Posted on 05/25/2002 3:17:16 AM PDT by Cincinatus' Wife
CARACAS - Venezuela is toughening the terms of its generous oil-supply deal with Cuba after the island has fallen repeatedly into arrears on payments, currently owing $142 million, oil industry sources said.
State-owned oil company Petróleos de Venezuela, S.A. (PDVSA) stopped dispatching crude and refined products, including jet fuel, to Cuba around April 12 after the island defaulted on a $63.4 million bill.
The outstanding debt has since increased to $142 million, industry sources said.
Officials from Cupet, the Cuban oil company, visited Caracas earlier this month in an effort to renew the eight monthly cargoes, a spokesman for the Venezuelan Energy and Mines Ministry said.
PDVSA officials agreed to give the Cubans short-term financing of the debt and renew shipments as of June, but imposed more stringent conditions on payment terms, the spokesman and other sources said. Details of the new terms were not available.
''This type of situation is not new,'' said the ministry spokesman, who requested anonymity. ``PDVSA has had these types of problems before with lesser-developed countries and is used to resolving these issues.''
Venezuelan petroleum is crucial to Cuba, accounting for about a third of its consumption, or 53,000 barrels a day.
The South American country has long been an oil supplier to Cuba, but in 2000 President Hugo Chávez struck a controversial bargain with Cuban President Fidel Castro. Venezuela agreed to give the communist nation up to 15 years to pay for a portion of the shipments at 2 percent interest and with a two-year grace period.
The agreement, in which Venezuela agrees to accept letters of credit from the National Bank of Cuba, also allows the island to pay for another part of the supply in 90 days at 2 percent interest.
Additionally, the pact permitted some of the oil to be paid for by barter, principally the services of Cuban medical doctors and sports trainers sent to Venezuela, and the treatment of seriously ill Venezuelans in Cuba.
The barter clause was eliminated last year, with medical services now considered a goodwill donation by the Cuban government.
Castro is both a mentor and close personal friend of Chávez, who once said life in Cuba was ``a sea of happiness.''
The oil deal in particular has raised many hackles among Chávez's opposition, who see it as Chávez placing political affinity ahead of good business practices.
''The terms given to Cuba are more favorable than those given to other countries, such as [those in] Central America,'' said oil consultant Alberto Quiros Corradi. ``On top of that, they don't pay, so it's not in Venezuela's interest.''
During last month's brief 48-hour ouster of Chávez, managers at PDVSA announced that they would immediately suspend the Cuba supply contract. Employees gathered at an assembly cheered and applauded.
But PDVSA President Ali Rodríguez, a former leftist guerrilla, said upon taking the post last month that the Cuban contract would be honored.
Yes, the "firebrand" is a real Castro fan. He is trying to tone it down but I don't buy it. I don't think anyone does.
supposedly about one third of cuban consumption, which seems to be right, as the u.s. d.o.e. site says 162,000 barrels/day in 1999
which is about 5.33 barrels/year per capita based on a population of about 11.1 million in the "sea of happiness"
in very round numbers, the u.s. consumes about 20 million barrels/day, which is about 26.5 barrels/year per capita based on a population of about 275 million
or about 5 times cuban per capita consumption
ain't communism wunnerful?
workers of the world, unite!, but don't do anything that uses too much energy...
And Castro's not Santa, either...
So what are they doing with all those smarts ? Why are't they a center of high tech and cutting edge production ?
Why are they beggaring the world ? Why aren't companies vying to make use of their literate population by investing there? Why oh why ?
One of the liberals dirty little secrets is that, while his beautiful country of Cuba lives in dire poverty, chains, and prostitution, Fidel is one of the world's richest men. He has dozens of mansions, billions in Swiss bank accounts, and complete personal control over the insustry and agriculture of his nation.
To replicate this type of power is Chavez' ultimate dream.
A virtual sea of happiness.
I guess it's the communism! Any form of government that has to confiscate property, torture and lock you up, must not be working.
Hell no! it's not free...
Bumps!
Chavez Faces $2.3 Billion Scandal*** The Central Bank of Venezuela (BCV) said Wednesday that it never received $2.3 billion from the government destined for a rainy day fund, plunging the administration of President Hugo Chávez into a major misappropriation scandal…………Influential afternoon newspaper Tal Cual charged Wednesday that the government had incurred into "a mega corruption" and said Chávez owed the nation an explanation and to reveal the true destiny of the money. "Without any doubt," said Tal Cual," it (the government) used part of the money to cover ordinary government expenditures, but a fair amount was used to finance the expenses and trips to Cuba of the Bolivarian Circles," the government's highly criticized militia.***
Excellent point.
If Chavez is to become the fabulously wealthy "President for Life" dictator he hopes to be, the neighborhood government enforcement/terror groups will be critical.
Cuban Electricity - production: 14.358 billion kWh (1999)
Cuban Electricity - production by source:
fossil fuel: 94.2%
hydro: 0.7%
nuclear: 0%
other: 5.1% (1999) I'm surprised that the Euro-weenies don't chip in and
donate giant windmills to Fidel's "Island Paradise".
Why did you say that? I understand the "liberal lion" ain't too happy with a wind project that may interfere
with his view while sailing. Assuming the windmills are already ordered, you don't think Jimmuh and Teddy will,
nah, never happen.
Or, to put it another way, the per-capita generation in Cuba, based on a population of 11.1 million, is just shy of 1300 kilowatt-hours per person per year. As compared to the US figure of 132,000 kilowatt-hours per person per year. Even if you knew nothing else about the US and Cuba at all, even if you were a Martian or something, that one statistic alone should be enough to tell you that one country is enormously wealthier than the other. So much for the worker's paradise...
(rimshot)
Thank you, thank you, ladies and gentlemen - I'll be here all week...
:^)
probably prisoners cranking generators between beatings
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.