Trump moves to block courts from seizing Venezuelan oil revenue in US accounts

Summary

• Trump signed an order protecting Venezuelan oil revenue in US accounts. The oil revenues should promote "peace, prosperity and stability" in the Venezuela.
• The order prevents seizure of revenue, ensuring US efforts for Venezuelan stability. It cites the 1977 and 1976 Acts as legal justification.
• Trump met oil execs to encourage US$100 billion investment in Venezuela's oil industry. Exxon and ConocoPhillips are owed billions.

WASHINGTON - US President Donald Trump signed an executive order aimed at blocking courts or creditors from impounding revenue tied to the sale of Venezuelan oil held in US Treasury accounts, the White House said on Jan 10.

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 Jan 9, less than a week after US forces captured Venezuelan leader Nicolas Maduro
in Caracas.

Several companies have longstanding claims against the country. Exxon Mobil and ConocoPhillips, for example, left Venezuela nearly 20 years ago after their assets were nationalized. Both are still owed billions of dollars.

The order does not mention any specific company. It declares that the money is the sovereign property of Venezuela held in US custody for governmental and diplomatic purposes and is not subject to private claims.

“President Trump is preventing the seizure of Venezuelan oil revenue that could undermine critical US efforts to ensure economic and political stability in Venezuela,” the White House said in a fact sheet.

A US agreement with Venezuela’s interim leaders would provide up to the US, where numerous refineries are specially equipped to refine it.

Mr Trump cited the 1977 International Emergency Economic Powers Act and the 1976 National Emergencies Act as a legal justification.

Mr Trump signed the order the same day he met in Washington with executives from Exxon, Conoco, Chevron and other oil companies as part of a bid to encourage them to invest US$100 billion (S$128 billion) in Venezuela’s oil industry. REUTERS