Trump declares emergency to shield Venezuelan oil funds

Washington: US President Donald Trump has declared a national emergency to block courts and creditors from seizing Venezuelan government funds held by the United States of America.

This is important to protect oil-related revenues, which is critical to US national security and foreign policy objectives in the Western Hemisphere.

In an executive order signed on Friday and released on Saturday, Trump said the “threat of attachment or the imposition of other judicial process” against Venezuelan government deposit funds would “materially harm the national security and foreign policy of the United States”.

He added that such actions would interfere with the US efforts to promote “economic and political stability in Venezuela”, warning that failure would jeopardise major US objectives, including “ending the dangerous influx of illegal immigrants and the flood of illicit narcotics”, countering “malign actors such as Iran and Hezbollah”, and bringing “peace, prosperity, and stability to the Venezuelan people and to the Western Hemisphere more generally”.

The executive order blocks any attachment, judgment, lien, garnishment or other judicial action against what it defines as “Foreign Government Deposit Funds”, unless specifically licensed or authorised by the administration.

Any such legal action, the order says, “is prohibited, and shall be deemed null and void.”

The funds covered by the order include money paid to or held by the US government in designated Treasury accounts on behalf of the Venezuelan government or its agencies, including the Central Bank of Venezuela and the state oil company Petroleos de Venezuela, S.A.

The order specifies that the funds are derived from the sale of natural resources or the sale of diluents to the Venezuelan government.

Trump said the funds “constitute an unusual and extraordinary threat to the national security and foreign policy of the United States” if subjected to judicial seizure, and formally declared a national emergency under US emergency powers law to address that threat.

The executive order makes clear that the funds are considered sovereign property of Venezuela, not assets of private parties or judgment creditors.

It also states that the US government holds the funds “solely in a custodial and governmental capacity, and not as a market participant”.

The order bars the funds from being transferred, exported, withdrawn or otherwise used, except as permitted by future regulations or licenses issued by the administration.

It also says the funds “have not been, and shall not be, used for any commercial activity in the United States”.

According to the order, the funds will be held pending “sovereign disposition for public, governmental, or diplomatic purposes” to be determined by the US Secretary of State Marco Rubio on behalf of the Venezuelan government.

Trump directed the Treasury Department to designate the funds in a way that clearly reflects their status as Venezuelan sovereign property held in US custody.

Treasury is also instructed to follow disbursement or transfer instructions determined by the US Secretary of State and to consult with the Attorney General Pam Bondi and the Energy Secretary Chris Wright.

The order authorises the Treasury Department and the Justice Department to assert sovereign immunity on behalf of the funds in any judicial or administrative proceeding, consistent with the US law.

It further says that placing the funds in US Treasury accounts does not constitute a waiver of Venezuela’s sovereign immunity or consent to the US court jurisdiction for enforcing private claims.

Trump said any court action against the funds would interfere with US Foreign Relations and undermine principles of international comity.

IANS