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| Caribbean-Latin America |
| Hugo Chavez halts oil shipments to Honduras |
| 2009-07-05 |
| Venezuelan President Hugo Chavez said his country is suspending oil supply to Honduras, which benefited from energy cooperation agreement Petrocaribe. The ruler announced his decision late Thursday during his weekly radio and TV program Aló, Presidente Teórico (Theoretical Hello President). "We have suspended shipments of oil," Chavez stated. He reported that Petrocaribe energy supplies to Honduras were scheduled for next week. "One of the effects of this measure is that gasoline prices in the Central American country are going to soar." The measure seeks to put pressure on the Honduras government to reinstate Manuel Zelaya, an ally of Chavez, as Honduras President. Zelaya was ousted in an army coup on June 28. Honduras joined Petrocaribe energy alliance in December 2007, under Zelaya. Petrocaribe is a cooperation agreement established in 2005, under which about 20 Caribbean and Central American countries receive some 200,000 barrels per day of oil from Venezuela with long-term credit facilities. |
| Posted by:Steve White |