I think Chavez might have been giving Castro oil under price in return for "expertise", such as running his street thugs et al.
Interesting development...
Yes, Castro was getting very favorable prices, and he is about $90 - $100 million behind in payments for that oil. I have read some reports that say that Castro is turning around and selling the oil at a nice profit, in which case Chavez was giving oil to Castro so that Castro could rake in some US dollars.
Venezuela's Power Shift Condemned*** Chavez's ouster threw into doubt the budding trade relationship between the two countries. Venezuela is Cuba's No. 1 trade partner. Venezuela had been exporting 53,000 barrels of oil to Cuba daily at preferential terms. CNN's Spanish language network showed Edgar Paredes of Venezuela's oil company saying on Friday, "We aren't going to send a single barrel more to Cuba."****
EX-president of Venezuelan state oil company accuses government of eroding morale ***Other bones of contention were the central government's demand that the company hand over $4.4 billion in dividends last year, forcing PDVSA to borrow $500 million to pay the bill; and the oil sales to Cuba, whose leader, Fidel Castro, is Chavez's longtime mentor. · Chavez has insisted that oil sales continue to Cuba, despite an unpaid $97 million bill for past sales. ***
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This will put some pressure on Castro. Who will foot the bill for Castro's oil now - Saddam?
I wonder, would we set up a blockade? After all, this would be one terrorist helping another terrorist 90 miles from our shore.