Venezuela’s closest political ally, Russia has recently stated that they are not ready to conduct the transaction with the South American nation’s Petro cryptocurrency.
During the previous year, Russia sent their deputy of finance minister Sergei Storchak to Caracas, along with a team of financial experts and central bank officials. During his time their, Storchak remained in contact with the presidency, as well as Venezuela’s finance minister and Central Bank President Calixto Ortega. At the current moment, Venezuela’s financial position is worsening and is hoping the investment made into Petro will pull them out of the economic quagmire.
The Bell, a Russian-based media outlet, has stated that Storchak has given the Venezuelan president Nicolas Madura a list of recommended economic measures. Although Storchak and his team did comment that the Petro had “received positive diplomatic evaluations” from experts, the minister stated that Russia “is not ready to use the Petro in mutual settlements.”
This news has left Maduro in a negative position, as he was the one push hard for the acceptance of this oil-backed cryptocurrency quite fiercely, which the country launched during last February. The United States banned dealing with Petro and warned that countries and companies conducting business deals using the Petro will run afoul with US laws. Reports of Venezuela offering Indian companies missive discounts in purchasing Venezuelan oil using Petro has been quite unsuccessful for them.
Venezulea economic troubles are still going strong it seems. With this recent news, the Petro legitimacy will be declining if they don’t manage to convince Russia some time soon. Even so, while the Petro may not be doing well, other cryptocurrencies have flourished quite well among the common populace and has become a prop for people to purchase their goods.
Do you think the Petro will succeed?
Let us know your thoughts.