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Caribbean & Central America - April 2006 (ISSN 1741-4458)
PETROCARIBE: Chávez strikes new oil deals
In another example of Venezuela's oil diplomacy, left-wing mayors in both El Salvador and Nicaragua signed agreements with the state-owned Pdvsa oil company to receive fuel under favourable terms. Much like Pdvsa's US subsidiary, Citgo, which is providing cheap heating fuel to impoverished US communities, the deal has the effect of enhancing Venezuela's standing and undermining the elected governments of these two countries. Both governments are close to the US.
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