ANNOUNCEMENT 30 Mar 2009In March 2009, the government of Venezuela announced altered domestic business conditions for foreign investors.
NUMBER OF INTERVENTIONS
Decree No 6.656 (March 30, 2009) published in the Official Gazette of the Bolivarian Republic of Venezuela (Gazeta Oficial de la Republica Bolivariana de Venezuela, Numero 39.150, Martes 31 de Marzo de 2009): http://www.fundacite-trujillo.gob.ve/pdf/gaceta39150.pdf (pages 368.265 to 368.267)
On March 30, 2009, the Venezuelan President Hugo Chavez issued a decree (Decree No 6.656) on the nationalisation and expropriation of a rice plant owned by the American company Cargill. The justification of this measure is based on a decision taken at the beginning of March 2009 imposing that 80 per cent of the rice produced has to be basic white rice. The Venezuelan authorities claimed that Cargill did not comply with this rule.
This measure is included in the GTA database because the nationalisation was forced and the compensation (if there is any) for the expropriation is most likely tothe detriment of foreign commercial interest.