You are in > Archives » Headlines » January 2007
January 2007
January 9th 2007
Venezuela to nationalise key industries
On the eve of the inauguration of his third term as President of Venezuela, Hugo Chavez has announced a series of measures which will move the country away from capitalism and towards socialism.
After swearing-in his new cabinet, Chavez announced that firms in strategic sectors of the economy, such as electricity and telecoms would be nationalised, that the country would take a majority stake in the processing of heavy crude oil from the Orinoco region, and that the country’s central bank would be taken back into state control.
US firms currently dominate the industrial sectors which will be affected by this move. Power to Caracas, Venezuela’s capital, is currently supplied by a firm called EdC, which is owned by the US-based company AES. Ownership of Venezuela’s largest telecommunications firm, CanTV, is currently largely held by the US company Verizon Communications; the Spanish company Telefonica also has a stake in the firm.
The main firms currently involved in the Orinoco heavy crude projects are the US-owned ConocoPhillips, followed by Total of France, Chevron and Exxon Mobil of the USA.
The Financial Times quoted Orlando Ochoa, an independent financial consultant based in Caracas:
“If there was any doubt about Chávez’s economic orientation, he’s made it very clear on the eve of his inauguration, and it’s that the state must assume full and direct control of key sectors of the economy.”