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The big surprise of the Venezuelan elections: Brazil still hasn’t recognised Maduro’s victory

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After President Nicolas Maduro was declared elected for the third time in Venezuela, the countries of the Americas were divided over the results.

While Latin American countries led by Argentina and Chile officially claimed that Maduro had ‘stolen the election’, countries such as Cuba and Nicaragua were quick to congratulate the Venezuelan leader on his victory.

This is not surprising, since it is no secret that Argentine leader Javier Milei has been speaking out against Maduro and Bolivarian Venezuela for months, as has the Cuban leadership’s support for Maduro.

What is surprising is that three countries known for their ‘left’ governments have still not recognised Maduro’s victory: Lula’s Brazil, Obrador’s Mexico and Petro’s Colombia.

Three countries are preparing a statement on the ‘lack of transparency’ of the elections

According to Bloomberg, Brazil is in talks with Mexico and Colombia to issue a joint statement demanding that Venezuela count all the votes and publish the results from each electoral district.

The foreign ministries of the three countries, led by leftist presidents with historically close ties to Venezuela’s Nicolas Maduro, refused on Monday to recognise the outcome of Sunday’s election until Caracas takes steps to ensure the transparency of the process.

President Luiz Inacio Lula da Silva is unhappy with the situation in Venezuela and believes that Maduro ‘systematically failed to fulfil his promises of transparency’ during the electoral process, officials told Bloomberg.

To underline its dissatisfaction, Brazil’s foreign ministry instructed the country’s ambassador in Caracas not to attend Monday’s ceremony organised by Venezuela’s electoral authority to certify the results.

Brazil and Colombia have been criticising the ‘election’ for months

Lula said last week that Maduro should learn that ‘when you lose an election, you have to go away and prepare for another one’.

Lula also warned that Venezuela’s economic future ‘depends on a clean election, recognised as legitimate by the international community’.

In March, Colombia and Brazil took the unusual step of criticising Venezuela after some members of the Venezuelan opposition said they had been prevented from registering as candidates for the 28 July elections.

In a statement at the time, Colombia’s foreign ministry warned the Maduro government that preventing opposition candidates from taking part in the vote could ‘undermine the confidence of the international community’.

Brazil’s foreign ministry also said it was following the process ‘with concern’, especially as Venezuela had yet to issue a statement on the blocking.

Both countries argued that the opposition’s problems had raised ‘concerns about free and fair elections.

In separate statements, Venezuelan Foreign Minister Yvan Gil accused Colombia and Brazil of interfering in his country’s internal affairs.

Opposition: We have proof we defeated Maduro

Venezuela’s opposition says it has proof that rival Edmundo González defeated Maduro in the presidential election.

González and opposition leader Maria Corina Machado told reporters on Monday that they had received more than 70 per cent of the vote tallies, which show that González received more than 6 million votes, compared with more than 2 million for Maduro.

González and Machado made their claims hours after Venezuela’s Maduro-controlled electoral council announced that the president had won the election with 51 per cent of the vote to González’s 44 per cent.

According to the opposition, the results did not include vote counts from individual polling stations, which election observers said were crucial to determining the accuracy of the vote count.

Opposition also takes to the streets

The announcement of Maduro’s victory just after midnight on Monday sparked angry protests in the capital Caracas and across Venezuela, with people banging pots and pans throughout the night and into the late morning.

Demonstrators clashed with police, who fired tear gas to disperse the crowds. At least one person was killed in the northern province of Yaracuy, according to Voice of America.

Machado called on opposition supporters to organise demonstrations in Caracas on Tuesday.

US ‘concerned’, Biden to meet Lula

We have serious concerns that the announced result does not reflect the will or the votes of the Venezuelan people,’ said US Secretary of State Antony Blinken.

On the other hand, the Biden administration said on Monday that ‘electoral manipulation’ had destroyed ‘any credibility’ of Venezuelan President Nicolas Maduro’s claim of re-election victory, leaving the door open to new sanctions against the country, Reuters reported.

US officials, speaking on condition of anonymity, said senior aides to President Joe Biden had demanded that Maduro release a detailed breakdown of the vote and that failure to do so would make the international community reluctant to accept the announced result.

The officials did not announce any new “punitive measures” but said Washington would review its sanctions policy against Caracas based on Maduro’s future actions.

“We may be facing a new scenario. We will take that into account as we look at where we can go with sanctions against Venezuela,” one official said.

They argued that the Maduro government had resorted to ‘repression and electoral manipulation’ and said that ‘any credibility of the so-called election results has been destroyed’.

A senior US official said the administration was in contact with Brazil and other Latin American governments about the political situation in Venezuela.

Biden will meet with Brazilian President Lula on Tuesday afternoon, the White House said in a statement.

EU officials meet to discuss Venezuela election

European diplomats will discuss Maduro’s victory in Venezuela’s presidential election today (30 July).

The Council of Europe’s working group on Latin America and the Caribbean will meet at 10.00 Brussels time.

Josep Borrell, the European Union’s top diplomat, wrote in a message on X: ‘The Venezuelan people voted peacefully and in large numbers for the future of their country. Their will must be respected,’ he said.

Borrell added that it was vital to ensure ‘full transparency in the electoral process’, including a detailed vote count and access to voting records at polling stations.

Simon Stano, spokesman for the EU’s diplomatic service, said: ‘We are assessing the election process and results in close contact with national, regional and international actors on the ground. However, we are concerned by allegations of flaws and shortcomings,’ said Simon Stano, spokesperson for the EU diplomatic service.

Elon Musk calls Maduro a ‘dictator’, Maduro responds

Following the presidential election in Venezuela, which saw Maduro and his allies triumph, X owner Elon Musk took to social media to accuse the Venezuelan leader of committing ‘massive electoral fraud’.

Shame on dictator Maduro,” Musk said on Monday.

Musk also retweeted a comment on X from Argentine President Javier Milei, whom he described as his ‘friend’. ‘The numbers have declared the victory of an overwhelming opposition and the world expects the government to concede defeat after years of socialism, misery, collapse and death,’ Milei had said.

Maduro responded by calling Musk ‘the arch-enemy of peace in Venezuela’.

Arguing that Elon Musk was ‘the representative of a fascist ideology, unnatural, anti-society’, Maduro said: ‘Elon Musk is desperate; control yourself. Whoever fights with me will dry up,” he replied, ‘You want to fight? Let’s do it. Elon Musk, I am ready. I’m not afraid of you, Elon Musk. Let’s fight wherever you want,” Maduro said, accusing Musk of wanting to “come with his rockets and his army and invade Venezuela’.

AMERICA

US Treasury threat to countries hosting branches of Russian banks

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The US Treasury Department’s Office of Foreign Assets Control (OFAC) has threatened other countries that the opening of branches or subsidiaries of Russian banks abroad could be an attempt by Russia to evade sanctions imposed over the war in Ukraine.

OFAC warned foreign banks to exercise caution when dealing with newly opened foreign branches or subsidiaries of Russian financial institutions.

This warning includes entities not subject to US sanctions.

Foreign financial institutions dealing with such branches or affiliates should consider that they present significant sanctions risks, including account services, funds transfers or payments, trade finance, and other services such as insurance,’ the statement said.

However, it noted that transactions related to food, agriculture, medicine, energy, and telecommunications are still permitted activities.

OFAC stressed that the Treasury Department ‘has a number of tools at its disposal to thwart Russia’s attempts to finance its defence industry’. One such tool is the Bank Secrecy Act (BSA).

In 2021, the US amended the BSA to empower US regulators to request information from foreign banks with correspondent accounts in the US about any account, including information stored overseas, as part of investigations.

“OFAC’s new warning will lead to an expansion of the practice of closing accounts and suspending other related financial services,” said investment banker Yevgeny Kogan on his Telegram channel.

“The US Treasury has scared everyone so much that it now resembles racial discrimination. There are cases of reluctance to do business with people who do not live or work in Russia, but who also have a Russian passport or whose place of birth is listed in foreign citizenship as the Russian Federation/USSR,” Kogan added.

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AMERICA

US seizes Maduro’s plane

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The United States has seized Venezuelan President Nicolas Maduro’s plane after determining that its purchase violated US sanctions, among other “criminal matters”. The plane, seized in the Dominican Republic, was flown to Florida on Monday, two US officials said.

This sends a message all the way to the top,’ one of the US officials told CNN. The seizure of a foreign head of state’s plane is unheard of in criminal cases. We are sending a clear message here that no one is above the law, no one is above the reach of US sanctions,’ a US official told CNN.

The plane, described by officials as Venezuela’s equivalent of Air Force One, has also been seen during Maduro’s previous state visits around the world.

Dominican Republic President Luis Abinader said the plane seized by the US on Monday was registered ‘in the name of an individual’ and not the Venezuelan government.

Dominican Foreign Minister Roberto Álvarez said the country’s attorney general’s office had received an order from a national court last May to ‘immobilise’ the plane.

The minister said the US had requested the aircraft’s immobilisation in order to search for ‘evidence and objects related to fraudulent activities, smuggling of goods for illegal activities and money laundering’.

The Department of Justice has seized an aircraft that we allege was illegally purchased for $13 million through a shell company and smuggled out of the US for use by Nicolás Maduro and his cronies,’ US Attorney General Merrick Garland said in a statement.

The Department of Justice alleged that the aircraft, a Dassault Falcon 900EX, was purchased from a company in Florida and illegally exported from the US to Venezuela via the Caribbean in April 2023.

According to the Justice Department, the plane was used for Maduro’s international travel and “flew almost exclusively to and from a military base in Venezuela”.

The aircraft was seized for violations of U.S. sanctions against Venezuela and other criminal matters related to this aircraft that we are still investigating,’ Anthony Salisbury, special agent in charge of Homeland Security Investigations, told CNN.

A senior official in the Dominican Republic told CNN that Maduro’s plane was undergoing maintenance on Dominican territory at the time it was seized by US authorities.

The source added that the government had no record of Maduro’s private plane being in the country until it was seized.

According to one of the US officials, US authorities worked closely with the Dominican Republic, which notified Venezuela that the plane had been seized.

According to US officials, several federal agencies were involved in the seizure of the plane, including Homeland Security Investigations, Commerce agents, the Bureau of Industry and Security, and the Department of Justice.

Records show that the plane’s last registered flight was from Caracas to the Dominican capital, Santo Domingo, in March.

In a statement on Monday, the Venezuelan government described the seizure as ‘piracy’ and accused Washington of stepping up its ‘aggression’ against Maduro’s government following July’s presidential election.

Once again, in a recurring criminal practice that can only be described as piracy, the US authorities have illegally seized an aircraft used by the President of the Republic, justifying their action with the coercive measures they have illegally and unilaterally imposed around the world,’ the statement said.

The US has shown that it uses its economic and military power to intimidate and pressure states like the Dominican Republic to serve as ‘accomplices in criminal acts’, Venezuela said, adding that what had happened was ‘an example of the so-called ‘rules-based order’, which seeks to establish the law of the strongest in defiance of international law’.

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Fed’s ‘leading inflation’ expectations unchanged; eurozone inflation down to 2.2 per cent

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The Federal Reserve’s preferred measure of inflation held steady at 2.5 per cent in the 12 months to July, according to data released on Friday that could pave the way for the Fed to start cutting interest rates next month.

The Fed’s target for the headline personal consumption expenditure (PCE) index is 2 per cent annually. Core PCE, which strips out volatile food and energy costs, came in at 2.6 per cent, below expectations of 2.7 per cent.

The figures from the Commerce Department came after Fed chairman Jay Powell said last week that it was “time” to start cutting interest rates as inflation fell and the labour market slowed.

The core PCE data, which is expected after yesterday’s strong US growth data, plays an important role in the Fed’s assessment of inflation.

In the US, personal spending rose by 0.5% in July, in line with expectations, and personal income rose by 0.3%, slightly above expectations of 0.2%.

Core PCE measures the rate of inflation faced by consumers when purchasing goods and services, excluding food and energy prices.

US government bond prices fell slightly following the release of the data. The yield on the two-year Treasury note, which rises when prices fall, rose 0.03 percentage point during the day to 3.92%. The S&P 500 was up 0.7% shortly after the opening bell on Wall Street.

Eurozone inflation fell sharply in August to 2.2 per cent, the lowest level in three years.

The rate reinforced expectations that the European Central Bank (ECB) will cut interest rates next month.

Friday’s preliminary figure was in line with the 2.2 per cent forecast in a Reuters poll and below last month’s rate of 2.6 per cent.

The Eurostat data came after Germany and Spain this week reported sharper-than-expected declines in August.

France also reported on Friday that inflation fell to 2.2 per cent, but the figure was higher than expected and some economists attributed the drop to price pressures from the Paris Olympics.

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