Lack of trust stalls foreign investment in Venezuela

International companies are holding back from investing in Venezuela, despite recent reforms by the interim government aimed at attracting foreign capital. A lack of trust and insufficient legal guarantees continue to deter private investment, according to twelve sources familiar with negotiations between foreign firms and the Venezuelan government. Companies specializing in energy, oil, maritime transport, pharmaceuticals, and chemicals are expressing significant reservations about finalizing economic agreements with the Venezuelan state. "Legal certainty, at this moment, does not exist. There are still risks for companies; each one must decide whether to invest or not," stated one lawyer from a consultancy firm who requested anonymity for security reasons. The persistent electricity crisis in Venezuela is a major concern for potential investors. They also point to problems with potable water supply and the general deterioration of the country's infrastructure. "The challenges we currently face are due to both the laws and the logistics of doing business in Venezuela," said Jesse Cole, president of Sky Drop Capital. His company's representatives observed firsthand the conditions at the port in Guanta municipality, Puerto La Cruz, noting a lack of refrigeration, unstable power, water shortages, and unreliable heavy transport services. While the U.S. administration under Donald Trump has supported interim president Delcy Rodríguez's efforts to open the oil and mining sectors to foreign investment, doubts linger about the effective implementation of these reforms in practice.