"Chávez Seizes Assets of Oil Contractors"

By Fiorella Bafundo

Hugo Chavez, president of Venezuela, ordered the National Guard to seize the assets of some foreign industries on Friday, after the National Assembly approved the decision on Thursday afternoon, when the National Guard started occupying the fabrics. The seizures were mostly implemented in Zuglia, at the west of the country, where some people argue there is a lot of opposition to Chavez’s policies.
This move in Chavez strategy is said to be due to the economic crisis, as Venezuela “relies on oil for about 93 percent of its export earnings” and its prices have fell notably. Even though these kind of policies make the business environment for private owners very unstable and risky, some international companies such as Chevron and Total from France preferred to stay in the Venezuelan land because of its enormous oil reserves.