Venezuelan flag in front of PDVSA installation. US sanctions prevent the company from establishing regular commercial relations with its partners. Photo: AFP.
PDVSA analysts concluded that the losses caused by the US blockade and “sanctions” against Venezuela have reached an average of 30 million dollars annually since 2014; since that year more than 7 billion dollars remain blocked in 40 international banks.
In Últimas Noticias, Venezuela oil expert Werther Sandoval concluded from industry reports that the accumulated losses, at the end of 2021, amount to 240 billion dollars, which has undoubtedly had an impact on the economy and the development of the country.
Similarly, to the suffering of the population is added “the rapacious dispossession of PDVSA assets, whose material damages include 30 billion dollars in oil assets and the indicated 7 billion dollars blocked and confiscated, among whose destinations is the purchase of medicines and food.”
Next, we systematize other damages to the industry pointed out by Sandoval:
- The “sanctions” prohibit financial operations such as the issue of PDVSA Bonds.
- The losses to the nation are equivalent to almost five times the value of the goods and services produced by the country in 2020.
- They prohibit PDVSA from borrowing, paying suppliers, importing supplies, and even insuring oil tankers.
- The “sanctions” limit the possibility of sufficiency of resources in bolivars and foreign currency for the execution of operational plans, investments and maintenance of PDVSA.
- They prevent access to capital markets for financing and debt restructuring.
- The “sanctions” make it difficult to contract reinsurance internationally, which prevents the corporation from adequately protecting assets and other property under its control and custody.
- The ban on importing diluents for the processing of extra-heavy crude affects the sustained recovery of production.
- Internal Cash Flows: The “sanctions” prohibit dividend payments to any entity owned or controlled by the Venezuelan government (including PDVSA).
- They cause obstacles on the part of international financial entities on the payment orders issued by PDVSA and its subsidiaries to its suppliers and contractors.
Translation: Orinoco Tribune
OT/EF/JRE
