There is some cost for governments nationalizing the assets of foreign firms

There is some cost to Venezuelan President Hugo Chavez taking the assets of firms:

NEW YORK (Reuters) - Exxon Mobil Corp has moved to freeze up to $12 billion in Venezuelan assets around the world as the U.S. company fights for payment in return for the state's takeover of a huge oil project last year.

The company said it has received court orders in Britain, the Netherlands and the Netherlands Antilles each freezing up to $12 billion in assets of Venezuela state oil firm PDVSA. An Exxon spokeswoman said the total that could be frozen worldwide was $12 billion.

Exxon also won a court order from the U.S. District Court for the Southern District of New York in December freezing more than $300 million belonging to PDVSA, as Exxon argued it would have little chance to recoup its investment from PDVSA should it win its arbitration. . . .



Anonymous Anonymous said...

Hugo and Evo Morales are getting a real hard lesson in economics.

I recall when Peru expropriated several foriegn firms back in the 70s. The firms just went to pieces after the trained workers left and Peru was left with less than they started with.

Do communists and socialists never learn?

2/10/2008 8:42 PM  

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