US diverts CentAm funds for Venezuela: Update

Adds statement from Freedom House.

The US government has allocated $41.9mn to support Venezuela's opposition movement, diverting the funds from three Central American countries.

The funds will go to Venezuela's opposition-controlled National Assembly and its leader, Juan Guaido, whom the US and most western countries recognize as Venezuela's interim president.

The funds will be used "to expand good governance efforts, to promote independent media and the freedom of information, for civil society assistance, and to support human rights organizations," according to the US Agency for International Development (USAID).

"This decision is consistent with the President's direction that the United States will not provide new funds for programs in El Salvador, Guatemala, and Honduras," the agency said, referring to the three Central American countries from where thousands of migrants have been seeking to flee into the US over the past year.

One of USAID's potential "implementing partners" for the US funding to Venezuela's opposition, Washington-based Freedom House, objected to the diversion.

"Freedom House works with democracy and human rights activists around the world in countries where freedom is under threat, including Venezuela, Honduras, and Guatemala. Freedom House does not endorse the plan to divert US funding from the Northern Triangle. Funding in support of democracy and good governance in Central America is critical to promoting economic development and reducing violence in the region," the group's president Mike Abramowitz told Argus in a statement.

Invoking Venezuela's constitution, Guaido declared himself Venezuela's acting president on 23 January, and was swiftly recognized by Washington and by a host of other countries. But contrary to initial expectations, Guaido has not succeeded in forcing President Nicolas Maduro to step down.

Maduro succeeded in thwarting Guaido-led efforts to bring US-supplied humanitarian aid into Venezuela in February and weathered a brief military insurrection on 30 April. Maduro remains in control of the country's military, institutions and borders.

The Opec country is the target of US financial and oil sanctions that have impeded but not stopped vital oil sales.

The Maduro government and national oil company PdV are taking steps to adapt to the sanctions. PdV is increasing heavy oil blending to displace upgrading in order to get around a sanctions-driven shortage of naphtha. And the government is exploring Chinese and Russian financial systems to bypass the western Swift system blocked by sanctions.