Following the Jan. 3 arrest of Venezuelan President Nicolás Maduro by U.S. military forces, President Donald Trump made the announcement that the United States would take control of Venezuela's oil industry.
Three days after Maduro's capture and with Delcy Rodríguez serving as Venezuela's interim president, Trump said the Venezuelan government had agreed to deliver between 30 million and 50 million barrels of oil to the United States. He added that the crude would be sold at market prices and that proceeds would be used to benefit the Venezuelan people.
According to a BBC World investigation, U.S. authorities announced on Jan. 14 that the first sale of Venezuelan crude had generated $500 million, but contrary to Trump's comments, the revenue has remained under U.S. control.
Venezuelan economist and consultant Asdrúbal Oliveros told BBC World that the money is being held in an account the Central Bank of Venezuela maintains at JPMorgan in the United States, from where it is transferred to an account in Qatar acting as a sort of trust between the U.S. and the Venezuelan government.
"From there, the money is distributed to Venezuelan banks for dollar sales in the exchange market or to cover the country's needs, with prior approval from the U.S. and the trust," he said.
That version was supported by Secretary of State Marco Rubio, who during a recent hearing told the Senate that the funds are in an account owned by Venezuela but blocked under U.S. sanctions.
Rubio said the transfer to Qatar was intended to address a legal issue stemming from the fact that the United States does not recognize the Venezuelan government as legitimate and to prevent Venezuela's creditors from seizing the funds to satisfy debts.
"If any of those funds touched a U.S. bank, even in an account in the Venezuelans' name, they would immediately be seized by creditors who would seek payment," Rubio explained. "In the short term, that would prevent Venezuelan authorities from receiving the funds they need to operate."
As noted by the report, so far the funds are being allocated through auctions held by the Central Bank of Venezuela, and both companies and individuals can participate through four Venezuelan banks. The interested parties must submit the required documentation, state how many dollars they need and indicate the price they are willing to pay, sources in the Venezuelan banking sector told BBC World.
According to economist Alejandro Grisanti, director of the consultancy Ecoanalítica, about 80% of the funds have been reserved for priority sectors like food and medicine, 15% for other productive sectors and 5% for individuals.
But economists and experts say the lack of transparency remains one of the biggest concerns surrounding the agreements between the Trump administration and the interim government of Delcy Rodríguez.
"We do not know clearly who approves the distribution of the funds, what criteria are used to ensure the money is actually spent on food, fuel or salaries, and how much oversight or accountability exists to make sure the funds are disbursed as intended," David L. Goldwyn, president of consulting firm Goldwyn Global Strategies, told BBC World.
Despite uncertainty about how long this system will last and how the proceeds will ultimately be distributed, Oliveros said the mechanisms represent progress compared with the situation before Maduro's arrest, when Venezuela struggled to sell crude because of sanctions. He also said they have helped curb corruption by imposing controls on how the Venezuelan government uses the resources.
"The outlook now is for greater exchange rate stability, a reduction in inflation, which is quite troubling at this moment, and of course, it also affects growth dynamics," he said. "This could help bring more stability and allow the private sector to operate in better conditions. If that money also leads to improvements in key services like electricity and infrastructure, it will boost growth. So the midterm outlook is positive."
Originally published on Latin Times
© 2025 Latin Times. All rights reserved. Do not reproduce without permission.
