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Donald Trump Signs Executive Order Protecting Venezuela's Oil Revenue Held In US Accounts
Donald Trump Signs Executive Order Protecting Venezuela's Oil Revenue Held In US Accounts
US President Donald Trump on Saturday took another step to control future sales of Venezuelan oil by signing an executive order meant to declare a national emergency and safeguard Venezuelan oil revenue held in US accounts.
The executive order signed by Trump on Saturday effectively blocks the oil revenue from the Latin American country's creditors and prevents its seizure to satisfy debts or other legal claims, according to a White House fact sheet. The goal is to ensure “these funds are preserved to advance US foreign policy objectives".
The emergency order said the revenue, held in foreign government deposit funds, should be used in Venezuela to help create “peace, prosperity and stability." The order was signed on Friday, less than a week after US forces captured Venezuelan leader Nicolas Maduro in Caracas.
Several companies have longstanding claims against the country, such as Exxon Mobil and ConocoPhillips, which left Venezuela nearly 20 years ago after their assets were nationalised under the Maduro regime. Both companies are still owed billions of dollars, according to Reuters.
What Does The Order Entail?
In its fact sheet, the White House said the executive order signed by Trump blocks any attachment, judgment, decree, lien, execution, garnishment, or other judicial process against Foreign Government Deposit Funds, which refers to the Venezuelan oil revenues and diluent sales held in US Treasury accounts.
The Order prohibits transfers or dealings in these funds except as authorised, superseding any prior Orders that might block or regulate them. It also says that the funds are sovereign property of Venezuela held in US custody for governmental and diplomatic purposes, not subject to private claims.
The Trump administration seeks to prevent the seizure of Venezuelan oil revenue that could undermine critical US efforts to ensure economic and political stability in Venezuela, according to the White House. It says that allowing attachment of these funds would directly jeopardise US objectives of halting illegal immigration and drug trafficking.
Trump cited the 1977 International Emergency Economic Powers Act and the 1976 National Emergencies Act as a legal justification. A US agreement with Venezuela's interim leaders would provide up to 50 million barrels of crude oil to Washington, where numerous refineries are specially equipped to refine it.
The order was signed on the same day Trump met with executives from Exxon, Conoco, Chevron and other oil companies in Washington to encourage them to invest $100 billion in the Venezuelan oil industry.
Source: News18
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