Reasons for Venezuela to shut off oil pipeline to Cuba

1Recently, the Venezuelan government offered to “save the world” by providing oil and gas that is not available today, as a result of the crisis caused by the Russian invasion of Ukraine.. Since 2014, the supply of oil, petrol, diesel and gas produced for internal consumption has not been allowed. Fuel supply and crisis Domestic, transport and largest industry in its history.

Venezuela, Cuba and oil

Although in the last quarter of 2021 About 85,000 barrels were available Despite the local market of 110,000 people a day, exports from Venezuela to Cuba and the partial removal of the civil-military mafia of smugglers, the deduction from domestic consumption continues and rationing continues or worsens.

To mitigate the crisis, over the years PDVSA accepted imported fuel as payment for its crude oil exports. But these exchanges are with its main partner, its US refining subsidiary CitcoInterrupted when Venezuela After curtailing its production in 2017, Citco offered itself Canadian oil.

For its part, The US sanctioned PDVSA in 2019. Since then, America This has also put pressure on PDVSA’s other business partners, such as Spain RepsolItalian I and Indian CredibilityAlthough authorized to ship diesel, petrol is not supplied.

Then the deficit increased Russian oil company Rosneft has suspended its operations in the country in March of that year, after Washington allowed its two business units to deal with it Venezuela.

However, Venezuela continuedAbout 90,000 barrels of crude oil are shipped to Cuba per dayCuba sells part of it, uses the rest for energy production, and then waives it in consideration of the political advisory services, intelligence and medical assistance it provides us.

Although Venezuela It was able to double its oil exports to 487,000 barrels per day (bpd) by June 2022, reducing its supply. Cuba At 9,740 bpd, well below the average of recent months.

Cuba is the fourth destination for Venezuelan oil, but far behind China, which absorbs 80% of the crude.

According to available data, Cuba Venezuela is the fourth place for oil, but far away China, which absorbs 80% of the crude. The following recipients were: The two newcomers to the Caracas market are Spain (13%) and Italy (5%).

Both enter through an agreement with Spanish companies Repsol and Italian Eni America Crude oil and gas must be bought to cover the crisis caused by the sanctions on Russia.

however, Export figures are still far from the target set by the Venezuelan governmentIt wants to sell about 830,000 bpd in the international market and produce at least two million bpd.

One of the reasons for this decrease is the situation at the Cuba refinery complex, which recently caught fire and caused major structural and operational damage.

Cuba is focused on making connections to an energy system that already requires billions of dollars in investments

till date, Cuba It is focused on making connections in an energy system that already requires billions of dollars of investment to completely transform, but it is clear that it cannot continue this policy.Warm clothes » Hiring thermoelectric generating plants from Turkey.

Another reason for declining participation Cuba Figures for crude oil production and exports are still far from the target announced by the Venezuelan government.

The Cuban government is expert at living off others and hopes to recoup investments made with the help of Russia and China.

But let’s not forget that the Cuban government is an expert at relying on others. Russia Y China Specifically. But the necessary solution is not in sight Total collapse of the Cuban power system.

It is not easy for Cuba, because its main friend and generous supplier today is an oil-poor country that has been dragged down by corruption and progressive populism.

So Cuba It is not easy for him, because his main ally and generous supplier today is a poor oil-producing country that has been dragged into an unprecedented economic, socio-humanitarian and political crisis by corruption and progressive populism, which has bankrupted its economy in less than a year. decade and From a system of socialist controls, it was transformed into an illusionary and corrupt capitalism.

The national government will depend on contributions of close to $1.9 billion, and possibly more, from corruption and fuel smuggling networks.

Today, and in the future, national government will depend more and more on contributions close to them $1.9 billion, although there may be more, the corruption network and its operations stem from the smuggling of fuel and other goods and government-facilitated deals. of others 1,800 million for illegal sale of gold, diamonds and gold; 4,919 million produced Drug Trafficking In and around the national territory 825 million for extortion at ports.

Between love and passion

These amounts alone account for the amount of illegal businesses estimated to be between 21% and 25% of the country’s GDP in 2021 at $43.44 billion.

Ultimately, the government will be comfortable selling the oil it doesn’t send to Cuba, but it remains to be seen who is more powerful. Confusion between “love and passion”.