The digital arms race between the United States and Russia appears to be accelerating, fueled in part by new comments by Russian President Vladimir Putin.

Putin, speaking to a group of Russian students Friday, called artificial intelligence “not only Russia’s future” but “the future of the whole of mankind.”

“The one who becomes the leader in this sphere will be the ruler of the world,” he said. “There are colossal opportunities and threats that are difficult to predict now.”

Digital domain

Top U.S. intelligence officials have been warning of a “perpetual contest” between the United States and Russia, with much of it playing out in the digital domain.

The Defense Intelligence Agency in particular has sought to maximize its ability to make use of artificial intelligence, or AI, reaching out to private industry and academia to help maintain the U.S. advantage.

Russia and China are seen as key competitors in the digital space and have been working on how to apply technologies, such as artificial intelligence and quantum computing, to their war-fighting doctrines.

“They’ve got their heads wrapped around the idea that 21st century warfare is as much cognitive as it is kinetic,” outgoing DIA Director Lt.  Gen. Vincent Stewart told a small group of reporters from VOA and other organizations last month.

Top officials, both in government and in the private sector, have long been willing to discuss the impact of artificial intelligence and other technological advances.

But some analysts see Putin’s willingness to address the issue publicly as telling.

“[It’s] rare that you have a head of state discussing these issues,” said Frank Cilluffo, director of the Center for Cyber and Homeland Security at George Washington University. “He is sending a message.”

And Cilluffo hopes the U.S. is paying attention.

“A big space race is on, and it’s a race we can’t afford to lose,” he said.

US maintains advantage

Many experts say the U.S. still maintains an advantage over Russia in artificial intelligence and quantum computing. Still, as Russia, China and other countries seek additional breakthroughs in how to apply such technology, the stakes are high.

“It completely changes the game of warfare,” said David Kennedy, who served with the U.S. National Security Agency and with the Marine Corps’ electronic warfare unit.

“It’s no longer going to be about who has the most bombs or who has the better bombs,” he said. “It’s going to be who can apply these principles to respond faster to fight a war and win a war.”

And Kennedy, now chief executive officer at TrustedSec, an information technology security consulting firm, sees Russia gaining.

“They explore all options, and they have a substantial budget for it,” he said, noting that Moscow may have an advantage in how to apply the technology since it is willing to sidestep privacy and ethical concerns that the U.S. and even China have tried to address.

China, too, is making significant gains. But unlike Russia, China has focused more on quantum computing, launching a quantum satellite into space last year.

Quantum computing uses a quirk of physics that allows subatomic particles to simultaneously exist in two different states. As a result, a computer is then able to skip through much of the elaborate mathematical computations necessary to solve complex problems.

It is seen as a potentially game-changing tool for intelligence agencies, enabling them to hack encrypted messages from their adversaries while their own communications would be “hackproof,” if the technology can be perfected.

“The Chinese have one of the most powerful quantum encryption capabilities in the world,” DIA’s Stewart cautioned last month. “Whoever wins this space wins the game.”
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From: MeNeedIt

When U.S. astronaut Peggy Whitson returns to Earth on Saturday from the International Space Station, she will have spent more time in space than any other American.

Whitson will have logged 665 days in space over three separate missions, the equivalent of about one year and 10 months outside the Earth’s atmosphere.

The world record belongs to Russian Astronaut Gennady Padalka, who spent 879 days in space.

Whitson is scheduled to return to Earth Saturday night in Kazakhstan in a Russian Soyuz capsule. She will then travel to Germany before heading home to Houston, which is still crippled from Hurricane Harvey.

Whitson said in an email to the Associated Press that her home was not damaged in the storm. However, she said the NASA Johnson Space Center in Houston was temporarily closed except for essential personnel, such as those staffing Mission Control for the space station mission.

“Any trepidations I might have about returning in the aftermath of a hurricane are entirely eclipsed by the all those folks keeping our mission going,” she said.

Whitson, a biochemist, began her third and latest mission on the International Space Station last November. During the mission, she performed a spacewalk and also become the first woman to command the space station twice.

She and the other crew members aboard the International Space Station also pursued hundreds of experiments in biology, biotechnology, physical science and Earth science.

At 57, Whitson is the oldest woman to have been in space.

The astronaut has said she is unsure whether this most recent space mission will be her last.

NASA had scheduled a news conference earlier this week with Whitson, to be filmed from the space station, but said it had to be rescheduled after she returns because of the impact of Hurricane Harvey in Houston.
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From: MeNeedIt

Comedian Shelley Berman, who won gold records and appeared on top television shows in the 1950s and 1960s delivering wry monologues about the annoyances of everyday life, has died. He was 92.

Berman died Friday at his home in Bell Canyon, California, from complications from Alzheimer’s disease, according to spokesman Glenn Schwartz.

Berman was a pioneer of a new brand of comedy that could evoke laughter from such matters as air travel discomforts and small children who answer the telephone. He helped pave the way for Bob Newhart, Woody Allen, Jerry Seinfeld and other standup comedians who fashioned their routines around the follies and frustrations of modern living.

Tributes came in Friday from Steve Martin, who tweeted that Berman “changed modern standup,” and Richard Lewis, who said there was “no better wordsmith.”

Late in his career, he played Nat David, father of Larry David, on HBO’s “Curb Your Enthusiasm.” With dialogue improvised by its cast, the comedy series gave Berman the opportunity to return to his improv roots and introduced him to a new generation of TV viewers.

“I’m not a standup comedian,” Berman often insisted. “I work on a stool.”

Comedy was not a childhood ambition for him. He trained as an actor, with the Goodman School of Drama in his native Chicago and with the prestigious actress-teacher Uta Hagen in New York.

“I had dreams of being an actor,” he said in a 1960 interview. “For 10 years I tried, picking up small jobs in summer stock and TV. I had a hard time of it.”

Nightclub routine

As a last resort, he put together a 20-minute routine and auditioned at the Chicago nightclub Mister Kelly’s. He was given a job, and then he had to scramble to write more material for a half-hour show.

“I was always one of those life-of-the-party boys,” he admitted, “though I never stooped to wearing women’s hats or lampshades. I was always making people laugh, in school and later in life.”

Berman’s success in Chicago led to a booking in Las Vegas. He bombed. The gamblers didn’t laugh, nor did they talk. Accustomed to slam-bang comics out of vaudeville and burlesque, they listened in amazement to the guy sitting on a stool and using big words with a routine that often consisted of one side of a make-believe phone call.

He continued on the saloon circuit, honing his craft and deciding on which direction to go. He didn’t fit any category. He wasn’t a joke teller nor a “sick” comedian. He figured he was a “humanist humorist.”

Berman made the first of many appearances on The Ed Sullivan Show in 1959. That year he issued his first album, Inside Shelley Berman. It won a gold record and received the first-ever Grammy Award for the spoken word. Two more albums achieved gold status.

Along with his busy schedule in nightclubs and auditoriums, he fulfilled his first ambition to be an actor. He appeared in a Broadway play, The Boys Against the Girls, in 1959 and a musical, A Family Affair, in 1962. His film debut came in 1964 with the adaptation of Gore Vidal’s hit political stage drama, The Best Man, starring Henry Fonda and Cliff Robertson.

“Not only an accomplished comedian, actor and author, Shelley was among the new breed of comedians who made a significant impact through recordings,” The Recording Academy said in a statement. “Shelley will be deeply missed, but the influence he exerted on our creative community will remain forever.”

Berman’s comedy career stalled in 1963. He was performing his act before an audience for a documentary-style NBC show, Comedian Backstage, when a telephone ringing interrupted him; it was the second night it happened. He stormed backstage and ranted at everyone in sight. His outburst, edited to make him appear temperamental, was included in the telecast.

Back to acting

“Once you’re known as being difficult, it becomes too hard to deal with management and even fellow artists,” he remarked in 1986. The bookings fell off, and Berman returned to acting, with little luck. He and his wife, Sarah, were forced to file for bankruptcy, and he began a long struggle to pay off his taxes and creditors.

He found work in television series such as The Twilight Zone, Rawhide and Peter Gunn and occasional movies including Divorce American Style. He became active in regional theater and also worked his old routines before college and lecture audiences.

For more than 20 years he taught comedy at the University of Southern California.

In recent years, he landed guest roles on series including The King of Queens, Boston Legal and CSI: NY, and appeared in the film Meet the Fockers.

He retired from performing in 2014 after being diagnosed with Alzheimer’s disease.

Sheldon Leonard Berman was born in Chicago and attended public schools. After training as an actor, he joined an improvisational company in Chicago, Compass Players, the beginning of the famed Second City. Watching his fellow performers, Mike Nichols and Elaine May, Berman said in 2000, “I learned more in two weeks than I did in four years at Goodman.”

He married in 1947, and he credited Sarah with helping him to survive through his jobless period while trying to be a comedian, the bankruptcy, the rebuilding of his career and the loss of their son, Joshua. They also had a daughter, Rachel, who, along with his wife, survives him.

Berman said of his marriage: “The love we have and the way it has grown, that’s what I’d like to be remembered for.”
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From: MeNeedIt

Although 75 percent of our planet is covered with water, many countries around the world suffer from a low supply of fresh water. There is plenty of water in the ocean, but removing the salt is very expensive, and only coastal nations with an ample supply of power, such as the Arab Gulf States, can afford to rely on desalination. Now, as sources of fresh water dwindle, emerging new technologies could make the technology much more cost effective. VOA’s George Putic reports.
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From: MeNeedIt

Aid groups have criticized efforts by European leaders to stem the flow of migrants from sub-Saharan Africa, arguing Europe’s economy needs more workers. One nongovernmental organization in Italy has been trying to fill the gap by training African migrants to work as beekeepers and then pairing them with local honey producers in need of employees. Ricci Shryock reports for VOA from Alessandria, Italy.
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From: MeNeedIt

Some energy, like solar and wind, is renewable. Other sources of power are recyclable. Faith Lapidus tells us how old tires and congealed fat are generating interest and energy.
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From: MeNeedIt

The French government said on Thursday it would cap unfair dismissal payouts and give companies more flexibility to adapt pay and working hours to market conditions in a labor reform France’s biggest union said was disappointing.

The reform, President Emmanuel Macron’s first major policy step since his election in May, is also the first big test of his plans to reform the euro zone’s second-biggest economy.

For decades governments of the left and right have tried to reform France’s strict labor rules, but have always diluted them in the face of street protests.

The government said in a document presenting the reform that it will make it possible to adapt work time, remuneration and workplace mobility to market conditions based on agreements reached by simplified majority between employers and workers.

Workers compensation for dismissal judged in a labor court to be unfair would be set at three months of wages for two-years in the company with the amount rising progressively depending on how long a worker was with the firm, unions said.

However, normal severance pay would be increased from 20 percent of wages for each year in a company to 25 percent, Liberation reported.

The government consulted with unions for weeks as it drafted the reform, and only the hardline CGT union, the country’s second biggest, said from the start that it would hold a protest, set for Sept. 12.

France’s biggest union, the reformist CFDT, said that it would not call a strike against the reform but described the reform as a missed opportunity to improve labor relations.

“CFDT disappointed,” the union’s leader Laurent Berger told reporters after a meeting with the government, but he added: “Taking to the streets is not the only mode of action for unions.”
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From: MeNeedIt

Mysterious black holes, thought to reside in the center of every galaxy, are difficult to study because even the closest one, in the center of our own Milky Way, is still some 27,000 light years away. But researchers at the University of Nottingham’s Quantum Gravity Laboratory have found that some of the physical phenomena linked to black holes can be studied in an ordinary bathtub. VOA’s George Putic has more.
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From: MeNeedIt

In the coming weeks, as Houston turns its attention to rebuilding areas devastated by Tropical Storm Harvey, people like Jay De Leon are likely to play an outsized role — if they stay around.

De Leon, 47, owns a small construction business in Houston, and he and his 10 employees do exactly the kind of demolition and refurbishing the city will need. But like a large number of construction workers in Texas, De Leon and most of his workers live in the United States illegally, and that could make things complicated.

The Pew Research Center estimated last year that 28 percent of Texas’s construction workforce is undocumented, while other studies have put the number as high as 50 percent. Construction employed 23 percent of working undocumented adults in Texas at the end of 2014, higher than any other sector, according to the Migration Policy Institute.

Undocumented immigrants nervous

However, undocumented immigrants are growing increasingly nervous in Texas because of an immigration crackdown by the Trump administration that has cast a wide net.

In addition, a new Texas law that would have taken effect later this week bars cities from embracing so-called sanctuary policies, where they offer safe harbor to illegal immigrants, and allows local police to inquire about a person’s immigration status. A federal judge Wednesday temporarily blocked most of the law from taking effect.

De Leon, who has lived in the country for 20 years and has two citizen children, says the changes have spooked the city’s migrant workforce. In recent weeks, he said, one of his employees left the state and another returned to Mexico. Both feared that if they stayed they risked arrest.

Departing workers, he says, pose a problem for Houston in the wake of Harvey, which has caused flood damage to commercial buildings, houses, roads and bridges expected to run into tens of billions of dollars.

“The situation that Houston is going through now with the hurricane is going to be the trial by fire for the Republicans and the governor that approved these radical laws,” De Leon said. “They will need our migrant labor to rebuild the city. I believe that without us it will be impossible.”

Undocumented workers perform a wide range of construction jobs, from framing and dry-walling to plumbing and wiring.

Shortage of U.S. trained workers

Stan Marek, chief executive of Marek Construction in Texas, said his company doesn’t hire undocumented immigrants and has long had difficulty finding enough trained U.S. workers.

“It’s a crisis,” Marek said. “We are looking at several thousand homes that have flood damage. There is no way the existing (legal) workforce can make a dent in it.”

Marek would like to see the federal government grant emergency work authorization for undocumented workers in the rebuilding effort, he said. Otherwise, those immigrants are likely to be hired by firms that do not pay payroll taxes or provide benefits like workers’ compensation and legally mandated overtime.

It isn’t yet possible to estimate how many construction jobs will be added in Texas as it rebuilds, but in the 12 months after Hurricane Katrina hit in 2005, Louisiana added 14,800 jobs in the sector, U.S. government data shows.

About 25 percent of the construction workers involved in the cleanup of New Orleans were undocumented, according to a study by researchers at Tulane and UC Berkeley universities. Those without papers were “especially at risk of exploitation,” the study found.

Worker exodus

The labor shortages are likely to grow worse, many builders warn. Earlier this year, a group of Hispanic contractors sent a letter to Texas Governor Greg Abbott warning that the pending ban on sanctuary city policies would make it “difficult to find and retain experienced workers.”

Javier Arrias, chairman of the Hispanic Contractors Association de Tejas and one of the letter’s signers, told Reuters that “many construction workers are already moving to other states.”

Abbott’s office did not respond to a request for comment about the role undocumented workers might play in the recovery.

Elizabeth Theiss, president of Houston-based anti-immigration group Stop the Magnet, sees another option besides looking to workers in the country illegally. She says the rebuilding effort should be used to help train U.S. veterans and other citizens who need jobs.

Theiss acknowledged that reconstruction might proceed more slowly, at least initially, if immigrants without work documents are not part of the effort, but she noted that rebuilding would be slow under any scenario.

Personal hardships

Whatever role undocumented people play in rebuilding Houston, they could face hardships rebuilding their own lives.

While the Federal Emergency Management Agency provides emergency food, water and medicine to anyone, regardless of immigration status, cash assistance and other longer term aid is only available to citizens and immigrants in households where at least one family member has legal status.

Immigrant advocates are launching private fundraising drives to help fill the void.

“It is deeply tragic and un-American that so many of those working men and women who will be rebuilding Houston and the rest of the state will be doing so while facing tragedy in their own lives,” said Jose Garza, executive director of the Workers Defense Project.

De Leon said his family was lucky and did not suffer flood damage. He is now busy rounding up supplies for immigrant families stuck at shelters who are afraid to seek out more help from authorities.

In the end, he says, President Donald Trump has to know “it’s going to be impossible to rebuild Houston without the labor force of immigrants. It is illogical, what he says with his words and what really has to happen.”
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From: MeNeedIt

The U.S. economy rebounded sharply in the spring, growing at the fastest pace in more than two years amid brisk consumer spending on autos and other goods.

The gross domestic product, the broadest measure of economic health, grew at an annual rate of 3 percent in the April-June quarter, the Commerce Department reported Wednesday. It was the best showing since a 3.2 percent gain in the first quarter of 2015.

The result is a healthy upward revision from the government’s initial estimate of 2.6 percent growth in the second quarter. The growth rate in the January-March quarter was a lackluster 1.2 percent.

Improvements in consumer spending, particularly on autos, and business investment powered second-quarter growth. Those revisions offset a bigger drag from spending by state and local governments.

This was the second of three estimates the government will provide for second quarter growth. Even with the upward revision, the weak start to the year means that growth over the past six months has averaged 2.1 percent, the same modest pace seen for the recovery that began in mid-2009.

During last year’s presidential campaign, Donald Trump attacked the Obama administration’s economic record, pledging to double GDP growth to 4 percent or better. His first budget, sent to Congress earlier this year, projects growth rates will climb to a sustained annual rate of 3 percent, a goal that many private economists believe is still too optimistic.

 The nonpartisan Congressional Budget Office sees growth averaging 1.9 percent over the next decade, a forecast much closer to estimates made by private economists.

Many economists had been forecasting growth in the current July-September quarter would be around 3 percent. Some are now saying that the devastation from Hurricane Harvey could shave about a half-percentage point off growth this quarter. However, analysts believe the pace of growth will bounce back once the rebuilding begins and oil refineries get back to full production, bringing down prices.

For the entire year, Mark Zandi, chief economist at Moody’s Analytics, is forecasting growth of 2.1 percent. That would mark an improvement over last year when the economy grew a meager 1.5 percent, the poorest showing since 2009 when GDP shrank by 2.9 percent.

Zandi is forecasting that growth in 2018 will be an even stronger 2.8 percent. But he said 0.4 percentage point of that forecast reflects an assumption that the Trump administration will win a tax cut package that will take effect in early 2018. The economy will also be boosted by higher spending on the military and infrastructure projects, he said.

“For the first time since the Great Recession ended in mid-2009, the economy is not facing any significant headwinds,” Zandi said.

 
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From: MeNeedIt

The U.S. is playing a World Cup qualifier in the New York metropolitan area for the first time, a critical match against Costa Rica on Friday night at Red Bull Arena in Harrison, New Jersey.

The Americans have played plenty of matches in and near the Big Apple, mostly in the CONCACAF Gold Cup and exhibition games. Until now, the closest to New York a qualifier has been played was in 1989, a 2-1 win over Guatemala at Veterans Stadium in New Britain, Connecticut.

“This was a pipe dream, this stadium in Harrison,” said goalkeeper Tim Howard, who played for the New York/New Jersey MetroStars when the team was based at Giants Stadium in East Rutherford. “For it to be there and to actually be playing games, you know, there’s no crowd like playing in front of your home crowd for me.”

Howard spoke Tuesday during a news conference in Manhattan, joined by coach Bruce Arena, captain Michael Bradley and teenage star midfielder Christian Pulisic.

After the U.S. opened the final round of the North and Central American and Caribbean region with losses to Mexico and Costa Rica, the U.S. Soccer Federation brought back Arena to replace coach Jurgen Klinsmann. The U.S. has recovered and is in third place with eight points, trailing Mexico (14) and Costa Rica (11). Panama (seven), Honduras (five) and Trinidad and Tobago (three) follow.

The top three nations qualify, and the fourth-place team advances to a playoff against Asia’s No. 5 nation.

Perhaps no one understands the role fan support can play in an outcome more than Arena, a member of the U.S. National Soccer Hall of Fame. The U.S. had a 16-year home unbeaten streak in qualifying going into a match against Honduras at RFK Stadium in Washington, D.C., on Sept. 1, 2001. The majority of the sellout crowd of 54,282 backed Honduras, which won 3-2.

“Only in America, I guess, we’re fighting for a home-field advantage,” Arena, who was born in Brooklyn and raised in Long Island, said at the time.

Costa Rica played a Gold Cup match at Harrison in July, but Arena expects a different crowd.

“We’re playing at home and I don’t care what anyone says. We have a home-field advantage,” Arena said. “My experiences in the short time that I’ve been here back with the U.S. team is that we have great support and I really believe that we’ll have great support on Friday, and hopefully the fact that Costa Rica played here in the Gold Cup is not going be a factor.”

At a venue with a 25,000 capacity that was built for Major League Soccer, the USSF and Red Bulls can control ticket allocation with pre-sales to Red Bulls season-ticket holders and national team regulars.

“We understand the challenges of playing at home versus going on the road in CONCACAF and we’re willing to do whatever it takes to make sure that in five or six weeks’ time we’ve punched our ticket to Russia,” Bradley said. “It’s on us to make sure that we can finish the job and allow ourselves the chance to look forward to playing at a World Cup next summer.”

The U.S. plays Honduras at San Pedro Sula on Sept. 5, and then closes the hexagonal against Panama on Oct. 6 at Orlando, Florida, and at Trinidad four days later.

“All the work that we’ve put in this year was for these next four games, to make sure that we can find the right ways in the biggest moments when the lights come on brightest to make sure that we get the job done,” Bradley said.

Reality check

U.S. players also have their minds on teammates and their families affected by Hurricane Harvey.

“I’ve heard DaMarcus (Beasley) speak of it. I haven’t yet had the chance yet to talk with Clint (Dempsey),” Arena said. “Hopefully his family’s safe. I know they’re in east Texas. I know it’s a tough week for them. I know for DaMarcus in particular it’s been very challenging. For him personally, for his friends and family ties to the Houston area. It’s difficult but all we can do is hope that the conditions improve in the Houston area and that everyone is safe.”

Added Bradley: “Some of the images and videos that have come out of Texas have been heartbreaking, and for all of us now as human beings, as fellow Americans, to find the right ways to show support and help that part of the country as they find the right ways to move on from this. That’s very important and obviously in our own very little way playing and representing the country in a really strong and proud way on Friday night is a little part of that.”
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From: MeNeedIt

U.S. sanctions on the finance boss of Venezuela’s oil company PDVSA have led to some exports to the United States being blocked as banks and investment funds refuse to provide letters of credit to potential buyers, three financial sources said.

U.S. businesses are barred from dealing with a sanctioned person or company and one of the sources said the sanctions on PDVSA’s Finance Vice President Simon Zerpa were deterring some businesses from investments with the company as so many of its transactions are linked to the finance department he leads.

A Venezuelan oil shipment to the United States was blocked this month as lenders refused to provide letters of credit to PDVSA customers, the sources said.

Letters of credit, issued by banks, guarantee to a seller that a buyer will pay a specified amount on time when a shipment is accepted. Without a letter of credit, shipments cannot be delivered and the shipper does not get paid. Blocking letters of credit for PDVSA oil chokes off cash that is desperately needed in the OPEC nation.

Petróleos de Venezuela, S.A., commonly known as PDVSA, is the financial motor of President Nicolas Maduro’s leftist government, and it is operating within one of the deepest economic recessions Venezuela has ever experienced and widespread political unrest.

In one instance, U.S. refiner PBF Energy was unable to get a letter of credit for a Venezuelan crude cargo to be received at a U.S. port.

The Suezmax tanker Karvounis has been anchored in the U.S. Gulf for more than a month. It partially discharged its cargo on Aug. 23 in New Orleans, according to Thomson Reuters vessel tracking data. A trader close to the deal said PBF Energy ultimately agreed to a prepayment, removing the need for a credit letter. It was unclear what would happen with the rest of the cargo.

Some U.S. customers can import without a letter of credit if they pay up front.

In July, the United States imposed sanctions on 13 senior Venezuelan officials, including the head of Venezuela’s army, the national police chief, the director of elections, and Zerpa.

At the time, a U.S. official warned that the administration of U.S. President Donald Trump was readying tougher measures that could be part of a “steady drumbeat” of responses to the Venezuelan crisis.

The most serious potential future step would be financial sanctions that would halt dollar payments for the country’ oil, starving the government of hard currency, or a total ban on oil imports to the United States, Venezuela’s biggest customer.

This month the United States imposed its first economic sanctions on Venezuela, banning debt trades for government-issued bonds and bonds issued by PDVSA. 

The problem could spread to more cargoes if banks refuse to extend credit to companies that have a commercial relationship with PDVSA, the sources said.

The sources said foreign oil companies funding projects in Venezuela and financial entities negotiating with PDVSA were avoiding signing agreements that could involve Zerpa.

Major oil company China National Petroleum Corporation (CNPC) has pulled back from funding some operations at its joint venture in Venezuela, a source at PDVSA said.

Neither PDVSA nor the Information Ministry responded to requests for comment. Zerpa was not immediately available to comment.

“PDVSA will face additional trouble just by keeping a sanctioned individual as CFO,” said Jorge Piedrahita, chief executive of broker-dealer Gear Capital Partners, who has been involved with Venezuelan debt for many years.

“Even the Russians and China’s Development Bank should be worried about signing something with him as they can be subject to collateral damage from sanctions just by association.”

A close Maduro ally, Zerpa, 34, rose to prominence by leading the bilateral Venezuela-China fund through which Caracas borrows from Beijing and repays loans in oil and fuel. Venezuela has borrowed over $60 billion from China, earning Zerpa the nickname “Zerpa the Chinese.”

Two additional financial sources said having Zerpa as the company’s head of finance had made it impossible for U.S. entities to assist PDVSA in debt refinancing, even before the U.S. economic sanctions.

Even basic activities, such as a conference call with bondholders, are now essentially unthinkable, the sources said.

Sanctions against Zerpa are having a knock-on effect on Wall Street, affecting imports of food and medicine to Venezuela made through funds headed by Zerpa, according to Delcy Rodriguez, president of Maduro’s new legislative assembly.

“This wasn’t done to affect Venezuelan officials but rather the entire population,” Rodriguez said on Monday.

Zerpa has held several high-profile posts including heading Venezuela’s state economic development bank Bandes and off-budget investment fund Fonden.

Opposition lawmakers have said he is an example of how the late Hugo Chavez’s “21st century socialism” has allowed unprepared political figures to wield power over financial deals.

“I have a negative opinion of him because of the way he handled the Chinese fund,” said opposition lawmaker Angel Alvarado, describing Zerpa as Maduro’s “finance tsar.”

U.S. pressure could force PDVSA to remove Zerpa from his post, at least on paper. However, PDVSA has had issues in the past that have led investors to tread cautiously with Venezuela.

“In part, the sanctions codify an already existing situation in which PDVSA and the Republic have little to no access to international financial markets due to the combination of political risk, unsustainable policies, concerns about legality

of new issues and reputational risk from providing funds to the Venezuelan government,” investment firm Torino Capital wrote in a report to clients after Friday’s sanctions.
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From: MeNeedIt