Vainglorious Sanction Victimizes Venezuela Oil

Oil fuels logic for the Empire. Now, the Empire finds that imposition of sanction is needed against Venezuela’s oil company. The logic is: the Bolivarian country has entered into an oil deal with Iran, the theocracy run state, where a group of guardians determine democracy’s limit.

James Steinberg, the US Deputy Secretary of State, announced: Secretary of State Hillary “Clinton has decided to impose sanctions on seven foreign entities under the Iran and Libya Sanctions Act of 1996.” Venezuela’s state –run Petroleos de Venezuela SA (PDVSA), the world’s most revolutionary oil company is one of those seven.

The US claims: PDVSA has delivered at least two cargoes of reformate, a gasoline blending component, to Iran between Dec. 2010 and March 2011.

President Hugo Chavez’s government condemned the sanctions, which will be effective for two years. “Sanctions against the Fatherland of Bolivia? Imposed by the Gringo imperialist? Well, welcome Mr. Obama, don’t forget we are the children of Bolivar!” Chavez said via his Twitter account. The Venezuelan government criticized the US step calling the sanctions an “imperialist attack” against Venezuela. It condemned the US decision as “it represents a hostile action, is in breach of international law and violates the principles of the Charter of the United Nations.”

Rafael Ramirez, the Venezuelan oil minister informed that PDVSA’s shipments of heavy crude to its US subsidiaries will continue. However, shipments to nonaffiliated private oil companies are not guaranteed. He rejected the imperialist interventionism. “Imperialism is not to decide who will be Venezuela’s friends. Their imperial decisions will neither hit nor stop us. PDVSA is ready to fight for sovereignty,” he added. According to Ramirez, the OPEC is under attack by the US. Venezuela’s industry has the capability to face and overcome this sanction, said Venezuelan Foreign Minister Nicolas Maduro. He assumes that mostly US business using Venezuelan oil will be affected. In a press conference he said: “We are not afraid of these sanctions, nor are we going to debate the reasons that the North American government may have, but Venezuela is sovereign in making its decisions.”

An official document rejecting the sanctions was drafted and signed by pro-Chavez Venezuelan ministers, but opposition politicians refused to sign it. “This shows once again that these politicians are representatives of North American imperialism,” said Ramirez.

In a statement the Venezuelan government said that it would assess the situation to determine the ways the sanctions could affect the operational capacity of the country’s oil industry. Shipments of crude oil to PDVSA’s US subsidiaries are ensured. But supply to clients other than Citgo, the subsidiary, is under discussion. Average shipments of Venezuelan oil amounted to 987,000 bpd in 2010. Venezuela ships about 45% of its crude to the US that makes up about 10% of US oil imports.

Venezuela National Assembly has approved by absolute majority an agreement to refuse the sanctions. The Assembly considers the sanction as “an unprecedented hostility act in US-Venezuela relations.” The Assembly has urged the Venezuelan government to take “reciprocal measures, in proportion to retaliation against the United States,” within the framework of Venezuelan regulations and international law. The Venezuelan Oil Chamber condemned the sanctions. The Venezuelan-American Chamber of Commerce and Industry (Venamcham) expressed its concern over any sanction that may damage trade between the two countries.

Oil industry workers rallied in front of oil facilities in the states of Falcón, Zulia, Monagas, Anzoátegui, Carabobo, and other states and in the Capital. They took part in demonstrations, take-overs of oil refineries, cultural activities and convoked a popular assembly in order to manifest their support for the government’s foreign policy. Women and peasant organizations, alternative media, and community councils also organized marches in Caracas in response to the sanctions. Many Venezuelans consider that the US is trying to “organize another right-wing offensive against the processes and countries which are currently liberating their own people”.

The sanction, largely symbolic, will also affect six other smaller companies in the UAE, Israel and Singapore.

The sanctions will not affect PDVSA’s capacity to sell crude oil to the US. It will prohibit PDVSA from competing for US government contracts or getting US export financing, any transactions in foreign currency from PDVSA that are subject to the jurisdiction of the US, and any transfers or credit or payments between financial institutions where PDVSA is involved. The sanctions confirm the US effort to escalate its Iran-initiative. Moreover, it expresses energy imperialism’s enhanced efforts to destabilize and interfere in energy-rich and strategically located countries.

But because of sociopolitical perspective and the ongoing economic-political transformation Venezuela is neither Libya nor Syria. The organizational innovations and initiatives, despite weaknesses, by the people and the country’s geopolitical moves make Venezuela a difficult piece to swallow.

The sanction is an effort by the Empire to hurt Venezuela economically, and a threat. “The U.S. needs to move quickly to cut off Chavez’s source of revenue, and bring an end to both his influence in Latin America and his dangerous relationship with the terrorist-supporting Iranian regime before it’s too late,” said Connie Mack, US Congressman and Chairman of the Subcommittee on the Western Hemisphere.

In the energy front, Venezuela has diversified its sources for technology supplies. Financially, it does not depend on the US or on any of its companies. China is accelerating its steps to get supply to its increasing oil thirst with Latin American oil. This carries all the possibilities of costing the US. According to the Energy Tribune, the Chinese secured deals throughout Latin America in 2010 worth at least $65 billion in stakes of projects that could eventually produce over 1.3 mbd crude oil. Most of China’s Latin American oil investments are in Venezuela. China is planning an oil refinery in Venezuela and has rented a 5 mb storage facility in the Caribbean. A major obstacle for China is to economically ship Venezuelan oil to its own land. To overcome the obstacle, China plans to construct a railway, dubbed as land-based Panama Canal, across Colombia, from the Atlantic coast to the port on the Pacific coast, which will allow China to ship oil and coal from eastern Colombia and Venezuela to Pacific ports. From these ports the energy material can be shipped to China. This project, after completion, will significantly transform energy politics in Latin America. During his 2004 China visit, Chavez told that his country was ready to help China establish its own strategic petroleum reserve.

Chavez played the central role in inking the agreement that will allow Manuel Zelaya, the president of Honduras overthrown in a coup in 2009, to return home. Zelaya and Lobo, the current president of Honduras, signed the agreement. Chavez, Santos, and Lobo met in Colombia to discuss the agreement. Before to that discussion, Chavez discussed with Zelaya in Venezuela. It is a major achievement by Chavez in Latin America’s struggle for democracy, which is opposed by its powerful northern neighbor.

In home, significant initiatives are being taken by the Venezuelan people. In late-May, workers’ council delegates from most of Venezuela’s 23 states met in Puerto Ordaz with the aim of advancing the organization of the management model of Socialist Workers’ Councils, analyze progress, strengths and weaknesses of worker control in Venezuela, and to “strengthen the struggle for productive independence through worker control”. The Organic Law of Popular Power recognizes Socialist Workers’ Councils providing these councils the legal basis. Slogans of the conference included “Neither capitalists nor bureaucrats, all power to the workers”, “Without workers’ control there’s no revolution”. In late-March, thousands of Venezuelan workers took to the streets of Caracas to demand immediate improvements in workplace democracy and the final passage of a radical new labor law. The marchers extended “critical support” to the government of Chávez and pushed for consolidation of Chávez proposed “21st century socialism” on job sites nationwide. The rally condemned the state bureaucracy, widely considered as a major roadblock to the advance of the revolution in general.

These developments strengthen Venezuela’s position in home and on international arena. Vested interests and their masters make all out effort to hinder Venezuela’s journey to peace, prosperity and dignity. Energy imperialism increases this danger.

Spain Spins

The slogans and the signs say the Spain-reality:

“ Liberty , Equality and Corruption. Do we know who our politicians are working for? It's called democracy and it's not it!”

“Real Democracy Now”

“We have the right to dream, and for it to become true”

“Be Indignant”

“For A True Democracy”

“No Corrupt Politicians, Businessmen, Bankers”

“Take the Streets”

“Less Policing, More Education”

“They Call It Democracy, But It Isn't”

Slogans cited above reveal a reality, a reality of indignation and aspiration, and this has put neoliberalism on the dock in Spain . This is a reality neoliberalism is facing in countries. In Spain , the neoliberalism is being implemented under the stewardship of the socialists.

Tens of thousands of protesters, young, old, pensioners, university students, civil servants, immigrants, campaigners for local languages, filled the main squares of about 50 cities including Madrid , Barcelona , Seville , Bilbao , Zaragoza , Valencia for about a week. They are los indignados , the indignant.

Protesters rallied against the country's economic crisis, against its superhigh jobless rate. In a wave of outrage over economic stagnation and government austerity marking a shift after years of patience they took to the streets. They protested against politicians, bankers and authorities' handling of the economic crisis. They defied a ban, the Supreme Court upheld, on political protests, but police was not active to enforce it. The apparent inaction was a political move by the authority. The government feared that an enforcement of the ban order could provoke clashes that in turn could hurt the Socialists. The protest took a political character.

The week-long protest “marks a shift in Spain where up to now people have scarcely protested.” This is the strongest outburst of spontaneous protests since Spain plunged into recession that followed the collapse of the 2008 property bubble. The protesters, known as M-15 as the protests began on May 15, lamented the economic crisis Spain is experiencing. They protested against the indifference of mainstream politicians, who ran Sunday's elections in 13 of the 17 regions and its more than 8,000 municipalities. The ruling Socialist Party is going to digest a big loss in the elections, a political price for following neoliberalism.

The protesters expressed determination to stand against the crisis wrought by capital creating bubbles with illusions. They expressed solidarity by raising arms in an assembly even after midnight in the Puerta del Sol square in Madrid . A protester put a sticker on his boot denouncing the existing democracy. The youth hang banner with the sign “Indignant” on the top of a building in Madrid . They painted caricatures of the main political figures. More caricature is in the wings.

These tell the strong sentiment of the citizens against job insecurity and government spending cuts. Their demands include jobs, better living standards, a fairer system of democracy and changes to the austerity plans. Actually, the demand is for state's enhanced role and responsibility in providing education, health and employment. The educated unemployed are demanding their rightful role in society and production. They are also, according to the BBC, calling for an end to domination of the political system by the two main parties. The demonstrations turned political.

A news agency report said: “ With tents, mattresses, a kitchen, a workshop and even a pharmacy, a protest camp in Madrid has grown into a real ‘urban village' for thousands of young people. Under blue plastic tarpaulins, demonstrators have gathered in the landmark Puerta del Sol square in the centre of the Spanish capital. Many of them have spent several days and nights there, to decry politicians who left Spain with a 21.3% unemployment rate.” There were tents with food, tents for political debates, even a tent for childcare. These were not Don Quixotic exercises.

The Spanish unemployment rate, highest in the eurozone, was in the highest level in the first quarter of the year in fourteen years. A government estimate said on April 21, 2011 that about five million persons were out of work. It is unprecedented. A gift of neoliberalism! The youth unemployment rate is 40%. Some sources cite it as 45%. In areas, it has jumped to 50%. The youth are angry; they are qualified, but there is no work. In terms of employment, it is a Tunisia-situation.

Spaniards' demonstrations crossed borders. News agency reports said: Expatriate Spaniards organized demonstration in London on May 18, 2011. The movement was coordinated through social media and Twitter. Now, it seems clear that it is not only foreign powers that use social media to foment discontent in countries they like to intervene. Protesting people also use it.

Prior to the present demonstration, on April 17, demonstrators made a human barricade in front of police. Their t-shirts bore the sign: “We still got no home”. Their posters said: “no house, no job, no pension”. At that time there were flats for sale in Madrid . But that is beyond the reach of the unemployed. The demonstration was followed by clash with police, injury and arrest of demonstrators.

In the movement, there is no flag or affiliation to any party. The protest, as it appears from the demands and slogans, are also against the unfair political situation that Spain 's ruling class has built up and nourishes. The demonstrators were “asking for a change in the political system.” Some of the protestors wrote to BBC: “We have no option but to vote for the two biggest parties in Spain , who are more or less the same. They are unable to solve any problem, it is just a nest of corruption. We are tired. In short, we want a working democracy. We want a change.” They view the political system that exists as unfair. So, they protest “against the political situation that allows more than 100 people who are accused of corruption across the country to stand in the next elections.” The electoral law in Spain has also turned controversial. It is alleged that the vote computing system benefits the big political parties while leaves the smaller ones without any possibility of achieving any success.

A number of protesters consider their movement as “anti-big political parties, both the one in power and the main ones in opposition. It's an anti-capitalism, anti-market ruled society, anti-banks, anti-political corruption, anti-failed democracy, anti-degraded democracy and pro-real democracy protest.” “The economy and unemployment are key to the protest because that binds all of us together,” said Jon Aguirre Such, a spokesman for the Real Democracy Now, which is one of the organizers of the movement.

The movement took serious political character as the demonstrating youth called on people not to vote on Sunday for the two main parties, the Socialists and the centre-right opposition Popular Party. The rich-poor question has also been raised.

Spain has “built more homes than England , France and Germany combined, of which too many now stand empty. Much of the financing for these superfluous homes was done through still seemingly healthy large Spanish banks like Santander and BBVA. … Santander is connected to the entire global financial system.”

The Spanish movement will not announce neoliberalism's last journey and will not herald emergence of a new politics. But it will widen and deepen political lessons, help emergence of new politics.