Oil for Food

According to Fox News Latino Venezuela announced that it had modified an existing trade deal with beef-rich Uruguay to allow the government of President Nicolás Maduro to use oil to pay for meat and other goods in an effort to ease the drastic shortages currently plaguing the South American nation.

“The concept of commodity sharing is simple. In a deal first agreed in July 2014, Venezuela agreed to ship 12,300 barrels per day to Uruguay in exchange for beef, soy, rice, and oranges.

Maduro and the Uruguayan government changed the cooperation that now stipulates Montevideo can pay as much as 50 percent of its purchases in 15 years so long as Venezuela’s export barrel remains above $30. The deals allows Uruguay to pay with goods pre-approved by the ailing Venezuelan government while the rest still has to be paid within 90 days at a 2 percent interest rate.