Venezuelan president Hugo Chavez urges Russia to increase its investment in his country as Venezuelan government has pushed western investors out from the state and those who are providing their services in Venezuela they are under immense pressure to co-ordinate with newly formatted law.
Chavez led government has put the country on socialistic stance as the country nationalizes its oil reserve and its national bank. Venezuela has taken majority stakes from the foreign oil drillers and empowered state led Petroleos de Venezuela, S.A. with majority holdings.
Four major western oil drillers accepted Venezuelan suppressive norms, whereas Exxon Mobil and ConocoPhillips firmly rejected the government proposed deal and decided to leave rich Orinoco Belt.
New regulations squeezes American as well as European investors to invest in the country and new investors are abandoning their plan to provide services in Venezuela. Venezuela, which is folding arms against America, criticizes U.S. for its dominating laws and leveling their companies as “vampires”.
After restricting western oil drillers, Venezuela is in dearth of investors, so it’s seeking Russian help to explore country’s rich oil deposit.
While touring Russia, Chavez interacted with the Russian business leaders to develop “road map” that would bolster and diversify Russian-Venezuelan business ties - especially in the energy sector, including construction of a natural gas pipeline and oil refineries.
Chavez said,
We are very satisfied with the presence of Russian companies in our oil industry, and will do our best to develop this cooperation further
Chavez disclosed, with Russia’s help Venezuela will build four massive oil refineries and will make headway for other 13 pending projects. President also invited Russian companies to invest in a 5,000-mile, or 8,000 kilometer, natural gas pipeline to Argentina, retrofitting Venezuela’s dilapidated seaports, and developing its gold mining and chemical industries.
It’s notable that Chavez has pulled the country out of the international institutions like World Bank and IMF but many economists have warned that his steps can jeopardize country’s economy. Initially it was looking like that, but after this development socialist government is observing on the right path to lead the country.
Chavez is on week-long EurAsian tour. During this tour Chavez will try to win favor from European and Asian nations to invest in Venezuela and enhance bilateral trade with Venezuela. Right now Chavez is in diplomatically isolated Belarus and after it, it’s expected that the leader will fly back to Russia to win the heart of Kremlin leader.
