Trump signs order to ‘protect’ Venezuelan oil revenue, says seizure could undermine US efforts in country
Donald Trump has issued an executive order to protect Venezuelan oil revenue from judicial proceedings, adding that such seizures could “undermine critical US efforts to ensure economic and political stability in Venezuela.”
US President Donald Trump has issued a new executive order that claims to “protect” Venezuelan oil revenue from being seized for judicial proceedings, AP reported.
The order, made public on 9 January, states that the funds being seized for judicial proceedings could “undermine critical US efforts to ensure economic and political stability in Venezuela”, the report added.
What prompted the decision?
The decision comes after top oil company executives warned that instability in Venezuela could make it less attractive for private investment and rebuilding. “If we look at the commercial constructs and frameworks in place today in Venezuela, today it’s uninvestable,” Darren Woods, CEO of ExxonMobil, the largest US oil company, said during a meeting convened by the US president with oil executives on Friday (8 January).
During the session, Donald Trump tried to assuage the concerns of the oil companies and said the executives would be dealing directly with the US, rather than the Venezuelan government.
White House frames move as effort to “run” Venezuela in economic terms
Venezuela has a history of state asset seizures, ongoing US sanctions and decades of political uncertainty.
Getting U.S. oil companies to invest in Venezuela and help rebuild the country’s infrastructure is a top priority of the Trump administration after the dramatic capture of now-deposed leader Nicolás Maduro.
The White House is framing the effort to “run” Venezuela in economic terms, and Trump has seized tankers carrying Venezuelan oil, has said the U.S. is taking over the sales of 30 million to 50 million barrels of previously sanctioned Venezuelan crude, and plans to control sales worldwide indefinitely.
“I love the Venezuelan people, and am already making Venezuela rich and safe again,” Donald Trump, who is currently in southern Florida, wrote on his social media site on Saturday. “Congratulations and thank you to all of those people who are making this possible!!!”
What does the order state?
The order says the oil revenue is property of Venezuela that is being held by the United States for “governmental and diplomatic purposes” and not subject to private claims.
Its legal underpinnings are the National Emergencies Act and the International Emergency Economic Powers Act. Donald Trump, in the order, says the possibility that the oil revenues could be caught up in judicial proceedings constitutes an “unusual and extraordinary threat” to the US.
