Standoff Threatened at Hilltop U.S. Embassy Complex in Venezuela

(Bloomberg) -- A standoff is developing at the U.S. Embassy in the Venezuelan capital after a top Socialist Party official threatened to shut off electricity to the complex amid a growing power dispute in the oil-rich nation.

Diosdado Cabello, the head of Venezuela’s Constituent Assembly, a politically omnipotent body stacked with supporters of President Nicolas Maduro, made the comments late Wednesday on his state television program. He also insinuated without proof that Juan Guaido, who is being backed by the U.S. and other regional neighbors as the legitimate president, was taking refuge at the Embassy.

“They say they don’t recognize Nicolas,” Cabello said. “OK. Maybe the electricity will go out in that neighborhood, or the gas won’t arrive. If there are no diplomatic relations, no problems.”

The friction over the hilltop embassy compound punctuated a dramatic week in what was once South America’s richest nation. Guaido, president of the opposition-dominated and powerless National Assembly, said that the nation’s constitution made him president in the absence of a legitimate chief executive. The U.S. publicly backed his claim and opposition supporters filled the streets in the biggest demonstrations since 2017.

Embassy Expelled

Maduro, a socialist autocrat presiding over a country ravaged by hunger and corruption, gave the embassy staff 72 hours to leave Venezuela in a speech on Wednesday. He warned that a coup was underway after Guaido made his proclamation and U.S. President Donald Trump swiftly declared his support for the 35-year-old politician.

Secretary of State Mike Pompeo responded to Maduro to say that they don’t recognize his authority and therefore won’t pull the staff from Caracas.

“We call on the Venezuelan military and security forces to continue protecting the welfare and well-being of all Venezuelan citizens, as well as U.S. and other foreign citizens in Venezuela,” Pompeo said Wednesday night. “The United States will take appropriate actions to hold accountable anyone who endangers the safety and security of our mission and its personnel.”

Click here to read a QuickTake about Venezuela’s economic collapse

The embassy sits atop a lush green hill in the privileged east of the city in the Valle Arriba neighborhood. It’s visible from many parts of Caracas, as is the enormous U.S. flag that flies in the wind in front. Beyond fences and security, the complex has multiple floors underground and could act as a bunker if needed.

Venezuela and the U.S. haven’t exchanged ambassadors since 2010. Last year, Maduro kicked out the top diplomats after the U.S. and dozens of other countries criticized his victory in the presidential election as a fraud. The U.S. charge d’affaires is James Story. Efforts to reach him were unsuccessful.

Thursday morning, traffic around the embassy was normal, and citizens jogged and walked their dogs nearby. Two staffers walked on the sidewalk down toward the entrance, with coffee in hands. Cars were queuing at the gate of the compound and five waited in a row before being searched by Embassy personnel.

U.S. diplomats sent out an alert to citizens living in Venezuela on Wednesday evening to say that citizen services would be available on Thursday but that all U.S. visa appointments had been canceled. The statement didn’t elaborate beyond Jan. 24 but noted that staff should stay close to the Valle Arriba neighborhood and avoid protests.

©2019 Bloomberg L.P.