Chavez is planning on causing Venezuela to nationalize all energy production assets. See the CNN story. See Chris Borgen's take at opinio juris. There'll be a lot to fight about with respect to compensation. As we hav epointed out earlier, Venezuela does not have a BIT with the U.S., and Venezuela is only an observer to the Energy Charter Treaty. So, it is not clear how this will come to a formal forum for a U.S. owner of energy assets in Venezuela.
I am sitting in Miami Airport, on my way home from Buenos Aires. I learned that despite Argentina's recent massive default on debt, it is able to enter the international debt markets with only a modest (less than 2%) risk premium. This is pretty astounding given that investors recently lost 70% of their investments. Are those who do not remember, and impute in thier decisions, history, condemned to repeat it? Is the lack of memory a result of a modern lack of continuing or durable sovereignty--is the state a new "person" every few years?
