[News] Sandinistas in Venezuela oil deal

Anti-Imperialist News News at freedomarchives.org
Wed Sep 21 08:40:13 EDT 2005


Sandinistas in Venezuela oil deal
Nicaragua's left-wing opposition party has announced an agreement to buy 
Venezuelan oil at preferential rates.

Sandinista leader Daniel Ortega said councils governed by the party would 
be able to buy oil at a 40% discount.

The rise of global oil prices has caused an energy crisis in Nicaragua 
which has led to power rationing.

But the government, which did not take part in the deal, is questioning the 
Sandinistas' access to the proper infrastructure to carry it out.

New company

Nicaragua's main energy supplier, Fenosa, began rationing power for up to 
eight hours a day earlier in September.

Fenosa said it was left with no choice after the Supreme Court barred it 
from raising tariffs to keep up with the price of fuel used to generate 
electricity in Nicaragua.

President Enrique Bolanos - who is locked in a power struggle with the 
Sandinistas - said on Monday that he would ask congress to approve rate 

He also wants congress to allow him to hand over $30m to private energy firms.

Under the deal announced by Mr Ortega, a Venezuelan-controlled company will 
be created in partnership with the municipalities. The company will 
transport, store and deliver fuel.

More than half of Nicaragua's councils are run by Sandinistas and could 
benefit from the cheaper oil.

Venezuela's Ambassador Miguel Gomez said he hoped similar schemes could be 
extended to other Central American countries.

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