's admission to the World Trade Organization (WTO).

The protocol was signed after a meeting of the Presidents of Russia and Venezuela, Vladimir Putin and Hugo Chavez, the Echo of Moscow radio station reported.

The two countries also issued a joint declaration on bilateral cooperation in the energy sector, including exploration, production, transportation, processing, storage, sale and use of energy resources.

Additionally, Russia and Venezuela signed an agreement on fighting legalization of criminal incomes.

http://www.russiajournal.com/news/cnews-article.shtml?nd=46526

VHeadline.com - "In a column published in today's editions of the The Miami Herald, the unattributed editorialist clarifies the Herald's opinion that (Venezuela's) President must ensure a clean probe of political murder.

The Miami Herald continues: Under President Hugo Chavez, the rule of law in Venezuela has been deteriorating steadily -- some would say precipitously -- for a long time. Two recent events have made matters much worse.

The Chavez-controlled Congress last week approved a ''media reform'' bill that imposes stiff censorship on one of the few remaining independent institutions in the country. More urgently, the assassination of prosecutor Danilo Anderson 10 days ago has set off a series of arrests and at least two police killings of ''suspects'' under circumstances that are far from clear.

Political killing: Mr. Anderson was said to be investigating some 400 opposition leaders and businessmen who supported a 2002 coup that briefly ousted President Chavez from power. There is ample reason to believe his killing was politically motivated. His killers should be arrested and brought to justice as quickly as possible. But surely it is self-evident that the investigation must also be transparent and free of self-serving political manipulation -- which so far hasn't been the case.

http://www.vheadline.com/readnews.asp?id=23735

Flashback to 1999:

George Soros, who bought the Argentine real estate company IRSA Inversiones y Representaciones SA in 1991 for $120,000, reduced his stake in IRSA in late July by selling $14.3 million worth of the company, or 2.5 percent.

Soros' Quantum funds still own 13.5 percent of the company. When Soros bought IRSA, it had no significant assets. Now the firm has interests in shopping centers, residential and commercial developments, commercial rentals and hotels and has a market capitalization of $527 million. Soros also owns 40 percent of Fondo de Valores Inmobiliarios SACA, a Venezuelan real estate company.

CB Richard Ellis opened an office in Caracas, Venezuela, last week. The firm stated, "Our decision to move forward in Venezuela was based on the strategic importance we feel Venezuela has and will continue to develop in the region. Although there is work to be done and the country is going through challenging times, we are confident of Venezuela' bright future."

Many private investors put off projects since the December election of President Hugo Chavez because of uncertainty about his economic plans.

Venezuela's economy contracted 7.5 percent in the first six months of 1999 as the country's recession worsened, and developers slashed the prices of new buildings because of weak demand. The economy could improve in the second half if a government employment plan goes forward.

http://www.irei.com/newsarc/august99/080599.html

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