On the decision by the Venezuelan PDVSA to halt the sale of mineral oil to the US company Exxon Mobil, Sahra Wagenknecht, member of the executive of the Party THE LEFT and member of the European Parliament, declares:

The Venezuelan population is lucky that Hugo Chávez does not let himself be intimidated even by the most powerful companies of this world. As a countermeasure to the attempt by the US company Exxon to dictate Venezuela the conditions for the utilisation of its own raw materials, the Venezuelan government has now put a stop to its oil deliveries to Exxon. That is a courageous step that demands respect. After all, the Venezuelan GNP is only half as large as the turnover of Exxon Mobil, and with net earnings of over 40 bn. $ (2007), the company has enormous resources at its disposal in order to exert influence on politics and justice world-wide.

What lies behind the confrontation with Exxon is a more basic question: Who is supposed to profit from the Venezuelan oil wealth? What he regards to be the answer to this question, President Chávez already decided in June of last year. „The privatisation has come to an end – the oil belongs to all Venzuelans", he declared and demanded from the oil companies active in Venezuela to accept a transformation into joint-venture enterprises where the state holds the majority of capital.

While oil companies such as BP, Statoil or Total agreed to these terms and for that reason continue to receive oil from Venezuela, the oil giant Exxon has been waging on confrontation. It withdrew from Venezuela and turned to courts in the whole world to challenge the nationalisations and to get through its claims to the Venezuelan oil wealth after all. In the beginning of February, the press reported a partial victory for Exxon Mobil: per court order, the oil company succeeded in having foreign assets of the Venezuelan oil company in a value of up to 12 bn. $ frozen.

Venezuela's reaction that has come now is consistent and leaves no doubt that the Chávez government is serious about winning back the power to decide on what to do with its own raw materials.

The signal emanating from this decision is unambiguous: companies such as Exxon have profited long enough from the plundering of the natural riches of other countries! And it has been long enough that the governments of the world have danced to the tune of the mighty companies! The Venezuelan government has the right to determine itself how the ressources in its soil should be utilised! It is only if the power of the companies is broken that poverty and social inquality can be fought effectively and can ultimately be eliminated.

Sahra Wagenknecht, MEP
Brussels, 13 February, 2008