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Petrochemicals for Petro: Venezuela Intends to Supply Oil to Russia for Crypto Only
President of Venezuela Nicolas Maduro has recently negotiated with head of Russian government Vladimir Putin about further collaboration between the two countries. One of the subjects of their discussion was Venezuela supplying oil to Russia on new terms.
Al finalizar la exitosa agenda de trabajo con nuestros hermanos de la Federación de Rusia, realizamos un balance, muy positivo, para el bienestar del pueblo venezolano. ¡Gracias pueblo de Rusia! ¡Gracias Presidente Vladímir Putin! pic.twitter.com/vm5l022R2F
— Nicolás Maduro (@NicolasMaduro) December 6, 2018
‘Oil investments’ agreed on
Nicolas Maduro wants to receive the Venezuelan allegedly oil-backed crypto coin Petro as payment for oil and petrochemicals. VTV Canal 8 reports that the two presidents came to an agreement on this.
President Maduro calls this a Russian oil investment. Apparently, an oral agreement has been made so far, purchasing oil for $5 bln in crypto. Apart from that, Russia will help Venezuela with the gold-mining industry, weapon systems and provide military experts to teach the local instructors deal with the latter.
In an interview, Maduro mentioned that the Venezuelan side has given a layout of all pros of using digital currency to the Russian partners and negotiations on using Petro in mutual settlement payments.
Yuri MolchanPetro as a tool to avoid economic sanctions
Nicolas Maduro has several times stated that he intends to use Petro currency to evade sanctions imposed on Caracas by the USA. Presently, on orders of the Venezuelan president, the rate of the Petro has been raised in order to fight the hyperinflation the country has been in.
Maduro also stated that the proposal has already been included into an economic roadmap for the cooperation between Russia and Venezuela made by a commission with members from both side. The plan will start to be implemented in spring 2019.
Experts disagree
Crypto developers and general experts in politics and the economy believe that the Petro coin is a fake which is hardly backed by any physical assets. Venezuelan government has still not revealed the secret – oil in which exact region of the county backs the crypto coin.
What they assume is that even if there is an oil area which could be used for it, the country cannot afford erecting the necessary infrastructure to produce energy commodities.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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