Nationalization of Assets
In recent years, there are increasing acts of blatant confiscation and nationalization of energy-sector assets. Needless to say, the energy sector has taken note and independents are staying out of markets such as Ecuador, Bolivia, and Venezuela. While Ecuador and Bolivia are smaller markets, Venezuela previously had considerable appeal. Over time, confiscation of assets and the takeover of whole industries will have a chilling effect on investment and growth. Venezuela is already witnessing a decline in investment as the energy sector grapples with electricity shortages and an aging infrastructure.
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