Venezuela president Hugo Chavez in a shocking move for foreign investors indicated for fresh efforts to assert greater control over Venezuelan economy by announcing plans to nationalize power and telecoms companies. Sending a chilling message to foreign investors Hugo Chavez clearly indicated his intention to transform country into a complete socialist state. The Venezuelan Presidents has announced this plan during his speech on the occasion of the swearing in of his new cabinet. Speaking on the occasion, he also expressed his desire to and foreign ownership of money-spinning oil refineries in the Orinoco region. Further, he also gave a call to end the current autonomy of the country’s central bank and he made his intention clear that he would ask the Venezuelan parliament to confer him additional power to legislate by presidential decree. It is now abundantly clear that the recent call for nationalization will affect Electricidad de Caracas, owned by US firm AES and CA Nacional Telefonos de Venezuela (CANTV), the largest telecommunication company of Venezuela. American corporations including Verizon Communications have considerably huge stakes in CANTV. These developments clearly mark a complete break with the past and running closely with Chavez’s drive to concentrate maximum power in his hands and the hands of his cabinet. Following these announcements, foreign investors are now seems to be panic stricken and particularly major petroleum companies such as Exxon Mobil, Chevron and BP who have high stakes in Venezuelan oil fields.