Impact of changes in economic pressures on the activities of foreign oil and gas companies in Venezuela

Cover Page

Cite item


The article discusses several new laws in the oil and gas sector of Venezuela, which appeared at the beginning of the 21st century. It also presents the tax regimes in this area of the country and the types of tax and economic burdens that apply to these regimes; highlights the main problematic aspects of changes in tax legislation and the consequences on the activities of foreign companies and the development of the oil and gas sector of the country as a result of such changes. It is concluded that the increase in state revenues not solve the problem of attracting investments in the oil and gas sector of the country, and only scare off a large company in the future (Exxon Mobil and ConocoPhillips have left the Venezuelan market), resulting in a fall in production at the country, its government revenues, and then slowing down economic growth in the country. As an alternative approach to improving state regulation and the conduct of the oil business in the country, the options for improving this situation are presented: to increase the share of foreign companies in strategic partnerships; review the tax system for oil companies; allow some programs to be implemented directly by foreign companies; and propose new distribution and profitability schemes that will adapt to the current international hydrocarbon market.

About the authors

Elmira A. Chadaeva

Peoples’ Friendship University of Russia (RUDN University)

Author for correspondence.

postgraduate student, Department of Ibero-American Studies

6 Miklukho-Maklaya St, Moscow, 117198, Russian Federation

Elvis Ojeda Kalluni

Peoples’ Friendship University of Russia (RUDN University)


Cand. Econ. Sci. (PhD), Associate Professor, Department of Ibero-American Studies

6 Miklukho-Maklaya St, Moscow, 117198, Russian Federation


  1. Aidrous, I.A.Z. (2017). Development of the petrochemical industry of the Kingdom of Bahrain. RUDN Journal of Economics, 25(3), 367–380. (In Russ.)
  2. Alekséenko, O.A. (2019). Venezuela: Prueba por la crisis. Iberoamerica, (2), 57–83. (In Spanish.)
  3. Astákhov, E.M. (2019). Lecciones de la crisis venezolana. Iberoamerica, (2), 84–103. (In Spanish.)
  4. Brewer Carías, A.R. (2004). La Constitucion de 1999, Derecho Constitucional Venezolano (p. 1192). Caracas, Editorial Juridica Venezolana. (In Spanish.)
  5. Chadaeva, E.A. (2020). Regulatory framework for attracting foreign investment in Venezuela's oil and gas sector. RUDN Journal of Economics, 28(2), 402–413. (In Russ.)
  6. Kholodkov, N.N. (2018). América Latina: Problemas de recuperación económica. Ibero-america, (3), 33–56. (In Spanish.)
  7. Lukjanchokov, N.N. (2004). Natural rent and environmental protection. Moscow, UNITI Publ. (In Russ.)
  8. Lvov, D.S. (1999). The path to the XXI century: Strategic problems and prospects of the Russian economy. Moscow, Ekonomika Publ. (In Russ.)
  9. Monaldi, F. (2015). Latin America’s oil and gas. After the boom, a new liberalization cycle? Harvard Review of Latin America. Energy Oil, Gas and Beyond (pp. 2–7). Cambridge.
  10. Mortimore, M. (2009). Arbitraje internacional basado en Clausulas de solucion de controversias entre los inversionistas y el Estado en acuerdos internacionales de inversion: Desafios para America Latina y el Caribe (p. 86). Santiago de Chile, CEPAL. (In Spanish.)
  11. Ojeda Kalluni, E., & Chadaeva, E.A. (2018). Mexico’s energy reform: Experience and lessons of the energy sector transformation in South America. RUDN Journal of Economics, 26(4), 609–619. (In Russ.)
  12. Rodríguez, P. (2006). Petróleo en Venezuela, ayer, hoy y mañana: Cinco décadas de historia (p. 238). Caracas, Libros de El Nacional. (In Spanish.)
  13. Vinogradova, A.V. (2011). Foreign experience in regulating rental relations in the oil and gas industry and the possibility of its use in the Russian economy. Economic Analisis: Theory and Practice, 46(253), 58–67. (In Russ.)
  14. Yakovlev, P.P. (2019). World oil market: The role of Latin American countries. Russian Foreign Economic, (9), 110–124. (In Russ.)

Copyright (c) 2021 Chadaeva E.A., Ojeda Kalluni E.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

This website uses cookies

You consent to our cookies if you continue to use our website.

About Cookies