It is no secret that Venezuela is in a difficult economic situation. In fact, it could be said that this South American country is in the worst economic crisis in the entire world and in its history.
However, all crises bring opportunities.
Venezuela is a country that has a highly prepared population, deeply mixed culture, and very diverse landscapes. However, when we talk about Venezuela and business, we are talking about a productive and export potential without comparison in the region.
This situation of crisis, combined with the sanctions imposed by the US government, creates a complex and unattractive panorama for investment in Venezuela. However, for those who know how to look beyond the obvious, Venezuela remains a land of opportunity.
Why? Because Venezuela continues to produce first-class commodities at a price well below international standards.
Venezuela is mainly known for its oil production and this industry, being nationalized, falls within the framework of the sanctions applied by the US government. This implies that participating in this industry is probably not very attractive for many investors, especially if they have some kind of links with the United States.
But in Venezuela, there is still the first-rate production of many other commodities that do not fall within the framework of the sanctions since they come from private entities and do not involve collaboration with the Venezuelan regime. This means you would not incur any legal problems.
You only need an expert with the best contacts in the market who can offer you first-class advice to be able to buy top-level products below the international price.
And, as usual, at Privatus Maximus, we can offer that.
Investing in commodities in Venezuela
Venezuela is much more than just oil. Indeed, the production of many products is at an all-time low. However, the sanctions have scared away many potential buyers who think that the United States will penalize any kind of trade with a Venezuelan buyer.
This is not the case. Only transactions with the Venezuelan government, companies in which the Venezuelan government owns 50+1% of the shares or any of their top members, would incur such sanctions.
Before the arrival of oil, and during times when oil prices have been at their lowest, Venezuela has remained afloat (even growing under challenging times for the region) thanks to the incredible amount of agricultural products from its extremely fertile lands.
In Privatus Maximus, we have prepared a small list of the main commodities in Venezuela, their potential, and legal status, especially regarding the already mentioned sanctions.
Crustaceans, mainly shrimp
USA, France, and Spain.
China, Turkey, and Russia have gotten closer to the Venezuelan market and might soon be the top importers.
Japan, Switzerland, Russia, and USA
Oil and petrochemical products
Historically, Venezuela has been recognized as one of the most important oil producers in the world. The country has one of the largest oil reserves in the Orinoco Belt, which, added to the production in the Zulia state, covers practically all the national production of oil and hydrocarbons. Their characteristics are so attractive to the most prominent multinationals in the world that being present in Venezuela is a competitive advantage for any economic actor in the oil industry.
The recent tensions with the government of the United States of America were particularly aggravated by Executive Order 13850, which prohibits US Persons (individuals or organizations with ties to the US) from all transactions with PDVSA, which is the Venezuelan state-owned oil company.
Other US government sanctions prohibit US persons from engaging in mining transactions. This has made the management of these sectors very complicated in the international legal framework because any individual or organization with any link or operation in the United States is subject to the almost absolute prohibition of trading in Venezuelan oil and minerals.
Given this complex situation of sanctions concerning Venezuela, many of the potential investors have decided to leave this wonderful country. However, even if you are a ‘US Person,’ that is, someone with some kind of economic link or interest with the United States, there is a vast array of assets exempt from the scope of US sanctions, of equal importance, unparalleled quality and with an attractive cost that you cannot overlook when investing in Latin America.
The Venezuelan legal framework is extremely complex, and the sanctions applied by the US make it even more complicated. Your best option is to present us with your case and the commodities you are potentially interested in, and our experts will seek a tailor-made solution so that you do not have any legal issues with the US authorities.
Fish and aquaculture (mainly shrimp)
In this sense, Venezuela is also recognized as one of the most important producers of shrimp and fish products. These products are not only of an extremely attractive quality for consumers but also have unbeatable prices thanks to the low operating costs that the South American country maintains.
This is one of the least known resources in Venezuela. Fishing resources have been little exploited because the artisanal industry is protected by law. However, Venezuela became the largest fishing exporter in the entire Caribbean between the end of the last century and this century with a production that approached 500 thousand tons per year.
However, due to these regulations that protect the artisanal fishing of various fish and seafood, an industry that has developed exponentially in recent years and from an exclusively private initiative is aquaculture, especially shrimp aquaculture.
This industry is fundamentally centered in the west of Venezuela, in the states of Zulia (which concentrates 70% of national production) and Falcon, with small production spaces in the east of the country, in the states of Sucre, Anzoátegui and Nueva Esparta.
The industry has grown exponentially in Zulia, to the point that it is now the second-largest export product after oil. Today, production exceeds 30,000 tons and should double by 2022. Lake Maracaibo, which borders Zulia territory, presents ideal conditions for the development of the industry.
We are talking about first-class products, generated in extremely favorable climatic conditions under expert hands and that you will be able to acquire at a much lower price than in any other market.
Only in Venezuela.
Given the current dynamics of the Venezuelan economy, all products from agricultural activity in Venezuela are much cheaper than any other product of the same nature produced elsewhere in the region because the purchasing power of its citizens forces the economy to adapt.
We’re talking about land with incomparable qualities of economic labor, a unique geographic location that serves as the door to Latin America, and with incredible proximity to North America. Add to that a production level that has adapted its costs to a low purchasing power, and it leads to the perfect storm to get a product at extremely attractive prices (even 10 to 20% below the international standard) and better quality than that offered by traditional producers.
Both Venezuelan cocoa and coffee are the recipients of excellent international awards. They are recognized by professionals and connoisseurs due to the quality standards under which they are produced and the favorable climatic conditions.
Taking advantage of this situation in which prices are well below international standards can be the perfect opportunity for you to obtain a first-class product at a bargain price to be able to sell it in your country.
Who are we, and what can we do for you?
In Privatus Maximus, we are committed to your freedom. We want to see you succeed in the business world. That is why we offer you the best financial, banking, and asset protection products and the best investment opportunities in the market.
In these 25 years working hand in hand with Privatus Maximus, we have built up an unrivaled network of experts that helps us continue to offer you the best opportunities in the market.
If you are familiar with the financial world, you will probably be familiar with the term distressed asset. These are assets that are sold at a bargain price because the owner has no choice.
All Venezuela must be seen as a great distressed asset.
Real estate has lost almost five times its value and many are taking advantage of this to buy their dream home at a bargain price.
At Privatus Maximus, we have access to all types of real estate in Venezuela, take advantage of this opportunity and get a 500% return on investment! If you want to know more, read our article about real estate investment in Venezuela here .
And other industries do not escape this process.
That’s why in Privatus Maximus, we have top-level experts with the best contacts in the shrimp and agricultural industry and much more in Venezuela, which can help you acquire all kinds of commodities at much lower prices than international ones.
Having an experienced ally who knows the Venezuelan market, knows how to navigate the complex legal framework of the country, and is well aware of the scope of sanctions imposed by the US government is essential to get the best benefits from your investment.
Depending on the sector, there are limitations to exportable production because a certain percentage must be destined for the domestic market. The regulatory environment for agricultural activities, because it is considered by the government to be an industry of national interest, is highly changeable and dynamic.
For this reason, great care must be taken in choosing the suppliers in order to guarantee stability in the fulfillment of long-term commitments.
In Privatus Maximus, we have the most qualified professionals on the ground in legal matters, capable of performing due diligence of regulatory compliance to verify and audit the adaptation of the company’s internal processes, suppliers, and even customers to whom services are provided, to the regulatory requirements of Venezuela. This ranges from administrative requirements and all permits and legal procedures to national and international corporate structuring and contracting in general.
This due diligence also allows verifying that the Ultimate Beneficial Owner (UBO) of one or several determined transactions is exempt from the North American sanctions, allowing the investor to establish commercial relations within the framework of the international financial legality.
In this sense, we can establish Compliance Programs for those investors that, due to the nature of their business, have risk profiles of incursion in operations prohibited by above-average sanctions. For those investors with a lower risk profile, strictly necessary control and audit mechanisms can be established to mitigate any risk and maintain an adequate flow of business safely.
We also have experts connected to the most important chambers and producers in the country in several of the most relevant areas, allowing us to establish business alliances with a strong foundation of trust.
Taking into account the complex legal framework for international investments in Venezuela, we work on a case-by-case basis offering tailored solutions to each of our clients.
Do not hesitate to consult us regarding the purchase of any commodity. We can find a legal, fast, and secure solution for you.
With our specialized advice, you will be able to acquire Venezuelan commodities of all kinds without legal problems, without headaches, and at bargain prices.