THERE IS NOTHING WE CAN DO

Oct 19, 2010 Features / Columnists, Peeping Tom

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In this week’s column we examine whether the decision of Venezuela to go “nuclear” will trigger a conflict that will pull Guyana along.
This past week, it was announced that the Venezuelan Government had signed a deal with the Russian Government that would see a nuclear power plant being constructed within that country. At first this may seem to be a provocative act on the part of the Venezuelans, an act of defiance against the United States especially given that country’s strong opposition to Iran developing a capability to refine uranium for energy, and Venezuela’s own strong ties with the Iranians.
It would also seem strange that one of the leading exporters of oil in the world and a country with vast reserves wants to develop nuclear. Thus it may be asked why given the amount of oil that Venezuela has, does it want to go nuclear?
In fact, it is the oil wealth that Venezuela possesses that has allowed this development. Without the deluge of petrodollars that flow from its huge oil exports, Venezuela would be unable to afford nuclear power.
And it should also be noted that unlike what many people feel, the bulk of Venezuela’s energy supplies does not come from oil but from hydropower.
In inking the deal with his Russia counterpart, the Venezuelan leader has been clear to indicate that despite its oil reserves, his country is committed to developing alternative sources of energy supplies. The deal with the Russians is therefore all part of a plan by that country to develop such alternatives, never mind there seems no need for it to do so.  Venezuela may therefore be simply attempting to prove that no one is going to stand in its way to develop a nuclear energy capability and perhaps later on, to emerge as a force in South America.
The deal with Russia must however be seen in its overall context. This deal was not just about nuclear power plant or a show of defiance or a demonstration of wider continental aspirations. The deal involved the sale of Venezuelan shares in companies in Europe to Russian firms. The construction of the nuclear plant is part of a package of business deals, which allows the new corporate elite in Russia to extend their reach to other parts of the world. Under the deal a Russian company will buy a 50 per cent share in a German company. The shares are owned by a Venezuelan state-owned company. Russian companies will also secure shares in the oil industry in Venezuela.
Venezuela seems quite keen on swapping its investments in oil in order to secure nuclear energy capability. Why that country sees it necessary to have such a capability may have to do with how it defines its role on the continent. This deal inked with the Russians is going to raise eyebrows in South America and afar. Guyana has to be wary that it is not used as a pawn in this process.
For the Venezuelans, the deal is one of mutual benefit. This is not a one-sided deal. Both Russia and Venezuela come out with something. Both sides emerge with significant benefits. The deal is also about business for the private sector.
In this respect it is no different from the recent agreements signed between Guyana and that country. Guyana secured increased markets for its rice and Venezuela secured a market for the sale of fertilisers and aviation fuel. So far there have been little attempts to study the implications of those deals in terms of who benefits more.
Do you really believe that Caribbean Airlines is going to be able to source any of that cheap aviation fuel? This is doubtful. The most likely beneficiary of that aviation fuel is going to be the small insignificant local aviation industry. And in the case of the fertiliser deal, it would be interesting to see who are the principal players that will emerge in this deal.
Guyana, however, has to be concerned about Venezuela’s nuclear ambitions. Any nuclear accident cannot be contained within the borders of that country. If anything goes wrong with those nuclear plants, Guyana is going to be affected. But so too will be Venezuela’s other neighbours.
As such, Guyana should seek to ascertain exactly where the twin nuclear power plants are going to be constructed and assure themselves of the safety standards that are involved and express its concerns to Venezuela that while it respects its right to development, it should consider the wider implications of developing nuclear energy and take steps to safeguard against any accidents.
But being concerned does not mean that we should become embroiled in the controversy that will arise. While there are implications for Guyana as a neighbour to a country with nuclear- energy, it would be futile and ill-advised for Guyana to raise a storm over this decision by the Venezuelans.
The fact is that with this deal, Guyana is now in a nuclear zone and we have to accept that, however worrying. But what can we do about it? Absolutely nothing but keep our fingers crossed that the plant will be built and operated to the highest safety standards.

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