Nicolas Maduro’s Venezuelan government expressed on Thursday its discontent after Brazil decided to deny its entry into the BRICS grouping of emerging economies.
Caracas sees this as an “hostile act” against Venezuela’s interests and “aggression”, given the fact that Venezuela had been trying to join this alliance for many years.
Venezuela’s Ministry of Foreign Affairs issued a statement in which it condemned the veto, describing it as “a manifestation of hatred, exclusion and intolerance promoted by Western powers”, aimed at keeping the country out of the organisation.
Tensions rising between Venezuela and Brazil in BRICS. The statement went on to say that this action was an offense against Venezuela, and added insults and sanctions unjustly imposed upon a courageous and revolutionary nation.
“No scheme or strategy designed to undermine Venezuela can change history.”
Moreover, Nicolas Maduro claimed that his administration received support at the Russian summit from other countries for Venezuela’s inclusion in this initiative.
Brazil, under Lula Da Silva, has been one of Nicolas Maduro’s strongest Latin American allies. However, it recently expressed concern about the human rights situation in Venezuela, and took a strong position against the results of the elections held in July.
This raises serious questions regarding Venezuela’s economic and political future, especially if Maduro remains in power or if the United States chooses to increase sanctions on the country.
Brazil’s view on Venezuela joining BRICS
Brazil’s hydrocarbon-driven energy sector, which is a major factor in the country’s reluctance to accept Venezuela into the BRICS, has a large impact on its stance.
Brazil’s oil production has increased by 64% in the last ten years. It reached 3.6 millions barrels of crude per day at the end the year.
In 2024 there was a small drop, to about 3,4 million barrels of oil per day.
Brazil is still the largest crude oil producer of Latin America despite this slight decline.
Venezuela’s oil production has plummeted by approximately 65%, from over 2.7 millions barrels of crude per day, to about 943,000.
Petroguia, a local newspaper in Venezuela, has noted that Venezuela’s long-held status as the dominant oil producer of the region is now no longer valid.
Brazil’s crude oil exports and derivatives have quadrupled in volume over the past decade.
By the end of 2023, Brazil will have reached a peak export rate of 400,000 barrels a day. This puts it directly in competition with Venezuela.
BRICS – more geopolitical than economic?
Henkel Garca, an economist from Econometrica who worked on a report for ICD in the past, suggested that Venezuela’s desire to join BRICS was more about geopolitical strategies than economic gains.
He said that the BRICS countries were being urged to support alliances in light of changing global dynamics.
Garcia pointed out, too, that geopolitical maneuvers such as aligning yourself with nations at odds with US such as Russia and North Korea could have ramifications far beyond economic concerns.
Alejandro Grisanti, a Venezuelan economist, was sceptical of the benefits that Venezuela would receive from joining BRICS.
Venezuela doesn’t meet the criteria for BRICS membership, he said.
Grisanti compared Venezuela’s economy with that of Dominican Republic, and its population with that of Panama or Costa Rica. He questioned the economic impact that joining BRICS could have on Venezuela.
Venezuela’s drive to join BRICS is driven by oil reserves and strategic partnerships. This highlights the complex interaction of geopolitics with economic aspirations.
It is clear that joining the BRICS or not will have no major impact on Venezuela’s economy.
Venezuela must also resolve its political crises before it can improve its overall investment landscape and economic outlook.
Brazil and Venezuela: A Closer Look
Anibal Sanchez, a political analyst and elctro-consultant, explored the factors that influence the relationship between Brazil & Venezuela.
He emphasized the possibility of stronger relations between the two nations, especially with the former president Luiz inacio Lula da So stepping up as a facilitator.
Sanchez discussed Brazil’s role within the BRICS Group, as well as the recent challenges that Brazil has faced.
The complex issues that are at stake, such as territorial disputes and Brazil’s support of different Venezuelan factions.
The Brazilian Foreign Ministry’s approach to BRICS in this changing diplomatic landscape highlights the importance of trust between neighbouring nations.
Sanchez argues that Brazil’s continued resistance to Venezuelan policy is due in part to the lack of trust caused by unfulfilled promises following the Venezuelan election.
There are signs that Brazil and Venezuela, under the leadership of President Lula Da Silva, have made efforts to improve their diplomatic relations. This is a sign of the shared objective of improving stability and co-operation in the region.
Sanchez says that Brazil’s interests extend beyond oil. They reflect a wider commitment to regional stability, strategic positioning and navigating through these complex dynamics.
In an official statement, Venezuela’s government condemned Brazil for blocking its entry to the BRICS group at the Kazan summit. It called the decision “aggression” and a “hostile gesture”.
Sanchez said that “at the same time President Maduro engaged in strategic talks with Iranian official Masoud Pesheshkian to discuss bilateral agreements on oil, mining and healthcare while emphasizing a narrative of strong support with Tehran”.
As a show of his support, Russian president Putin has hailed Venezuela as an enduring and reliable partner both in Latin America and globally.
During his meetings with leaders like China’s Xi Jinping and India’s NarendraModi as well as Recep Tayyip Erdo of Turkey, Maduro highlighted Venezuela’s position as a major ally, outside the influence of Western countries, highlighting its potential to be a powerful energy player.
Venezuela is now on a different political track from Argentina and Panama.
A geographical advantage on the continent seems to have pushed it towards closer relations with Mexico and Colombia.
This development raises important questions regarding the foreign policies of the new US administration. It also prompts a need for rethinking priorities relating to national interest, particularly in the light of uncontrolled immigration and fluctuating petrol prices.
The post Is there any hope for Venezuelan economic growth with BRICS shutting doors to Maduro? This post appeared on The ICD
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