Colombian President Stands Against Privatization of Venezuelan Petrochemical Company Monómeros
Mexico City, Mexico, November 11, 2024 (our website) - Levelling a firm blow against the prospect of selling Venezuelan state-owned agrochemical biz, Monómeros, Colombian Prez Gustavo Petro voiced his stalwart opposition in a no-holds-barred letter to Nicolás Maduro.
In a straight-talking missive dispatched to his Venezuelan counterpart, Petro made it crystal clear that he ain't buying into plans by Industry Minister Alex Saab to sell off the company that plays a pivotal role in Colombia's agricultural sector, peddling fertilizer and agrochemicals used in the production of coffee, potatoes, and palm oil.
"The privatization and sale of Monómeros will lead to inflated prices for primary agricultural products in our countries," Petro's letter, dated Friday, laid bare. "Also, it will force our farmers to pin their hopes on foreign products and the price of agricultural inputs on the international market."
Petro didn't shy away from painting a bleak picture: "There's no doubt this move could jinx millions of people representing the foundation of food sovereignty in our zone to poverty and hunger."
For decades, Petro's nodding been swayed by normalizing Monómeros' operation, a subsidiary of Venezuela's state petrochemical Pequiven, due to its vital role in keeping prices low and steady for agricultural producers in the nation.
"For over five decades, Monómeros has boosted Colombian and Venezuelan farmers by manufacturing and selling agricultural inputs at reasonable rates. Currently, Monómeros supplies urea to millions of Venezuelan and Colombian families... and it ensures they earn sufficient income for a decent livin'," the president's letter read.
The plan to offload Monómeros is reportedly brewing within the cabinets of newly minted Industry Minister Alex Saab. A Colombian-Venezuelan businessman, Saab gained international acclaim when he was nabbed during a refueling stopover in Cape Verde in June 2020, while en route to Iran to discuss food and fuel import deals amid U.S. sanctions. At the time, Saab served as Maduro's government envoy.
Venezuela successfully negotiated the release of Saab late last year. He joined the cabinet in October, replacing his predecessor who met an untimely ousting following a corruption scandal.
On social media, Petro traded diplomacy for brutal honesty, claiming Saab's proposal was as mad as a hatter's tea party. Before becoming president, Petro had thrown shade at Saab and his business practices.
Colombian news outlet El Colombiano has speculated that the push to ditch Monómeros comes from concerns bubbling up in Caracas concerning the recent election of Donald Trump as the U.S. president. The agrochemical company currently sails under sanctions waivers issued by the U.S. Treasury Department. But those exemptions could be switched off should Trump opt to impose the full scope of sanctions on Venezuela, as he did during his first term.
According to El Colombiano, Monómeros is skidding dangerously towards a repeat sanctions regime following a reported transfer of funds to its parent company, the state-owned Pequiven, via a Hong Kong intermediary, a transaction banned by the U.S. Treasury Department.
Petro isn't alone in his fight against the sale. Rodrigo Ramírez, a Monómeros board member appointed by the Colombian government, has thrown in the towel in protest of the rumored plans to auction off the company.
Considered Venezuela's second-most valuable foreign asset after CITGO, Monómeros faced a tough spell under the leadership of Iván Duque's conservative administration, which seized control of the company in 2019 and handed the reins to Juan Guaido's self-proclaimed "interim government." The firm grappled with a series of scandals and corruption allegations under successive Guaido-appointed boards, which took a heavy toll on productivity and caused issues for Colombia's rural producers. Eventually, the company came under Colombia's corporate watchdog before being returned to the Venezuelan government following Petro's inauguration as Colombia's president.
Edited by Ricardo Vaz in Caracas.
Background:The potential sale of Monómeros, a Venezuelan state-owned agrochemical firm, is a hot-button issue due to its strategic importance in the region. Monómeros plays a crucial role in the production of fertilizers and other agricultural inputs essential for both Venezuela and neighboring countries like Colombia.
Reasons for Opposition:Colombian President Gustavo Petro's opposition to the sale stems primarily from worries about escalating costs for agricultural inputs. The likelihood of higher prices for fertilizers and other critical inputs under private ownership could put a significant burden on the agricultural sector in Colombia, potentially boosting food prices and jeopardizing food security efforts.
Furthermore, Petro's stance might also be influenced by broader geopolitical and economic considerations. The sale could lead to increased dependence on foreign investors or corporations, potentially impairing regional sovereignty in agricultural markets.
Implications:The implications of Petro's opposition to the sale are wide-ranging:- Economic Impact: Blocking the sale could aid in maintaining stable prices for agricultural inputs, bolstering local farmers and food producers. However, it might also hinder potential investments and modernization that a private sale could foster.- Political Tensions: Petro's stance could stir up diplomatic tensions with Venezuela if the Venezuelan government views the opposition as interfering in their domestic economic policies.- Regional Cooperation: This issue might bring regional cooperation agreements or frameworks into focus, ensuring that decisions regarding strategic assets like Monómeros align with broader regional interests and security.
- Despite the potential for increased foreign investments and modernization, Colombian President Gustavo Petro's opposition to the sale of the Venezuelan state-owned agrochemical firm, Monómeros, aims to maintain stable prices for agricultural inputs and support local farmers.
- The controversy surrounding the sale of Monómeros risks escalating diplomatic tensions with Venezuela, as Petro's stance might be perceived by the Venezuelan government as interference in their domestic economic policies.
- The fight against the sale of Monómeros is not solely Petro's; Rodrigo Ramírez, a board member appointed by the Colombian government, has also voiced his opposition, protesting the rumored plans to auction off the company.
- The strategic importance of Monómeros extends beyond Colombia, as its role in the production of fertilizers and other agricultural inputs is pivotal for regional food security efforts.
- With geopolitical and economic implications, this issue might spark discussions about regional cooperation agreements or frameworks, ensuring that decisions regarding strategic assets like Monómeros align with broader regional interests and security.
