Citgo Petroleum Corp., the U.S. refiner owned by the Venezuelan government, will suspend charitable contributions of home heating oil to poor U.S. households -- a sign that falling oil prices may hamstring Venezuelan President Hugo Chávez, whose administration has used an oil windfall to win voters' loyalty at home and allies abroad.
In a surprise announcement, former U.S. Rep. Joseph P. Kennedy II said Venezuela would stop deliveries to his Boston-based nonprofit, Citizens' Energy, which last winter received $100 million of fuel that was distributed throughout the Northeast. Mr. Kennedy said Citgo cited falling oil prices and the world economic crisis for forcing the company "to re-evaluate all of its social programs." Neither Citgo nor the Venezuelan government had any comment.
The move raises questions about whether Mr. Chavez can afford to continue his oil-fueled largess. Venezuela gives cut-priced fuel to many Latin American nations and sends some 100,000 barrels a day of oil and oil products to Cuba in exchange, in part, for the services of 30,000 Cuban doctors, nurses, dentists, and sports trainers. In 2007, Cuba valued total Venezuelan aid at $7.8 billion. Some analysts say Venezuela is now as big a donor to cash-strapped Cuba as the U.S.S.R. was back in the Cold War.
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