Venezuela enters oil-for-food deal with Jamaica

Tuesday, August 2, 2016 - 14:30

Venezuela is now selling oil to Jamaica in exchange for food, medicine, farming materials and building supplies, CNN Money has reported.

Jamaican authorities announced last week that Jamaica would provide up to US$4 million in the form of goods and services to Venezuela.

“You could say that it’s goods and services for oil,” Dr. Wesley Hughes, CEO of the Jamaican government’s PetroCaribe Development Fund, told CNNMoney on Tuesday.

“It’s going to be up to Venezuela to decide what they need.”

This form of payment is part of a trade pact between the two nations.

Venezuela is desperately short on food and medicine.

People wait hours outside supermarkets to buy basic goods like milk, eggs and flour, often only to find empty shelves. Others are dying in ill-equipped hospitals.

Despite the chronic shortages, the Venezuelan government has refused the help of international humanitarian groups like United Nations and Amnesty International.

China has loaned Venezuela $65 billion since 2007, according to the Inter-American Dialogue, a Washington think tank.

Some of those loans are being repaid to China in oil.