August 28, 2009
Embassy clears air on PetroCaribe

The Embassy of the Bolivarian Republic of Venezuela has moved to clear the air on statements which have been circulating recently in relation to changes to the PetroCaribe agreement.{{more}}

In a release dated August 19th, the Embassy said any financing scheme that has been considered or may be considered in the future “will be for the benefit of the member countries in accordance with the principles of solidarity and complementarity that govern the doctrinal basis of this multilateral initiative.”

The release said, “In this sense, the Executive Secretariat of PetroCaribe would like to clarify that during the VI Summit that took place in June 12 of this year in Saint Kitts and Nevis, the Heads of State and Government analyzed the current schemes with the aim of improving them, taking into account the realities both of the energy market and the economies of the member countries, in search of options that would maximize their benefits.

“These options have not considered the modification of the terms of payment schedules, nor the increase of the percentage of the bill to be paid in cash. The current proposal that controls the commercial exchange of oil and its products in the midst of PetroCaribe is structured in terms of the oil prices.”

“The options in study look into separating the cash payment obligations from the oil prices through the establishment of a single rate that eliminates the exposure of such payments to the volatility of the prices, and reducing the percentage of the amount to be paid in cash under what is contemplated in the present agreement at the current prices,” the release said.

Moreover, the Executive Secretariat of PetroCaribe would like to reiterate that PETROCARIBE is an “effective union and cooperation platform that operates based on the principles of consensus in the decision-making process and contributes to the defense of our energy resources, promoting the development of our peoples in the scenario of a global economic crisis.”