Hugo Chavez Gets U.S. Handouts

Newsmax reports:

Barely a day goes by without Hugo Chavez hurling an over-the-top insult or threat at the United States yet Chavez, president of oil-rich Venezuela, is collecting hundreds of millions of dollars in subsidies from the United States.

According to the Washington Times, the U.S. subsidies - a result of what the Times called "an obscure 20-year-old oil pricing formula - are part a supply contract between Venezuela's state-owned Petroleos de Venezuela (PDVSA) and its wholly owned U.S. subsidiary, Citgo Petroleum Corp., which forces Citgo to buy PDVSA's crude for at least $5 a barrel over market prices."

Explained the Times " The net effect is to reduce Citgo's taxable earnings in the United States and to boost Venezuela's share of oil profits by as much as $1 million a day."

"At the moment, we have the strange situation where the USA is subsidizing Venezuela to the extent of the tax relief on the excess above-market prices" Oliver Campbell, a former finance coordinator of PDVS told the Times.

Great moments in government.