Venezuela opened for possible privatizations

By E.C.V. & ASOCIADOS

The draft version of legislation introduced by Venezuela’s Nicolas Maduro opens the door for bigger private investment in the nation’s economy, potentially undoing decades of state intervention.

The text of the “anti-blockade” law describes the executive as having the power to modify the property, management or administration of public companies and joint ventures, according to a draft seen by Bloomberg.

That could allow for further private or foreign investment in state-oil company Petroleos de Venezuela and the country’s oil sector, which has seen output plummet as a result of falling oil prices, mismanagement, graft and sanctions. Foreign investment in the nation’s oil sector has been capped at 49% since 2006.

“This could open the door for the state to hand over PDVSA’s management and even ownership of refineries to Iran, for example,” said opposition legislator Angel Alvarado, member of the National Assembly’s finance committee.

The draft legislation under consideration is before the so-called Constitutional Convention, the president’s parallel legislative body that’s deemed to be illegitimate by many countries. The draft version is currently being analyzed by the body’s economy commission and could be approved as soon as next week, according to a legislator that asked not to be named as they are not authorized to speak publicly on the matter.

Source: Blooomberg