PetroCaribe Arrives

September 2006 | Risk Summary

The heavily debated PetroCaribe oil deal between Venezuela and several Caribbean countries has now become reality in Grenada. In July, the government signed a Commercial Contract of Oil supplies under the framework of the PetroCaribe Bilateral Agreement. Under the terms of the deal, participating countries will receive Venezuelan oil at concessionary rates. In return, Venezuela is to be repaid in goods and services, including the supply of agricultural items such as banana and nutmegs. BMI remains concerned about Hugo Chávez' petro-diplomacy throughout the region. While the short-term benefits to Grenada the are clear, the long-term implications of the deal are

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