In this week’s roundup… Venezuela confirms its decision to leave the World Bank’s International Centre for Settlement of Investment Disputes (ICSID), rebuffing long-term treaty agreements with 24 countries. Hugo Chávez continues to defend his new defense minister, who allegedly has ties to drug traffickers and the Colombian FARC; Venezuelan opposition candidates sign a document foreswearing any “shock” reversals of Chávez’s economic policies should one of them win the presidential elections; the closure of Hovensa oil refinery in the Virgin Islands is expected to seriously hurt the Venezuelan economy; and Chávez delivers his longest speech to date, lasting a staggering nine and a half hours.
Venezuela to leave World Bank-affiliated body, renounces international arbitration, The Washington Post via the Associated Press
Venezuela plans to leave the World Bank’s international arbitration body and try to settle disputes with foreign companies within its own judicial system, Oil Minister Rafael Ramirez said Sunday. Ramirez also announced that Venezuela would seek to renegotiate dozens of international investment-related agreements.
Venezuela and international arbitration: Ick-SID, The Economist
For Hugo Chávez, sovereignty means never having to say you’re sorry. The Venezuelan president, who sees globalisation as an imperialist plot against developing countries, is determined to break free from all forms of international arbitration. His latest bid to de-couple his country from the rest of the world involves the World Bank’s International Centre for the Settlement of Investment Disputes (ICSID), a tribunal which serves as an arbitrator for foreign-investment contracts.
Venezuela Needs as Many as 15 Years to Leave Arbitration Court, Bloomberg
Venezuela will need as many as 15 years to renegotiate bilateral investment treaties before it can leave the World Bank arbitration court, said Prosecutor General Carlos Escarra. Venezuela has treaties with 24 countries that need to be amended or canceled before authorities can pull out of the Washington-based International Centre for Settlement of Investment Disputes, or ICSID, Escarra said yesterday in an interview with Union Radio.
Chávez Defends New Military Chief, TIME
President Hugo Chávez defended his new military chief on Tuesday, saying renewed allegations that he aided drug traffickers and Colombian rebels were part of a smear campaign against the general. Speaking before thousands of soldiers standing in formation at a Caracas military base, Chávez urged the military to defend his defense minister, Gen. Henry Rangel Silva.
Chavez Opponents Pledge No Shock Therapy If They Win Election, Bloomberg
Opponents of Venezuelan President Hugo Chavez won’t apply “shock” adjustments to reverse policies such as currency and price controls if they unseat the self-declared socialist in October’s election, according to two advisers for the opposition alliance. Six candidates competing in an opposition primary next month will sign a 164-page policy platform Jan. 23 committing them to a plan of action should they defeat Chavez.
Virgin Islands refinery shutdown to hit Venezuela hard, The Miami Herald
The announced shutdown of an oil refinery in the Virgin Islands will hit hard the state-run Petróleos de Venezuela, S.A. (PDVSA), a company that loses a major customer for its hard-to-place heavy crude and a major supplier of components for the gasoline consumed in the country, analysts said. The experts added that the closing of the refinery — one of the world’s 10 largest — could also impact the cash flow of the state-owned company, as the complex, where PDVSA has a 50 percent share, is one of the clients that best pays for Venezuelan crude. “It’s a very important customer for Venezuela,” said former state oil company manager Horacio Medina. “It is one of the places where they were sending large amounts [of crude] every month.”
Chavez Gives 9 Hour Speech Ahead of Campaign, Bloomberg
Venezuela’s President Hugo Chavez, who is running for re-election after battling cancer, signed off his longest-ever speech with a message to his opponents: “I’m back.” Chavez, who spoke for more than 9 1/2 hours during his annual address to the National Assembly on Jan. 13, said yesterday that he’ll begin campaigning for a third consecutive term once his opponents choose a single candidate from six aspirants in a primary on Feb. 12. The former tank commander last year reduced his almost- daily TV appearances after having surgery in June to remove a malignant tumor from his pelvic area. The speech on Friday was intended as a message that he’s regained his former energy and will be fit enough to campaign for the Oct. 7 election, said Marcelino Bisbal, director of media studies at the Universidad Catolica Andres Bello in Caracas.