Venezuela’s oil revenue, exceeding , $1 billion, is no longer being deposited in Qatar, but instead routed through the U.S. Treasury, marking a significant shift in how Washington manages the OPEC nation’s energy income. The move, confirmed by U.S. Energy Secretary Chris Wright, follows the Trump administration’s recent assumption of control over Venezuelan oil sales after the capture of former President Nicolás Maduro last month.
Initially, the first $500 million in oil sales revenue was channeled through a U.S.-controlled account in Qatar. Wright explained to NBC News that the Qatar arrangement was a temporary measure designed to protect the funds from potential legal claims by creditors. Venezuela faces substantial outstanding debts stemming from defaults on its sovereign debt and the nationalization of assets belonging to companies like Exxon Mobil and ConocoPhillips.
“Since Venezuela has so many creditors and they owe a lot of money, we had some risk if we put it into a U.S. Bank account set up quickly that creditors could freeze that money,” Wright said. “We want those creditors ultimately to get their money back, but that money urgently needs to get to Venezuela.”
The shift to a U.S. Treasury account addresses concerns raised by some Democrats in Congress regarding the transparency and legality of the Qatar arrangement. Senators Chuck Schumer and Adam Schiff have introduced legislation calling for an independent audit of the Qatar account by the Government Accountability Office, seeking greater scrutiny of the funds’ handling.
The U.S. Is navigating a complex political landscape in Venezuela, as it does not officially recognize the government led by interim President Delcy Rodríguez. President Trump initially recognized the 2015 opposition-led National Assembly in . This lack of formal recognition presents a legal challenge regarding the control of the oil revenue. Secretary of State Marco Rubio highlighted this issue to the Senate Foreign Relations Committee on , stating the need to “find some creative way legally” to meet the requirement of recognizing a government to deposit funds in the U.S.
According to Scott Anderson, an international law expert and former State Department official, the U.S.’s continued recognition of the 2015 National Assembly theoretically means the oil revenue deposited in the U.S. Should be under the control of that body. This raises questions about the ultimate disposition of the funds and which government the U.S. Will ultimately recognize.
The U.S. Has secured short-term agreements to sell another $5 billion of Venezuelan crude over the coming months, with the oil currently being shipped to refineries in the U.S. And Europe. The revenue generated from these sales is intended to provide much-needed economic relief to Venezuela, which has been grappling with a severe economic crisis for years.
Wright indicated that U.S. Government oversight of Venezuela’s domestic affairs would likely conclude once elections and a transition of power occur in the country, anticipating such a development during the current presidential term. “It is a question of a process to get there,” Wright said. “what the long-term political leadership in Venezuela is going to be, it’s going to be up to Venezuela.”
The move to direct Venezuelan oil revenue through the U.S. Treasury represents a significant step in the Trump administration’s strategy to stabilize Venezuela’s energy sector and prevent creditors from accessing funds intended for the Venezuelan people. However, the legal and political complexities surrounding the situation remain and the long-term implications of this policy shift are yet to be fully understood. The situation echoes past challenges faced by the U.S. In managing funds in Iraq, where tracking billions of dollars proved difficult, as highlighted by Politico, raising questions about the U.S.’s ability to effectively manage and oversee these funds.
The success of this new approach will depend on navigating the delicate balance between protecting creditor interests, providing economic relief to Venezuela, and ensuring the funds are used transparently and effectively.
