M. AHMET KARABAY
I generally avoid writing outside of economics, politics, and history, but every major development seems to have economic roots, forcing me to delve into other topics. The recent elections in Venezuela, where Nicolas Maduro declared himself president again, have significant implications for Turkey.
Venezuelan dictator Nicolas Maduro proclaimed himself president after the July 28, 2024, elections, even before the vote count was completed, echoing the sentiment of “the horse has already crossed the Bosphorus!” Before the elections, Maduro had threatened, “If I lose, the country will turn into a bloodbath!” Since 2016, he has resorted to threats to secure results.
During the summer of 2016, when essential goods became scarce and millions took to the streets, Maduro threatened his people by referencing Erdoğan’s actions. Reminding them of the events in Turkey on July 15, he warned, “If the right-wing opposition attempts a coup, what I do will make Erdoğan’s actions look like child’s play!”
After this brief historical note, let’s return to the present. Maduro succeeded Hugo Chavez, who died of cancer in 2013, and controversially continued his rule with the 2018 elections.
Despite possessing the world’s largest oil reserves, surpassing even Saudi Arabia with 19.3% of global reserves, Venezuela’s people struggle with poverty, lacking access to even basic goods. Meanwhile, the country’s leadership lives in opulence. Maduro’s United Socialist Party of Venezuela, which has been in power for 25 years, has used the fear of capitalism’s exploitation to maintain control.
THE TURKISH CONNECTION IN GONZALEZ’S CAMPAIGN
Before the July 28 elections, polls showed the opposition candidate, Edmundo Gonzalez, leading by a wide margin. In an interview with Policy Analyst Imdat Öner at the Jack D. Gordon Institute in the U.S., Gonzalez was asked about relations with Turkey. Gonzalez stated that if elected, he would not maintain a special relationship with Tayyip Erdoğan like Maduro did, but instead, would aim for a more institutional and transparent relationship between the two countries.
After Maduro won the 2018 elections, President Tayyip Erdoğan quickly called to congratulate him. During a challenging period, Erdoğan sent a message to Maduro, saying, “Stand firm, my brother, we are with you.”
Turkey and Venezuela do not share a long history of relations; rather, it is more about the personal rapport between the two leaders. Due to the embargoes imposed as a result of Maduro’s defiant stance, Venezuela lost its ability to sell oil.
In response, Maduro began gold extraction activities in various regions of the country. Venezuela ranks fourth globally in gold reserves, with 2,236 tons. According to the BBC, around 300,000 people are searching for gold under very primitive conditions, often in areas controlled by gangs.
THE MYSTERIOUS GOLD TRADE WITH TURKEY
Ten years ago, Venezuela’s Central Bank held 380 tons of gold reserves, surpassing even the UK. Today, it has only 60 tons left. Reuters uncovered the mystery behind this depletion by investigating Turkish Airlines’ (THY) direct flights from Caracas to Istanbul, which began in 2016.
Despite being known for its meticulous route planning, THY insisted on operating this commercially unviable route. Reuters discovered that THY planes were transporting something other than passengers.
In 2017, gold trade between the two countries was nearly non-existent. However, after Erdoğan visited Caracas in August 2018, a “mysterious Turkish company” imported nearly $900 million worth of gold from Venezuela.
Venezuelan authorities sent semi-processed gold to Turkey for refining and used some of it to purchase basic goods like pasta and powdered milk.
AHLATLI HOLDING’S SURPRISING RISE
The company responsible for bringing Venezuela’s gold to Turkey was Ahlatlı Kuyumculuk Sanayi ve Ticaret A.Ş., a subsidiary of Ahlatlı Holding. Initially kept secret, the relationship was eventually conducted openly. In January 2019, Zaidan El Aissami Maddah, Maduro’s vice president for economic affairs, visited the Ahlatlı gold refinery in Çorum, where he was welcomed by Governor Osman Varol and Ahlatlı Holding Chairman Ahmet Ahlatlı. Anadolu Agency reported on this visit, describing it as a “golden bridge between Venezuela and Çorum.”
Following this trade, Ahlatlı Holding and Ahlatlı Kuyumculuk quickly climbed to 11th place on the Fortune 500 Turkey list. A significant portion of Venezuela’s gold is reportedly held in Turkey under the label “Maduro’s gold.”
WHY DID ERDOĞAN DELAY HIS CALL TO ‘BROTHER’ MADURO AFTER THE JULY 28 ELECTIONS?
In previous elections, Erdoğan was among the first to congratulate his friend Maduro. This time, he waited 10 days, calling on August 7. Moreover, the content of the Erdoğan-Maduro phone call was intriguing. Erdoğan’s delay in calling may have stemmed from uncertainty about Maduro’s hold on power. During the post-election turmoil, Erdoğan chose to remain silent. Once the Venezuelan military sided with Maduro, Erdoğan quickly picked up the phone.
Curiously, during the call, Erdoğan did not congratulate Maduro. This was overlooked by much of the Turkish media and misrepresented by Maduro’s media.
According to AA, Erdoğan discussed bilateral relations, regional and global issues with Maduro, expressing hopes that the Venezuelan elections would bring positive outcomes. Erdoğan also conveyed Turkey’s support for the dialogue process in Venezuela, wishing the Venezuelan people peace, prosperity, and well-being.
Despite Erdoğan’s careful language, pro-Maduro media, eager for a congratulatory message, reported as if one had been given. Agencia Venezuela News claimed, “Turkish President Recep Tayyip Erdoğan congratulated Nicolás Maduro on his election victory.”
It seems that Erdoğan has reservations about Maduro’s continued rule. Maduro likely senses this. Could it be that Maduro is concerned about the fate of his gold in Turkey, fearing it might share the same fate as Gaddafi’s gold?
