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 , other Spanish companies such as Telefónica, Zara, BBVA, and Mapfre have established a presence in Venezuela. However, their impact on the trade balance remains limited compared to the overwhelming dominance of oil imports.
- 2 To expand their presence in the region. What are the key factors influencing trade relations between Spain and 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 , other Spanish companies such as Telefónica, Zara, BBVA, and Mapfre have established a presence in Venezuela. However, their impact on the trade balance remains limited compared to the overwhelming dominance of oil imports.
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 21:39:16
, other Spanish companies such as Telefónica, Zara, BBVA, and Mapfre have established a presence in Venezuela. However, their impact on the trade balance remains limited compared to the overwhelming dominance of oil imports.
Spain-Venezuela Trade Relations: A Lopsided Affair
Madrid, Spain (EFE) – The trade relations between Spain and Venezuela are far from balanced, with Spanish exports amounting to a mere 146 million euros in 2023, compared to imports of 619 million euros, primarily comprising oil imported by Repsol. This stark disparity is highlighted in the latest report on the country prepared by ICEX Spain Export and Investments, updated in May.
Venezuela’s Oil Dominance
Oil accounts for a whopping 88.6% of total Venezuelan imports to Spain, followed by shrimp (5.5%), semi-finished aluminum products (2%), and rum (1.2%). This dependence on Venezuelan oil has led to a coverage rate of around 24%, which is prone to fluctuations given the volatile nature of oil prices.
Repsol Leads the Spanish Presence in Venezuela
According to ICEX data, 21 Spanish companies, including Telefónica, Zara, BBVA, and Mapfre, operate in Venezuela. Repsol, however, stands out as the dominant player, with a presence in the country since 1993 through its participations in gas licensing entities and joint ventures for crude oil. The company’s total equity exposure in Venezuela had been reduced to €259 million as of December 31, 2023, compared to €411 million a year earlier.
Cardón IV: A Key Natural Gas Field
Repsol, in conjunction with Italian ENI, operates the largest natural gas field in Latin America, Cardón IV, located in the Gulf of Venezuela. The field has a commitment to supply gas to PDVSA until 2036. In October 2023, the United States lifted several sanctions on Venezuela, including those related to oil and gas, after the government of Nicolás Maduro agreed to international supervision of the 2024 presidential elections. However, the US government partially reversed this decision last April, citing Maduro’s failure to comply with his electoral commitments.
Other Spanish Companies in Venezuela
Aside from Repsol
To expand their presence in the region. What are the key factors influencing trade relations between Spain and Venezuela?
Trade Relations between Spain and Venezuela: Limited but Crucial
As the world’s economy continues to evolve, trade relations between nations have become increasingly important. In this context, the trade relations between Spain and Venezuela are particularly interesting, given the unique characteristics of their economic interactions. According to the latest report by ICEX Spain Export and Investments, trade relations between Spain and Venezuela are limited, with exports amounting to 146 million euros in 2023, compared to imports of 619 million euros.
Oil Dominance
A closer examination of the trade data reveals that oil imports from Venezuela to Spain dominate the trade balance, accounting for a staggering 88.6% of total imports. This is largely due to Repsol, a Spanish oil company that has a significant presence in Venezuela, importing oil from the country to supply the Spanish market. Additionally, shrimp, semi-finished aluminum products, and rum also feature prominently in the list of imports from Venezuela.
Spain’s Presence in Venezuela
Repsol leads the Spanish presence in Venezuela, with a significant footprint in the oil sector. The company has been operating in the country since 1993, with participations in gas licensing entities and joint ventures for crude oil. Repsol’s total equity exposure in Venezuela stood at €259 million as of December 31, 2023, down from €411 million a year earlier.
Other Spanish companies, such as Telefónica, Zara, BBVA, and Mapfre, also have a presence in Venezuela, although their impact on the trade balance remains limited compared to the overwhelming dominance of oil imports. These companies have established themselves in the Venezuelan market, with Telefónica providing telecommunications services, Zara operating retail stores, BBVA offering banking services, and Mapfre providing insurance solutions.
Venezuelan Investment in Spain
Interestingly, Venezuelans invest almost three times as much in Spain as Spanish companies invest in Venezuela. This is largely due to the many Venezuelans who have relocated to Spain in recent years, bringing with them their capital and entrepreneurial spirit.
Challenges and Opportunities
The trade relations between Spain and Venezuela are not without challenges. The political and economic instability in Venezuela has led to an uncertain business environment, making it difficult for Spanish companies to operate in the country. Additionally, the US sanctions on Venezuela have also had an impact on trade relations, with Spanish companies having to navigate complex regulations to operate in the country.
Despite these challenges, there are opportunities for Spanish companies in Venezuela. The country is rich in natural resources, and its strategic location in South America makes it an attractive market for companies looking