LatAm Governments Condemn Russian Aggression, Venezuela Backs Putin

Bloomberg Línea — Latin American governments have unanimously condemned Russia’s invasion of Ukraine, with the exception of Venezuela, with the government-majority National Assembly preparing an agreement to support Russia, the main ally of President Nicolás Maduro’s administration, and which would be a first formal pronouncement in favor of the military actions undertaken in Ukraine by Vladimir Putin, but which could also have implications for Venezuela.

On the region’s stock markets, Chile’s Ipsa index (IPSA) bucked the region’s downward trend, ending the day with a gain of 0.55%, while Argentina’s Merval (MERVAL) fell 2.89%, the second-sharpest setback it has registered so far this year.

Following is a roundup of Thursday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.

Argentina:

• After a somewhat ambivalent position on Tuesday, amid the first signs of Russia’s invasion of Ukraine, on Thursday,the Argentine Foreign Ministry adopted a tougher position and called on Russia to “cease military actions”. In the communiqué, it expressed “concern about the development of the situation in Ukraine”, and stated that “there is no military solution to this issue”. President Alberto Fernández wrote on Twitter this afternoon that: “I deeply regret the escalation of war that we know from the situation generated in Ukraine”. According to official accounts, there are 103 Argentines in Ukraine and the Argentine embassy is asking them to leave the country.

Brazil:

• The Moreira Salles family has initiated a corporate restructuring of its participation in ItaúUnibanco, the most valuable bank in Latin America.
• Brazil’s Chamber of Deputies approved, by 246 votes against 202, the basic text of the bill that legalizes gambling in the country at casinos, bingos, as well as horse and dog racing, and online games.
• In the midst of the escalation of tensions and the attack of Russian troops to Ukraine, Brazilian soccer players and their families are taking refuge in a hotel in the capital Kiev, totaling more than 20 people.

Chile:

• Although Chile does not have diplomatic offices in Ukraine, Foreign Minister Carolina Valdivia said the government is coordinating with embassies of the nearby Latin American nations of Brazil and Argentina, while the Chilean embassy in Poland, which borders Ukraine, is monitoring the situation, recommending its citizens to remain alert and always updated through local sources.

Colombia:

• Colombian President Iván Duque on Thursday rejected Russia’s attack against Ukraine, considering it a “threat to world peace” and said that the South American country will advocate for international coordination to provide humanitarian responses.
• This conflict has its pros and cons for the country, as it would mean more income for the nation due to higher crude oil prices.
• The geopolitical environment has led Bancolombia to revoke its planned bond offering.

Ecuador:

• President Guillermo Lasso said Thursday that his country condemns Russia’s decision to launch a military operation and violate Ukraine’s sovereignty and territorial integrity. Lasso added that the country will support the decisions taken by the United Nations Security Council that will allow peace to be restored.
• The country has a registry of more than 700 Ecuadorians residing in Ukraine and is working with the International Red Cross to get them out.

Guatemala:

• The Ministry of Foreign Affairs of Guatemala strongly condemned the unilateral recognition by the Russian Federation of the so-called separatist republics of Ukraine, which it considers an action that violates the principles of international law and the integrity of that country.

Mexico:

• The CEO of Citibanamex, Manuel Romo, revealed that there has been interest in Banamex from Mexican and foreign buyers, and announced that it will be towards the end of 2022, and probably the beginning of 2023, when the buyer will be announced and the sale agreement will be signed.
• One of the members of the Board of Banco de México considered voting this month for the sharpest rate increase in the country’s history, according to the minutes of the February 10 meeting.
• Russia’s military attack on Ukraine sent the price of crude oil soaring on international markets and broke the psychological barrier of $100 per barrel. This escalation could have multiple consequences, both good and bad, for Mexico’s economy.

Peru:

• The Peruvian Foreign Ministry expressed its “deep concern over the evolution of events in Ukraine” via a tweet, although it did not mention Russia in its message. However, it did reject the use of force.

Uruguay:

• Uruguayan President Luis Lacalle Pou rejected Russia’s invasion of Ukraine on Thursday, which has included missiles and air strikes. The head of state affirmed that “Uruguay is a country that always bets for peace” and questioned “actions contrary to international law”, and to the principles of the United Nations.

Venezuela:

• The government-majority National Assembly is preparing an agreement to support Russia, the main ally of President Nicolás Maduro’s administration, and which would be a first formal pronouncement in favor of the military actions undertaken in Ukraine by Vladimir Putin, and which could also have implications for Venezuela.

This is how the region’s markets closed on Thursday, February 24: