Decree No. 2.367 of July 7, 2016 (the “Decree”), issued by the Presidency of the Bolivarian Republic of Venezuela, was published in Official Gazette No. 40.941 of July 11, 2016. Said Decree created the Gran Misión Abastecimiento Soberano (Sovereign Supply Great Mission) in order to drive, from the bases of the Popular Power and the civic-military union, the Agrifood Engine, the Medicine Production and Distribution Engine, and the engine of the industry of personal hygiene and home care cleaning products, corresponding to the Bolivarian Economic Agenda, with the purpose of improving the national productive system and the availability of the products associated with said engines, in an opportune and safe manner for the population.
The civic-military union involves using the operating capacity of the Fuerza Armada Nacional Bolivariana (“FANB”) (National Bolivarian Armed Forces) in all of the national territory, its organization and discipline, in activities and tasks that support the national supply of strategic products, in order to assure Venezuelans’ rights to nourishment and health, as well as protection and security of the goods and services intended for said activities, in which the FANB must actively participate.
The Decree establishes the creation of the Comando para el Abastecimiento Soberano (Command for Sovereign Supply - the “Command”) for the coordination and direction of the implementation and start of the Gran Misión Abastecimiento Soberano. The Command will act as the highest direction level with centralized commanding and planning unit. The Command is a Presidential Commission with an operating and directive character, without prejudice to its consulting and preceptive capacity in the matters relating to the national productive, industrial and distribution system of the products mentioned above.
The Command may impose on specific categories of entities of the productive and distribution chains the obligation to sell to specific companies or other State entities the necessary percentage of their production, with the requirements and conditions previously established through a Resolution or by Agreements, pursuant to the Law of Fair Prices.
A Special System for Articulated and Controlled Financing of the Gran Misión Abastecimiento Soberano is created, in order to consolidate resources and efforts in the primary and agri-industrial production of strategic products for national supply. Said System will be developed, with an exceptional and temporary character, by the Ministry of the Popular Power for Productive Agriculture and Lands, jointly with the Ministry of the Popular Power for Banking and Finance.
The Decree became effective upon its publication in the Official Gazette.
In order to access the Decree, please click here.
“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”