Venezuela: Russia Is Gearing Up for a Conflict with the United States in the Caribbean – opinion

With Moscow propping up Maduro, evading oil sanctions, and moving its troops around the coast, Washington needs to rethink its own strategies.

Ryan C. Berg | Foreign Policy 

New conflicts in the rest of the world may be looming large, but one in the United States’ own backyard is about to get more dangerous. Despite U.S.-led sanctions on Venezuela’s state-owned oil company, Petróleos de Venezuela (PDVSA), oil from the country is still flowing onto world markets. A central facilitator of the exports is Rosneft, Russia’s state-owned oil company, which has been accepting Venezuelan crude as a form of loan repayment. In this way, Russian President Vladimir Putin is playing a leading role in keeping Venezuelan dictator Nicolás Maduro afloat. As long as he does, current U.S. sanctions policy will do little to force a change in Venezuela, which is why Washington needs to rethink its strategy for dislodging the Venezuelan leader — and soon.         

Whereas Rosneft handled 40 percent of PDVSA’s oil exports in July, by August, it was handling 66 percent. As PDVSA’s list of clients has shrunk, Rosneft has quickly surpassed all other companies to become the top trader of Venezuelan oil. Recently, PDVSA even established an office in Moscow to facilitate payments to its Russian client, which has helped reduce its outstanding debt to Rosneft to $1.1 billion. At this pace, outstanding loans to Rosneft could be repaid in full sometime around the end of 2019 or in early 2020. 

Once that happens, Putin’s stated excuse for continued engagement with Venezuela will be moot, but this won’t bring about the grand geopolitical shift in Venezuela that it otherwise could. That is because, for now, supporting Maduro is a low-cost strategy that allows Putin to burnish his image as a defender of embattled regimes everywhere. Russia’s presence in Venezuela — its most significant in the Western Hemisphere since the Cuban missile crisis – will continue long after the excuse of collecting on Venezuela’s debts has run its course.

Indeed, recent moves indicate that Putin is eyeing even deeper intervention in Venezuela, both military and financial. An August meeting of Russian and Venezuelan defense ministers led to an agreement that the two countries’ warships could visit each other’s ports, possibly in preparation for future collaboration on territorial defense. No doubt, the Russians are mindful of reports that U.S. President Donald Trump is obsessed with the idea of a naval blockade against Venezuela. Combined with Russia’s existing naval arrangement with Nicaragua — through which it provides training and equipment in exchange for major port access and permission to operate a global satellite system — the deployment of warships and submarines from Venezuelan ports may aim to deny access to all U.S. naval operations to interdict vessels in the southern Caribbean. In fact, the Cubans have already requested that Russia escort tankers carrying Venezuela’s shipments of free oil to the resource-strapped island.

Meanwhile, Russian troops have embedded themselves in garrisons around Venezuela by the hundreds according to Craig Faller, the head of U.S. Southern Command. With Russia’s intervention in Ukraine as a model, Russian soldiers have started donning the fatigues of the Venezuelan Army in an effort to blend in. Russia is also making a concerted effort to get its long-delayed AK-47 plant up and running in the city of Maracay, as well as upgrade the missile defense system it sold to Venezuela, which continues a long-term and worrisome buildup of Russian weapons amassed by the Venezuelan regime. What is worse, the Russians have openly mused about stationing cruise missiles in Venezuela as a response to the U.S. withdrawal from the Intermediate-Range Nuclear Forces Treaty. The echoes of the Cuban missile crisis are chilling.

Russia’s presence in Venezuela has emboldened nonstate actors as well. The arrival of Syrian security personnel to protect former Venezuelan Vice President Tareck El Aissami, who allegedly oversaw the incubation of Hezbollah inside the country, and the safe haven provided to the National Liberation Army (ELN) and dissident members of the FARC are frightening developments for regional security and stability.

In the financial realm, Putin has recently played host to several of Maduro’s cronies. With PDVSA close to repaying its debts, Maduro is redoubling efforts to secure new Russian loan commitments. Venezuelan Vice President Delcy Rodríguez visited Moscow in August to discuss some possibilities, including arrangements for her country’s flagging agriculture and mining industries. Meanwhile, as the world attended the United Nations General Assembly last month, Maduro paid a visit to Putin in Moscow and was rewarded with the arrival of more Russian military specialists in Venezuela. Also, Russia’s deputy prime minister arrived in Caracas to declare that Russian-Venezuelan relations were “at their best moment”.

Any financial deals that materialize from these meetings will likely aim to break U.S. sanctions and place Russia in even closer proximity to — or perhaps even in partnership with — the transnational organized crime groups that control lucrative resource extraction in Venezuela’s vast, ungoverned frontier.

Russia’s willingness to deepen its involvement in Venezuela highlights the need for creativity in U.S. policy. Precisely because Trump lacks any appetite for the use of force, the United States must step up its sanctions game — issuing new embargos and creatively policing existing ones — as its only chance to dislodge Maduro. Rosneft, which is perhaps Maduro’s best ally, should top the list of new designations, even though U.S. officials have declined to take this measure in the past. Enforcement measures will also have to become more creative. For example, tankers carrying sanctioned Venezuelan oil have resorted to turning off their transponders while approaching or leaving Venezuelan waters, unloading at night, and frequently changing the flags of their vessels in order to evade detection. However, international law requires ships to keep their transponders on, and the United States should work to ensure that the rule is enforced.

Here, Washington should take a page from its tactics against North Korea. Along with Japan and the United Kingdom, the United States has run a sophisticated operation to detect ship-to-ship transfers and sanctions evasion in international waters, even seizing a North Korean vessel found to be in violation. In Venezuela, the United States should do the same, and also issue secondary sanctions targeting the shipping networks moving Venezuela’s oil (including a planned increase in shipments to Cuba) — as the Treasury Department has already done against Iran. The move should include going after the handful of vessels currently lingering off Venezuela’s coast that serve as floating storage facilities for crude oil while Maduro desperately seeks new buyers. ExxonMobil’s announcement that it will bar the use of tankers linked to Venezuelan oil shipments in the last year affects about 250 vessels worldwide and provides another powerful deterrent to moving Venezuelan crude. Targeting cargo insurance companies could be another useful tool in the fight to dislodge Maduro. Lastly, the United States should seek to impose costs on countries such as Fiji, Liberia, and Tanzania — serial offenders — for allowing suspect vessels to fly under their countries’ flags.

Since sanctions are most effective when they are multilateral, the United States must show a more concerted effort with the European Union and the Latin American countries that make up the Lima Group. The EU has sanctioned a mere 25 Venezuelans in addition to its arms embargo on the country. It has held out the possibility of more comprehensive sanctions if Maduro closes the door on mediated negotiations with the Venezuelan opposition. Maduro’s recent pronouncement that he will not rejoin the Norwegian-led talks demonstrates the limits of the EU’s fantasy that he was coming to the table in good faith. At the very least, the Trump administration should pressure the Spanish government to stop the flow of illicit Maduro funds running through its central bank. But even that could be an uphill battle, as the incoming EU foreign minister is a former foreign minister of Spain, Josep Borrell, who has accused the U.S. government under President Donald Trump of behaving like a “cowboy” in Venezuela.

In contrast to Europe’s reticence, Latin American countries have dusted off and invoked the decades-old Rio Treaty, a regional security compact capable of compelling countries to implement sanctions against a mutual threat. After a recent meeting of its consultative body, the signatories to the treaty voted in favor of imposing additional regional sanctions on Venezuela. Of course, the designation and enforcement capabilities of the individual member states vary greatly, but this move is a welcome development that should serve to deny visas to regime insiders, as well as safe places to store their ill-gotten gains. Now that the region has bound itself to a policy of sanctions, the United States must work to ensure that countries uphold their commitments.

For the past few years, the Maduro regime has adapted nimbly to U.S. sanctions, because its criminal activities span the globe and involve a broader network of actors in Russia, Hong Kong, Panama, Romania, Switzerland, Miami, Nicaragua, and El Salvador — to name just a few. That’s why the United States must see the Maduro regime as akin to a criminal network, rather than an isolated political entity, and target that network accordingly.

Although U.S. sectoral sanctions have managed to increase the operating costs to Maduro and his cronies, they have not managed to freeze the regime’s activities, nor have they managed to deter outside powers such as Russia from lending Maduro’s government a hand. Moreover, U.S. strategy has been inconsistent at best — supporting early presidential elections, meeting with regime insiders steeped in narcotrafficking, and begging Maduro to cut and run in return for vague promises of amnesty. As Maduro masses hundreds of thousands of troops on the Colombian border, and as thousands of Venezuelans escape the country daily, getting U.S. sanctions policy in order will be critical to bringing Maduro, and the outside powers that support him, to heel.

Post a comment or leave a trackback: Trackback URL.

Comments

  • kamtanblog  On January 2, 2020 at 1:29 am

    Speculation…mad dog maduro will not
    go without a fight ! The fact that ras-putin is
    supporting him does complicate matters.
    Maduro has the support of most of his military
    and his loyalist population. This is not Iraq or Sadam who was tin pot dictator ex CIA operative put there by USA.
    Hence my suggestion of”speculation” by the
    MSM article above.
    While oil supplies from offshore Guyana is
    flowing what ven does with its oil matters
    little to USA.
    This is another red herring!

    Go figure

    Kamtan

  • Clyde Duncan  On January 2, 2020 at 2:10 am

    “….. Russian troops have embedded themselves in garrisons around Venezuela by the hundreds according to Craig Faller, the head of U.S. Southern Command.”

    I am guessing you have NOT heard of Russia’s Elite Spetsnaz Forces?

    • kamtanblog  On January 2, 2020 at 3:51 am

      Clyde
      My guess is they are training the Venezuelan
      military by invitation of MADuro
      …on how to protect their CIC.
      Am sure USA also has similar
      operatives to protect their CIC.
      Good for goose good for gander !
      Takes two to tango !
      Nazi gestapos are very alive.
      Some very evil 👿 people on
      the planet !

      Neccessary evil ?

  • Clyde Duncan  On January 2, 2020 at 3:29 am

    Russia announces plans to set up its first ever military base in the Caribbean – the country’s largest presence in the region since the Cuban Missile Crisis in 1962

    Russia’s TASS news agency reported the base would be in La Orchila, Venezuela
    The island of La Orchila is situated 125 miles northeast of the capital of Caracas

    After striking a deal with President Nicolas Maduro military jets will land there

    It will be Russia’s largest Caribbean deployment since the Cuban Missile Crisis

    George Martin | Daily Mail Online

    Russia has announced plans to set up its first ever military base in the Caribbean after striking a deal with cash-strapped Venezuela.

    The state-sponsored TASS news agency reported that Russian experts had selected the island of La Orchila, 125 miles northeast of Caracas, as a possible military base about 10 years ago.

    According to the agency, Russia will now be ‘deploying Tu-160 strategic aircraft to the island’, after seeking permission from Venezuelan leader Nicolas Maduro.

    The deployment will represent the one of the largest semi-permanent postings of Russian military hardware to the region since the Cuban Missile Crisis in 1962 – which marked the height of the Cold War.

    Venezuelan law reportedly prohibits a full-time military base from being set up within its borders.

    However, the deployment of supersonic Russian jets would be ‘TEMPORARY’ – according to official sources.

    ‘It is the right idea to include Venezuela in long-range aviation missions,’ military expert Colonel Shamil Gareyev told the Russian newspaper Novaya Gozeta.

    ‘Our strategic bombers will not only have to return to Russia every time, but also won’t have to perform aerial refueling while on a patrol mission in the Americas.’

    ‘Our Tu-160 aircraft arrive to their base in Venezuela, conduct flights, execute their missions and are then replaced on a rotating basis. This is how it should be done.’

    The news comes just days after two of Russia’s nuclear-capable Tu-160 strategic bombers flew over the Caribbean Sea during a 10-hour training mission with the Venezuelan Air Force amid escalating tensions between Moscow and Washington

    The Russian bombers’ deployment has infuriated Washington, where US Secretary of State Mike Pompeo characterized the joint training session as ‘two corrupt governments squandering public funds, and squelching liberty and freedom while their people suffer.’

    The Kremlin rejected Pompeo’s criticism, saying it was ‘highly undiplomatic’ and ‘completely inappropriate’ language.

    ‘As for the idea that we are squandering money, we do not agree. It’s not really appropriate for a country half of whose defense budget could feed the whole of Africa to be making such statements,’ spokesman Dmitry Peskov told reporters.

  • Clyde Duncan  On January 2, 2020 at 3:49 am

    • kamtanblog  On January 2, 2020 at 4:07 am

      Saber rattling by the military !
      Brinkmanship by both sides.

      Q
      Is BRICS (trade block) about to expand
      it’s membership to include Ven EU et al
      ?? Trade of more concern/importance
      than the military spending.
      Maybe Rasputin (Stalinist) will be
      selling a few of his “weapons” WMD
      to its OPEC brother.
      Sell me an AK47 but show me how to
      use it !

      Says simple Simon
      Google arms dealers USA/UK/Russia
      top dealers …

      Kamtan
      expansionist policies.

  • Clyde Duncan  On January 2, 2020 at 8:45 am

    VENEZUELA HAS LONG-STANDING BORDER DISPUTES WITH COLOMBIA AND GUYANA BUT SEEKS TO RESOLVE THEM PEACEFULLY.

    Relations with Guyana are complicated by Venezuela’s claim to roughly three-quarters of Guyana’s territory. In 1814, Great Britain had acquired British Guiana (now Guyana) by treaty with the Netherlands, BUT THE TREATY DID NOT DEFINE A WESTERN BOUNDARY.

    VENEZUELA CLAIMED ITS BORDERS EXTENDED AS FAR EAST AS THE ESSEQUIBO RIVER — an effective CLAIM ON TWO-THIRDS OF BRITISH GUIANA’S TERRITORY.

    IN 1899, A FULL, PERFECT, AND FINAL ARBITRATION SETTLEMENT DIRECTED THAT THE BORDER FOLLOW THE SCHOMBURGK LINE. Since 1987, the two countries have held exchanges on the boundary under the “good offices” of the United Nations.

    In May 2015, Exxon Mobil reported that it had made a “significant oil discovery” in a maritime area disputed by two neighboring South American countries, Guyana and Venezuela.

    In spite of the long-running border dispute, which dates back to the colonial period, the oil giant was given unilateral permission to explore through an agreement with Guyana.

    VENEZUELA CONSIDERED THAT AGREEMENT A “PROVOCATION” AND CALLED FOR A DIALOGUE BETWEEN THE TWO NATIONS TO SETTLE THE DISPUTE IN LINE WITH A 1966 AGREEMENT.

    President Nicolas Maduro described the “serious campaign, promoting hatred and distrust, which is promoting negative elements about Venezuela,” with foreign petroleum lobbies provoking the situation to undermine growing solidarity between Latin American and Caribbean countries.

    Ministry of Foreign Affairs – Co-Operative Republic of Guyana declared:

    The Government of Guyana welcomes the notification by the International Court of Justice that the oral hearing on jurisdiction in its case against Venezuela, formally known as the case concerning the Arbitral Award of 1899 (Guyana v Venezuela), will be held in THE HAGUE FROM MARCH 23 TO 27, 2020.

    Guyana brought its case to the Court following the decision by the Secretary-General of the United Nations, in January 2018, that the controversy between Guyana and Venezuela should be decided by the International Court of Justice.

    Venezuela has claimed, in a letter to the Court, that the Secretary-General exceeded his authority under the Geneva Agreement, and that the Court therefore lacks jurisdiction to adjudicate Guyana’s lawsuit.

    ON THIS BASIS, VENEZUELA HAS INDICATED THAT IT WILL NOT PARTICIPATE IN THE PROCEEDINGS.

    The Government of Guyana welcomes the prospect of a final and binding decision by the Court that will definitively resolve this longstanding controversy, and allow Guyana and Venezuela to proceed to develop excellent and close relations as neighbouring states.

  • Trevor  On January 3, 2020 at 8:22 pm

    Is war coming?

  • Trevor  On January 3, 2020 at 8:22 pm

    Is war coming? Will Iran retaliate?

    • kamtanblog  On January 4, 2020 at 2:05 am

      No..saber rattling !
      Political postulating …brinkmanship !

      In my opinion

      Kamtan

    • Trevor  On January 4, 2020 at 9:23 am

      If Trump keeps on sending drones to murder people in foreign countries, doesn’t that declare war?

      How would America like it if Iran had a drone in American territory? No wonder Trotman claimed that he was “following orders” to sign that oil contract. Exxon is an extension of the US government, and if America can send drones to foreigners in foreign lands, imagine what they can do if people resist America’s demands.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s