Wednesday, November 8, 2017

Petrodollar 4-D chess: Russia solidifies Venezuela in their camp by restructuring their debt obligations

With Venezuela fully engaged in dumping the Petrodollar from their oil industry, on Nov. 8 Russia solidified Caracas's move into Moscow's camp by restructuring $2.8 billion in debt obligations that were owed to them by the Maduro government.

Russia’s Finance Ministry said on Wednesday that Venezuela's $2.8 billion debt to Moscow will be restructured to meet a previously agreed extension of payment terms. 
“We have an agreement on (debt) restructuring with Venezuela,”Finance Minister Anton Siluanov told reporters, adding the process is nearing its final phase. Earlier he said the sides were discussing acceptable solutions with a possible two-stage postponement.
“The first part includes pretty favorable terms with a small sum due for repayment so that it's manageable for our Venezuelan colleagues,” Siluanov said. 
Russia is one of the critical lenders to the South American country, the total foreign debt of which exceeds $100 billion. According to Venezuela's President Nicolas Maduro, almost three-quarters of the country’s bondholders are from the US and Canada. – Russia Today
This move of course leaves U.S. and European debts to continue on the path towards default as Venezuela sees fit, and provides Maduro increased incentive to accede to Moscow's goal of divesting the world from dollar hegemony, especially when it comes to the global oil industry.

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