PDVSA problems will have wider fallout in Venezuela

Significance

Forty-two people including officials, businessmen and judges have been arrested over the last fortnight. The arrests are concentrated around PDVSA and the heavy industrial complex Corporacion Venezolana de Guayana (CVG).

Impacts

• The Maduro government will parlay public outrage over the PDVSA scandal into a nationalist anti-corruption campaign.
• Having recently announced plans to run in the opposition presidential primary, Guaido will be hurt by claims of maladministration of Citgo.
• Venezuela is entering another cycle of political and economic downturn, underscoring the urgency of renewing stalled dialogue efforts.