Madrid, Sep 13 (EFE).- Trade relations between Spain and Venezuela are limited, with exports amounting to 146 million euros in 2023, compared to imports of 619 million euros, which are practically limited to the oil imported by Repsol.
This is stated in the latest report on the country prepared by ICEX Spain Export and Investments, updated in May, which details that oil represents 88.6% of total imports, followed by shrimp (5.5%), semi-finished aluminum products (2%) and rum (1.2%).
Venezuela ranks 98th as a destination country for Spanish exports and 70th as a supplier country in 2023with a coverage rate of around 24% (percentage of imports covered by exports), although this is an “extremely volatile” figure because it depends on the amount of oil that Repsol receives from the Venezuelan state oil company PDVSA in payment for its debt.
Repsol leads the Spanish presence in Venezuela
Table of Contents
- 0.1 Repsol leads the Spanish presence in Venezuela
- 0.2 BBVA, Mapfre and Telefónica also present in the Venezuelan market
- 0.3 Venezuelans invest almost three times as much in Spain
- 1 Largest gas project in Venezuela, underscoring the significance of this connection.
- 2 What factors contribute to Spain’s limited trade relations with Venezuela despite significant oil imports?
Table of Contents
According to ICEX data, there are 21 Spanish companies in Venezuela, including Telefónica, Zara, BBVA and Mapfre, as well as airlines such as IAG and Plus Ultra, as well as the State Industrial Participation Company (Sepi).
Among them, Repsol stands out, present in the country since 1993 through its participations in gas licensing entities, such as Cardón IV, and in joint ventures for crude oil, such as Petroquiriquire, among others.
Venezuelan oil accounts for 4% of crude oil imports to Spain, which have quadrupled in the last two years, reaching 1.7 million tonnes in the first seven months of this year.
According to the oil company’s annual financial report, Repsol’s total equity exposure in Venezuela as of December 31, 2023 had been reduced to €259 million, compared to €411 million a year earlier.
The provisions include financing granted to its Venezuelan subsidiaries and accounts receivable from the Venezuelan state oil company PDVSA.
Cardón IV, owned by Repsol and the Italian ENI, operates the largest natural gas field in Latin America, located in the Gulf of Venezuela, and has a commitment to supply gas to PDVSA until 2036.
In October 2023, the United States lifted several of its sanctions on the Caribbean country, such as those related to oil and gas, after the Government of Nicolás Maduro
Maduro and the opposition will agree on international supervision of the 2024 presidential elections.
But the US government partially reversed this decision last April, after accusing Venezuelan President Nicolás Maduro of failing to comply with his electoral commitments by preventing opposition leader María Corina Machado from participating in the elections, which forced him to request the
U.S. Treasury Department individual authorizations to operate with PDVSA.
BBVA, Mapfre and Telefónica also present in the Venezuelan market
In the banking sector, it stands out BBVA’s presence with a 16% market share, behind the public bank (Banco de Venezuela) which has a dominant position exceeding 70%.
The insurance sector has 49 operating companies, including: the Spanish company Mapfre, which occupies fifth position with 5% of the market.
In the field of telecommunications, it stands out the presence of Movistar of the Telefónica Group, which has been operating mobile telephone services in Venezuela since 2005, when it purchased the Telcel BellSouth operator.
Telefónica is implementing an investment plan to strengthen its operations in the country, estimated at around 250 million euros, for the development of 5G technology, among other things, according to ICEX.
Venezuelans invest almost three times as much in Spain
The latest available data reflect an accumulated stock of Spanish direct investment in Venezuela of 507 million euros in 2021, while Venezuela’s investment in Spain was almost three times as high, at 1,428 million.
Spanish investment in Venezuela is mainly focused on the energy and financial sectors, which places the country at number 50 on the list of nations by investment position in Spain.
Venezuela’s direct investment in Spain is significantly higher and focused on the real estate sector, although it has experienced a notable decline from €5 billion in 2020 to €1.428 billion in 2021, which is attributed to investors obtaining residency through the golden visa linked to the purchase of a home.
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2024-09-14 21:37:16
Largest gas project in Venezuela, underscoring the significance of this connection.
Title: Trade Relations between Spain and Venezuela: A Limited but Significant Connection
Meta Description: Explore the current state of trade relations between Spain and Venezuela, including export and import figures, key industries, and prominent Spanish companies operating in the country.
Keywords: Spain, Venezuela, trade relations, export, import, oil, Repsol, Telefónica, BBVA, Mapfre, investments, sanctions, economic relations.
Madrid, September 13 – The trade relations between Spain and Venezuela are limited, with Spain’s exports amounting to 146 million euros in 2023, compared to imports of 619 million euros, largely consisting of oil imported by Repsol. This is according to the latest report on the country prepared by ICEX Spain Export and Investments, updated in May.
Venezuela Ranks 98th as a Destination Country for Spanish Exports
Venezuela ranks 98th as a destination country for Spanish exports and 70th as a supplier country in 2023, with a coverage rate of around 24% (percentage of imports covered by exports). However, this figure is extremely volatile due to the amount of oil that Repsol receives from the Venezuelan state oil company PDVSA in payment for its debt.
Repsol Leads the Spanish Presence in Venezuela
There are 21 Spanish companies operating in Venezuela, including Telefónica, Zara, BBVA, and Mapfre, as well as airlines such as IAG and Plus Ultra, and the State Industrial Participation Company (Sepi). Repsol stands out among them, present in the country since 1993 through its participations in gas licensing entities and joint ventures for crude oil.
Venezuelan Oil Accounts for 4% of Crude Oil Imports to Spain
Venezuelan oil accounts for 4% of crude oil imports to Spain, which have quadrupled in the last two years, reaching 1.7 million tonnes in the first seven months of this year. Cardón IV, owned by Repsol and the Italian ENI, operates the
What factors contribute to Spain’s limited trade relations with Venezuela despite significant oil imports?
Spain’s Limited Trade Relations with Venezuela: Oil Dominates the Scene
Madrid – Spain’s trade relations with Venezuela are limited, with exports amounting to a mere 146 million euros in 2023, dwarfed by imports of 619 million euros, primarily consisting of oil imported by Repsol. This is according to the latest report by ICEX Spain Export and Investments, updated in May.
Venezuela Ranks 98th as a Destination Country for Spanish Exports
Venezuela ranks 98th as a destination country for Spanish exports and 70th as a supplier country in 2023, with a coverage rate of around 24%. However, this figure is extremely volatile, depending on the amount of oil that Repsol receives from the Venezuelan state oil company PDVSA in payment for its debt.
Repsol Leads the Spanish Presence in Venezuela
Repsol stands out as the leading Spanish company present in Venezuela since 1993, with participations in gas licensing entities, such as Cardón IV, and in joint ventures for crude oil, such as Petroquiriquire, among others. The oil company’s total equity exposure in Venezuela as of December 31, 2023, had been reduced to €259 million, compared to €411 million a year earlier. Repsol’s presence in Venezuela is significant, with Cardón IV, owned by Repsol and the Italian ENI, operating the largest natural gas field in Latin America, located in the Gulf of Venezuela.
Other Spanish Companies Present in Venezuela
In addition to Repsol, there are 20 other Spanish companies present in Venezuela, including Telefónica, Zara, BBVA, and Mapfre, as well as airlines such as IAG and Plus Ultra, and the State Industrial Participation Company (Sepi). BBVA, Mapfre, and Telefónica are also prominent players in the Venezuelan market.
Venezuelans Invest Almost Three Times as Much in Spain
Interestingly, Venezuelans invest almost three times as much in Spain, highlighting the significance of this connection. The largest gas project in Venezuela, Cardón IV, underscores the importance of this partnership.
US Sanctions and Elections in Venezuela
In October 2023, the United States lifted several sanctions on Venezuela, including those related to oil and gas, after the Government of Nicolás Maduro and the opposition agreed on international supervision of the 2024 presidential elections. However, the US government partially reversed this decision in April, citing Maduro’s failure to comply with his electoral commitments, forcing companies to request individual authorizations to operate with PDVSA.
The Future of Spain-Venezuela Trade Relations
As the situation in Venezuela continues to evolve, Spain’s trade relations with the country are likely to remain limited, with oil dominating the landscape. However, with companies like Repsol, BBVA, Mapfre, and Telefónica maintaining a presence in Venezuela, there is potential for growth and investment in the future.
Optimized keywords: Spain, Venezuela, trade relations, oil, Repsol, BBVA, Mapfre, Telefónica, ICEX, PDV
