Exxon Venezuelan asset freeze new Blow to President Chavez

Exxon Venezuelan asset freeze new Blow to President Chavez

www.reuters.com

CARACAS (Reuters) - Exxon Mobil's move to freeze billions of dollars of Venezuelan oil assets around the globe adds new complications to President Hugo Chavez's crusade toward socialism, which is already facing growing obstacles.

Fresh off a 2007 nationalization drive that led to a takeover of a large Exxon oil project in Venezuela, the leftist leader is struggling with the fallout over a December poll defeat, growing economic problems and discontent among supporters.

Chavez faces a potentially huge legal battle with one of the world's largest companies after Exxon's gambit, which freezes some of Venezuela's cash and blocks it from selling billions of dollars worth of assets.

But paying a settlement to the Texas energy giant could mean sacrificing millions of dollars needed for the social programs and suffering a humiliating defeat to a transnational company the anti-U.S. leader has described as "imperialist."

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Well, this should further Chavez' drive to split away from the International Banking systems to create his own Bank. No suprise that our courts would cater to the major corporations, since our entire government is a puppet to the oil industry.


Continued:

Exxon (XOM.N: Quote, Profile, Research) court filings revealed on Thursday show the company won rulings preventing Venezuelan state oil company PDVSA from selling assets such as refineries while also preventing Venezuela from withdrawing more than $300 million in cash from a U.S. bank account.

It was unclear exactly what the impact would be on the day-to-day operations of PDVSA, which critics say is weakened by government's demands it work on social projects, road repairs and food imports.


www.reuters.com
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I wasn't aware that the oil barons control world banks also, I always see the world banks as a totally different elite of corrupted families hugging world assets.

I guess corporate power no only control our nation but also the entire world.

Add this story the the internet cable story and you have a darn good reason to be watch the stock markets. Saturday or sunday.. this weekend will change the world. Mark John Titors words.

I have to say I am glad some institution, any institution, has stood up to this man...he's smoke and mirrors, and his constitiuency is starting to figure that out.

He has no right to nationalize industries that have been built with other investors money, not without paying a fair price first...Seems Exxon-Mobile has just beat him to the punch.

As to his grand ideals of Socialism, the 20th century proved time and time again, Communism disguised as Socialism does not work...the state cannot indefiintely pay for everything the public needs. It ill eventually go broke, the article even makes mention of the difficulties in supply of basic necessities...

"He is now facing growing criticism over nagging shortages of basic groceries like milk and chicken."

"The leftist government is also seeing a growing cash flow crunch at PDVSA, which finances the social programs that keep Chavez popular among the nation's majority poor."

"A new obligation to pay billions of dollars in compensation to Exxon would put further strain on the finances of the company (PDVSA), which saw its debt rise by $13 billion in 2007 to reach $16 billion -- largely driven by the nationalization crusade."

Healthy economies don't attempt to keep the money all at home, Healthy, dynamic economies send their dollars, pesos, rubles out to perform work and return investments...maybe he should retake economics 101.

reply to post by deadbang


Yep, Even his ex-wife who is the mother of his children has taken up political opposition to Hugo. You know it's bad when your baby mama drama takes a political form.

Hmm, seems like Venezuela says it still has access and function of its funds. I wonder who's actually telling the truth? Personally, I have no problem with ANYBODY standing up to these OPEC crooks. They are holding the world financially hostage with their endless greed.


Venezuela denies oil asset freeze

Venezuela's state-run oil firm has denied that US oil giant Exxon Mobil had won a court order to freeze up to $12bn (£6bn) of its assets.
PDVSA said that while it accepted that $300m in cash had been frozen, this was only a "transitory measure".

Exxon has been fighting for monetary compensation since Venezuelan president Hugo Chavez siezed its stake in heavy oil projects in the country last June.

Arbitration between the two firms is due later the year.

Oil Minister Rafael Ramirez accused Exxon of "judicial terrorism" but said the court action "don't have any direct affect over our operations, over our assets".

Full story:

news.bbc.co.uk...