Wednesday, May 03, 2006

Chavez to visit Bolivia Later Today (Update 4)

Reuters and Stratfor report that Chavez has announced a surprise visit to Bolivia in order to discuss Evo's nationalization decree. He will bring along a team of oil technicians and will (consider whether to) give Bolivia aid.

This is the last step for Venezuelan consolidation of power in Bolivia. Is it me, or Chavez parading in La Paz is somehow reminiscent of that black-and-white film showing Hitler strolling in Paris?

The visit is scheduled for today (Wednesday) and Chavez is expected to spend the night in La Paz. Tomorrow, the puppeteer and his puppet will head together for the summit in Brazil.

More details as they become available.

Update 1: The purpose of Chavez's visit to Bolivia is, according to La Razon, "the creation of a joint strategy fot the defense of the nationalization of hydrocarbons". This statement alone should show Chavez's hand in the matter and the lack of "sovereignity", which is one of Evo's main selling points. They are expected to confirm Bolivia's position on the issue on the summit to be held in Brazil.

Update 2: Meanwhile, PDVSA and YPFB have sealed an alliance. This alliance will be signed in the Chapare region (the coca-producing region in Cochabamba) and will give PDVSA exploration rights in Bolivia. It seems that nationalization is nothing but a way of transferring rights (and control) to Venezuela. YPFB will become YPFV. The coca producers from the Chapare region have offered their help in order to secure the gas/oil installations taken by the military on Monday.

Update 3: Lula has been quoted as saying that Bolivia's sovereignity cannot trample over Brazil's. Petrobras, on the other hand, does not accept the new terms and has announced the halt of investments and that they will bring Bolivia to trial.

Update 4: Evo will appoint the boards of all nationalized companies by decree (here). So, expect corruption to reach the sky.

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Blogger Guccio said...

Well, the visit is not a surprise to me, as it is not that Venezolanos will control YPFB.

8:38 PM  
Anonymous blogsurfer said...

What is YPFB? Why would turn to YPFV?

1:11 PM  
Blogger Alvaro Ruiz-Navajas said...

Hi Guccio. You're right, no surprises there.

YPFB is Bolivia's oil company, and it stands for Yacimientos Petroliferos Fiscales Bolivianos.

YPFV would stand for Yacimientos Petroliferos Fiscales Venezolanos.

2:28 PM  
Blogger Frank IBC said...

I'm sure that when many American liberals see the headlines, they assume that control of hydrocarbon facilities in Bolivia have been transfer from American control to Bolivian control. I think many American liberals are under the impression that "Big Oil" is a exclusively American phenomenon.

But as you point out, the reality is that it is being transferred from Brazilian control to Venezuelan control. Interesting.

3:01 PM  
Blogger David Wilson said...

no, not Hitler i don't think, i look at pictures of Evo & Chávez in various combinations with Lula, Castro, Kirchner, Condoleezza, and so forth and he comes off looking (to me) like a youngster trying to please his older brother

ai ai! i guess the best that can be said is that he is in an excellent situation to learn something, maybe he will

3:30 AM  

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