Posted on 12/26/2018 6:42:09 PM PST by Kaslin
We already learned that Russia was sending bombers to Venezuela for military exercises and supporting the country’s imploding economy. What could Vladimir Putin have wanted in exchange? We’re probably seeing the answer come into focus as Russia moves in to “help” Venezuelan dictator Nicolas Maduro as we head into the new year. Putin is going to bail out Maduro’s failing government with some cash in exchange for establishing some measure of control over that nation’s vast crude oil reserves that are currently lying mostly dormant. (WaPo)
As allies go, Venezuela is a relatively cheap one for Russia. But the potential returns on Moscow’s investment there could be priceless.
In exchange for modest loans and bailouts over the past decade, Russia now owns significant parts of at least five oil fields in Venezuela, which holds the world’s largest reserves, along with 30 years’ worth of future output from two Caribbean natural-gas fields.
Venezuela also has signed over 49.9 percent of Citgo, its wholly owned company in the United States — including three Gulf Coast refineries and a countrywide web of pipelines — as collateral to Russia’s state-owned Rosneft oil behemoth for a reported $1.5 billion in desperately needed cash.
This is bad news for Venezuela and also an undesirable development for the United States. We’re currently in a battle with the Russians (among others) for dominance in the international oil and gas market. We’ve only recently gained the upper hand in that arena, but with Russia now owning half of Citgo and holding the banknotes on much of Venezuela’s proven crude oil reserves, that’s going to give them a serious leg up.
The reason this bodes ill for the people of Venezuela is equally obvious. The only way they’re going to rid themselves of their tyrant (absent some sort of external military intervention which is unlikely in the extreme) is if Maduro’s corrupt socialist kleptocracy collapses under its own weight. The dictator’s continued hold on power depends on his access to cash to keep all of his schemes funded and his militias on the payroll. If he can’t manage that, someone is likely to take him out sooner or later. Venezuela’s currency is currently worth absolutely nothing, so Maduro relies on gold and hard money from stable countries to remain in business.
This new infusion of billions of dollars from Russia, along with their military presence in the country cowing Maduro’s opposition, may be a deal with the devil but it will likely keep him in power for quite a while longer. And that means there will be no relief for his starving people and no chance to reestablish some form of functional government. Meanwhile, Putin clearly would rather have a tinpot socialist dictator who he can control in charge of Venezuela instead of any sort of more enlightened government.
Maduro brought this loss of control on himself by plundering Venezuela’s national oil company and effectively shutting down production. But his problems are producing a ripple effect which impacts everyone else. In some ways, Russia is currently winning a war in South America without firing a shot. And that’s definitely not good news for the west.
That is better than Venezuela controlling it.
Putin has forgiven their debt many times. Nothing new.
Russia’s got plenty of their own oil, and yet they’re still a third-world country (albeit with nukes).
Is the name going to change to Citolov?
Product of Davos.
1. Get country to go Socialist by propaganda and carefully placed operatives.
2. Country goes broke.
3. Take over country. Make big profit from their resources.
“In exchange for modest loans and bailouts over the past decade, Russia now owns significant parts of at least five oil fields in Venezuela, which holds the world’s largest reserves, along with 30 years’ worth of future output from two Caribbean natural-gas fields.”
The big difference between Russia and others that loaned money to Venezuela, Putin will kick their @ss and steal their gas!
Sounds like the Democrats. Remember Hillary took Vlad a reset button.
The Art Of The Deal.
Sounds like good business to me.
How about the US allowing Communist China to control the Panama Canal? Which is worse? The enemy with billions of single men, who enslaves people and kills dissidents openly, or Russia which has been happily trading secretly with the US since pre-Bolshevism.
“We’re currently in a battle with the Russians (among others) for dominance in the international oil and gas market. We’ve only recently gained the upper hand in that arena, but with Russia now owning half of Citgo and holding the banknotes on much of Venezuela’s proven crude oil reserves, that’s going to give them a serious leg up.”
Beg to differ, “We’re...” are not in a battle or gained the upper hand. Maybe US hydrocarbon companies and their share holders are and have. But unlike Russia and Venezuela the US does not own an oil company. So if Russia wants to help drive down oil prices I cannot see the down side.
At least the socialists don’t have it.
These deals are going to end up causing wars.
Is Russia trying to “OPEC” America?
CC
And when Maduro and the Chavistas are overthrown, the new government will cancel all contracts and re-nationalize whatever is owned by the Russian and Chinese supporters of the previous regime
Russia floods countries with propaganda before moving in. The new red diaper doper babies and various other antisemitic clowns lap it up.
Iran Placing Medium-Range Missiles in Venezuela; Can Reach the U.S.
http://www.freerepublic.com/focus/news/2640111/posts
‘Die Welt’: Iran building rocket bases in Venezuela
http://www.freerepublic.com/focus/f-news/2721122/posts
Fears Of Iran Nuclear Weaponizing Lead To Brent Break Out
(Iran’s possession of nuclear weapons sending oil prices high)
http://www.freerepublic.com/focus/f-news/2804266/posts
Let’s see: China taking over Kenya’s port and Russkies running Citgo. 2 s—thole countries. Do they really think the commies are their friends?
Venezuela’s oil is one of the most difficult to refine in the world, thus far less desirable that almost any other source. Only a few refineries (mostly in the US) can actually handle it.
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