US President Donald Trump has issued an executive order to protect Venezuelan oil revenue held in US Treasury accounts, citing significant national security and foreign policy concerns.
By declaring a national emergency, the order effectively prevents these funds from being subject to any legal claims, attachments, or judicial processes.
Under the terms of the order, the funds remain recognised as sovereign assets of Venezuela and are held for governmental purposes.
The executive order specifies that no transactions involving these funds can occur without explicit authorisation.
The recent action takes precedence over any previous orders or blocks that might have allowed or regulated such transactions.
The administration stated that safeguarding these revenues is crucial to maintaining economic and political stability in Venezuela.
It also aims to combat illegal immigration and disrupt the flow of narcotics into the US, which aligns with broader US foreign policy objectives.
According to President Trump, the protection of the funds is essential to prevent the empowerment of hostile entities like Iran and Hezbollah, which could exploit such resources to destabilise the region further.
The preservation of these revenues is said to support US compliance with international obligations and diplomatic efforts.
The order lays out that these Venezuelan funds will not be subject to private claims and are held solely for public, governmental purposes.
It further clarifies that the funds will not be used for commercial activities within the US, establishing their custodial status under US governance.
To ensure adherence to the order, administrative measures have been implemented involving cooperation among several governmental departments including the Treasury and the State.
The measures include asserting sovereign immunity in any judicial proceedings related to these funds, reinforcing their protected status.
The executive order is a component of President Trump's broader strategy to address threats posed by the Maduro regime in Venezuela.
Notable actions include designating certain cartels as terrorist organisations and authorising military operations aimed at combatting drug trafficking from the region.
The US Government argues that retaining control over these oil revenues serves both US and Venezuelan interests by fostering stability and countering malign influences in the western hemisphere.
The move underscores a commitment to reestablishing deterrence and supporting diplomatic initiatives designed to enhance regional security and prosperity.
Overall, the executive order reflects a strategic approach to managing complex international relationships while prioritising national security objectives through careful regulation of foreign assets held within US borders.
Additionally, President Trump has called for a minimum of $100bn in oil industry investment in Venezuela but received a tepid response during a meeting at the White House. An executive noted that the South American country is currently "uninvestable".
Executives from major US oil companies who attended the meeting acknowledged that Venezuela, with its vast energy reserves, represents an attractive opportunity.
However, they indicated that substantial changes would be required to make the region appealing for investment. No significant financial commitments were made immediately.
Trump stated his intention to develop the South American nation’s oil sector following the capture of its leader, Nicolas Maduro, by US forces during a raid earlier this month in Caracas.
Earlier this month, reports indicated that President Trump was weighing a proposal to take control of Venezuela’s state-owned oil company, PDVSA, in an effort to push oil prices down to $50 per barrel.
Under the plan, which remains under review, the US would acquire and handle the sale of most of PDVSA’s oil output, a move that could significantly expand US leverage over Venezuela’s oil industry.
