White House: Proceeds from Venezuelan oil sales to be held in U.S. accounts… seizure, attachment barred

U.S. to control Venezuelan oil sales

Oil proceeds shielded from private claims

The Donald Trump administration has moved to block third parties from accessing funds generated from Venezuelan oil sales, so the U.S. can deploy the money as it sees fit.

The White House said on the 10th (local time) that President Trump signed an executive order declaring a national emergency to protect Venezuelan oil-sale proceeds deposited in U.S. Treasury Department accounts from seizure or legal proceedings.

The order stipulates that payments the U.S. receives from selling Venezuelan crude are protected from seizure, court orders, the enforcement of liens and other actions. It also requires that any withdrawals be made only with approval from the U.S. government.

The U.S. said it reached an agreement with the Venezuelan government that it would control Venezuela’s oil sales going forward, after it attacked Venezuela on the 3rd and detained President Nicolás Maduro.

Under the arrangement, the U.S. will take over crude that Venezuela cannot sell due to sanctions, sell it on international markets, and place the proceeds in Treasury accounts. The proceeds are to be used for the benefit of the people of the U.S. and Venezuela.

The White House said, “This executive order confirms that the funds constitute Venezuelan state assets managed by the United States for governance and diplomatic purposes,” adding that they are “not subject to private claims.”

The order specifies that “the United States does not own the funds, but administers them,” and that the U.S. Secretary of State will determine the purposes for which the funds are used on behalf of the Venezuelan government.

Kim Dae-young, Hankyung.com reporter kdy@hankyung.com