Background on Monómeros and its Significance
Monómeros Colombo Venezolanos, a prominent fertilizer plant in Venezuela and one of its most valuable assets, is at risk of losing its operating license in Colombia due to the United States’ pressure on Nicolás Maduro’s regime. This plant produces approximately 28% of Colombia’s fertilizers.
Who is Gustavo Petro?
Gustavo Petro, the President of Colombia, has expressed his intention to acquire the majority of Monómeros’ assets. This company plays a crucial role in Colombia’s food production, and Petro promised during his campaign to purchase the majority of its assets.
US Department of Treasury’s Decision
According to a Bloomberg report, the US Department of Treasury will not renew Monómeros’ license that allows them to commercialize products and conduct financial transactions, including port services. This decision, which expires at the end of June, could isolate Monómeros from the financial system, jeopardizing the plant’s operations.
Maduro’s Attempts to Sell Monómeros
Before the license expires, Maduro’s regime attempted to sell Monómeros to private entities. However, Petro’s government intervened to prevent the sale. In a letter to Maduro in November, Petro urged him to reconsider privatization plans, arguing that it would increase the cost of agricultural products in both countries.
Impact on Colombian Agriculture
Monómeros’ potential shutdown could negatively affect small farmers who have benefited from highly subsidized raw materials provided by Venezuela due to a 20-year bilateral agreement with Colombia.
Colombian Regulatory Oversight
In the midst of sale plans, Colombia’s Financial Superintendence placed Monómeros under its highest level of oversight to preserve the company and jobs. In March, the Financial Superintendence denied Monómeros’ sale request to Nitrofert Asset Management S.A.S., citing insufficient, unclear, and inaccurate information.
Key Questions and Answers
- What is Monómeros? Monómeros Colombo Venezolanos is a fertilizer plant in Venezuela that produces around 28% of Colombia’s fertilizers.
- Why is the US pressuring Maduro’s regime? The US aims to influence Venezuela’s political situation and is targeting Monómeros due to its significance as a valuable Venezuelan asset.
- Who is Gustavo Petro, and why is he relevant? Gustavo Petro is the President of Colombia who aims to acquire Monómeros’ assets for food production purposes in his country.
- What are the potential consequences of Monómeros’ shutdown? The shutdown could negatively impact small farmers who rely on subsidized raw materials from Venezuela and disrupt the supply chain for Colombian agriculture.
- What role does the Financial Superintendence play? The Financial Superintendence of Colombia oversees Monómeros to preserve the company and jobs, denying a sale request due to insufficient information.
