U.S. President Donald Trump has taken a significant step to protect Venezuelan oil revenue held in U.S. Treasury accounts by signing an executive order on Friday. This move comes amidst heightened tensions and recent developments in Venezuela.
Trump Signs Executive Order
Trump signed an executive order to prevent courts from seizing Venezuelan oil revenue, as reported by CNBC. The order underscores that these funds are “held solely for sovereign purposes” and any legal claims on them would “materially harm the national security and foreign policy” of the U.S.
The funds are deemed sovereign property of Venezuela, reserved for governmental and diplomatic purposes, and are not subject to private claims.
The executive order follows the capture of Venezuelan leader Nicolás Maduro and his wife, Cilia Flores, in Caracas by U.S. forces. Both have been indicted on drug-trafficking charges and have pleaded not guilty.
US, Venezuela Working On Rebuilding Oil Infra
Post-operation, Trump announced that the U.S. and Venezuela are working on rebuilding the country’s oil and gas infrastructure, with American oil companies expected to invest over $100 billion in Venezuela. Trump met with major oil industry executives, including ExxonMobil CEO Darren Woods, who expressed concerns about investing in Venezuela. Chevron is currently the only major U.S. oil company operating in Venezuela under a special license.
The executive order cites the 1977 International Emergency Economic Powers Act and the 1976 National Emergencies Act as legal grounds for protecting Venezuelan oil revenue in U.S. accounts.
Export Restrictions
The capture of Maduro has sparked discussions about Venezuelan oil’s potential return to global markets. According to Jeff Krimmel, a strategy expert, the U.S. might impose export restrictions, using Venezuelan oil as a political tool.
Meanwhile, Trump has stated that American oversight in Venezuela could last for years, as reported by Reuters. The U.S. Senate has voted to limit Trump’s military actions in Venezuela, although the measure faces a likely veto.
Trump has also urged U.S. oil giants to invest $100 billion in Venezuela’s petroleum sector, as highlighted in a recent meeting with industry leaders. This investment is seen as crucial for rebuilding Venezuela’s energy infrastructure and boosting oil production.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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