"So logically, why would they think anybody would give them a better deal than they already have. The Russians, South Africans or Ethiopians for that matter, are not going to improve on that deal. At least not in a substantial enough manner to make it worth completely destroying their credibility with foreign investors."

Hugo does not make decisions based on logic or plausibility. Like all demagogues he needs an "enemy of the state" to lampoon and an ideal to champion. He has chosen his brand of "socialism" as his ideal and therefore all he defines all capitalists, foreign companies, free enterprise or political opponents as the enemy.

As the country sinks into the morass that his policies are producing he needs to be able to deflect the blame onto the "enemy" and away from his own decisions. To do this the demagogue needs to control the media, the unions and mobilize a significant portion of the public grouped by ethnic origin, religious beliefs and/or eductional standards to support him and to "maintain the rage" directed at the "enemy". He must be seen to be attacking "the enemy" at all times, but he need a good supply so he drags out the game of bringing them down to maximise the effect.

Eventually like Castro before him, he will run out of "enemies" and will have to simply lock down the country into a kind of impoverished serfdom and rant about the "offshore devils" who are making conditions for "his" people so miserable.

We see the same game being played out in North Korea, Iran, Zimbabwe, etc. all with slightly different variations of the same theme.

Logic has nothing to do with it.... KRY, GRZ and the host of companies already "nationalised" are just collateral damage sacrificed to maintain Hugo's power and popularity regardless of the real consequences which he can easily hide by his control of the media, political opponents and unions.