Maduro to meet Putin as crisis mounts

Venezuelan President Nicolas Maduro will meet Russian President Vladimir Putin in Moscow tomorrow to discuss oil prices and joint cooperation agreements, Venezuela´s foreign ministry said today.

Maduro has been traveling since 5 January, visiting China, Iran, Saudi Arabia, Qatar and Algeria in what has apparently been a fruitless quest so far for up to $20bn in new loans and support for emergency Opec measures to strengthen oil prices.

Maduro's announcement in Beijing of $20bn worth of financial and investment agreements with China were a reaffirmation of existing financial and joint venture deals.

His subsequent pronouncement of a financial lifeline from Qatari banks has not been substantiated by Doha. His efforts to drum up support for an Opec meeting were also rebuffed.

The president had been expected to return to Caracas tomorrow, where he was scheduled to address the national assembly amid a deepening economic and political crisis marked by acute food shortages and growing calls for his resignation among opposition leaders and, more quietly, some members of the ruling Psuv party.

The foreign ministry said Maduro may prolong his trip until the weekend, possibly also visiting Mexico before returning to Venezuela.

Looting has been reported in Caracas, Maracaibo and other cities since the start of this week despite a stepped up military presence outside food markets.

The defense ministry tells Argus that the armed forces are concerned the food crisis could lead to violent demonstrations and more looting if not addressed quickly by the government. But specific actions must await Maduro's return to Caracas, a ministry official added.

Moody´s Investors Service this week downgraded Venezuela´s government bond rating by two levels to Caa3 from Caa1. "Default risk has increased substantially as external finances continue to deteriorate due to a strong decline in oil prices," the agency said. "Moody's believes that the authorities are unlikely to implement forceful policy measures to curb macroeconomic distortions and imbalances in the near term."

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