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As chaos envelops Venezuela, Caracas spends millions on lobbyists in Washington

C1

@alextdaugherty

Venezuela’s currency is essentially worthless. Its people are starving. Rampant inflation has rendered the bolívar less useful than toilet paper.

And since Donald Trump’s election, the Venezuelan government has spent at least $1.3 million on Washington lobbyists through its subsidiary Citgo, a Houston-based oil company.

Three Washington-based firms currently represent Venezuela in Washington, pushing Capitol Hill, the White House and Cabinet agencies on issues like “fuel refining” and the “potential impact of U.S. energy policies on CITGO’s operation impacting U.S. consumers,” according to Senate lobbying records.

Caracas sees its investment in lobbyists as a way to fight possible sweeping sanctions targeting Venezuelan oil. Pushed by lawmakers like Florida Sen. Marco Rubio, the White House said last week “all options are on the table” and promised “strong and swift economic actions” ahead of a vote on July 30 that could alter the country’s constitution in favor of President Nicolás Maduro.

“The costs for representation is a drop in the bucket when compared to the potential economic loss” of oil sanctions, said C.J. Gimenez, the son of Miami-Dade mayor Carlos Gimenez and a lobbyist who left Avenue Strategies, a firm started by Donald Trump’s former campaign aides, after the firm decided to pick up Citgo as a client. 

U.S. sanctions on Venezuela’s oil market could have major financial implications for the Maduro regime and for average Venezuelans. Although Venezuelan crude makes up a small fraction — about eight percent in 2016 — of all U.S. oil imports, the U.S. buys nearly half of Venezuela’s oil, and oil revenues account for 95 percent of Venezuela’s export earnings, according to OPEC.

Gimenez said Venezuela’s greatest asset is its oil and that Maduro “uses it to fund his continued existence.”

In order to shore up the Maduro regime’s future in the face of intense pressure, Washington-based lobbying shops, Avenue Strategies, Cornerstone Government Affairs and VantageKnight. All are well connected in the nation’s capital, spending millions on behalf of corporate titans like Google and Citigroup and staffed with former congressional aides who know Capitol Hill.

VantageKnight, a firm started by Democratic strategist and lawyer Manuel Ortiz, spent $540,000 on behalf of Citgo to lobby on the “potential impact of U.S. energy & foreign policy restrictions on CITGO Petroleum Corporation's operations and valuation of assets” and “sanctions related issues” in 2017.

Neither Citgo nor Ortiz responded to requests for comment. An operator at a Houston office for Venezuela’s state-owned oil company, PDVSA, which owns Citgo, hung up when contacted by a reporter.

Citgo is feeling the heat in Washington, where lawmakers have questioned PDVSAs’ pledge of 49.9 percent of its shares in Citgo as collateral for a $1.5 billion loan from the Russian government-owned oil giant Rosneft. That could leave Moscow with indirect control over Citgo’s U.S. energy assets, including three oil refineries, nine pipelines and dozens of petroleum platforms.

Read more here.

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