Venezuela Paying Iran in Gold in Exchange for Help with Collapsing Oil Refineries

The Hudson Institute, a right wing think tank based in Washington DC, recently published a conversation with Elliot Abrams, regarding Venezuela’s oil sector.

Rather than worrying about pressing domestic issues such as soaring Coronavirus mortality rates, unemployment numbers in the millions, and an economy collapsing at the seams, the US has instead been focusing its tax-payer funded attention towards its failed regime-change obsession with Venezuela. Elliot Abrams, the seasoned war-hawk who has spent the entirety of his professional career championing for instability and regime change around the world, has exclaimed that Nicholas Maduro has been receiving aid from Iran to help rebuild its battered oil industry, and in return has been paying Iran with gold.

According to unknown sources, Venezuela shipped approximately $500 million worth of gold to Iran via airplanes. In exchange, Iran extended help to the country’s collapsing oil refineries, given that the country has been suffering from a fuel shortage which resulted in mass protests across the country. Coincidentally however, it is the direct result of US sanctions on the import of oil diluents that have led to the deterioration of Venezuela’s fossil fuel supply.

Amid the coronavirus pandemic Venezuela has been experiencing a bout of hyperinflation, rendering the country’s official currency, the Bolivar, useless. Back in 2010, an ounce of gold in Venezuela would cost approximately 1000 Bolivars but now, under a period of hyperinflation, that same ounce of gold costs 300 billion Bolivars. Thus, it is only practical that Iran would be receptive to payment in gold for its services.

Information for this briefing was found via OilPrice, Zero Hedge, Hudson Institute, and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.