PDVSA tightening relationship to Russia

The head of the Venezuelan state oil company PDVSA, Asdrubal Chavez, and the Venezuelan Vice President and Economy Minister Delcy Rodriguez are visiting Russia today to "deepen strategic alliances," Reuters reported, citing a statement from the Venezuelan Ministry of Information.

The Russian daily Interfax reported that the Venezuelan delegation will meet with Russian entrepreneurs during their visit. Along with China, Russia is one of the very few allies that the government in Caracas still has. State-run energy giant Rosneft had a joint venture with PDVSA for years before it was forced to leave the country after the United States imposed Venezuelan sanctions on two of its subsidiaries. Yet Russia has not left Venezuela. Shortly after Rosneft announced its withdrawal, Moscow formed a new state-owned company called Roszarubezhneft, which received the Venezuelan assets from Rosneft.

According to Reuters, Venezuela is trying to secure new oil deals with its ally under a new law recently passed by the National Assembly. The law, known as the "Anti-Blockade Constitutional Law on National Development and Guaranteeing Human Rights," was first announced by President Nicolas Maduro and then passed by the National Assembly, where the government has full control. The law aims to counter the impact of US sanctions on the Venezuelan economy by providing new opportunities for foreign investors to participate in this economy, as well as giving the government more powers.

According to critics, the new law would threaten Venezuela's sovereignty by inviting more private capital and opening up opportunities for privatization in strategic economic sectors. Still, the government seems hungry for foreign investment, and Rodriguez said the new law will protect that investment. During a press conference following the passage of the law, the economy minister said the government was about to unveil "a basket of projects" to potential investors in sectors such as oil and gas, mining, agriculture and tourism. "The first thing this law did was make any form of unilateral, restrictive or punitive coercion against Venezuela illegal. We do not recognize them, they do not exist on our territory," Rodriguez said.