Russia offers a plan for the financial recovery of the Venezuelan economy
Over the past few years, the financial and social crises in Venezuela have reached enormous proportions. State debts are growing in proportion to price increases, forcing some residents to take to the streets, and others to leave the country.
The International Organization for Migration reports that more than 3 million Venezuelans have already left the state.
Russia offered its assistance in the financial recovery of the Venezuelan economy. This was stated by the Deputy Minister of Finance of the Russian Federation Sergey Storchak through the Russian media.
What problems did Venezuela face?
In 2018, prices in the Republic increased by 1,700,000%. According to international observers, residents literally starve.
The volume of oil production – the main source of filling the country’s budget – fell from 3.5 million barrels per day to 1.2.
The first term of President Nicolas Maduro was remembered by the catastrophic fall of the Venezuelan economy – its volume was reduced by 50%.
Since 2017, street protests and other insurrections have not stopped here. They reached the peak in early 2019, when Maduro was inaugurated for the second term. These and past problems of the country have forced other states to break off diplomatic relations with it. Paraguay has already stated about that and Peru officials have withdrawn their temporary attorney in Venezuela. Argentina, Brazil, Colombia and the United States do not recognize President Maduro.
It is not excluded that a military coup is being prepared in the country, the aim of which is to remove the current head of state. Chairman of the local National Assembly, Juan Guaydo, calls on the military not to obey Nicolas Maduro.
What is the financial recovery plan proposed by the Russian Federation?
At the end of January 2019, it became known that Russia, which supports President Maduro and does not recognize the parallel government of Venezuela, extended a helping hand to the country. According to Sergei Storchak, the Republic’s debt to the Russian Federation has been restructured. Now it pays a new schedule.
In addition, the deputy head of the Ministry of Finance said that the state sent Venezuela an informal proposal for the financial recovery of the economy. His unofficial status suggests that the plan proposed by Russia is still studied by the Venezuelan authorities. If it is approved, then after consultations the preparation of a specific project agreed by the partners will begin.
