U.S. Says it has Returned $500-M in Oil Sale Proceeds to Venezuela

The United States has returned the full $500 million from the initial sale of Venezuelan oil to the Venezuelan government, a US official said, Steve Holland reported for Reuters.

The US' involvement in the oil sale was allegedly intended as a short-term measure to stabilize Venezuela, keep the government functioning, and prevent economic collapse. (Photo: Energy Analytics Institute) 

The final $200 million tranche has now been sent, the official said, speaking on condition of anonymity.

The arrangement followed a deal reached last month between Caracas and Washington after Venezuelan President Nicolás Maduro was captured in a US military operation on Jan. 3.

“Venezuela has officially received all $500 million from the first Venezuelan oil sale,” the official said, adding that the funds are to be “disbursed for the benefit of the Venezuelan people at the discretion of the US government.”

During testimony on Capitol Hill last week, Secretary of State Marco Rubio said US involvement in the oil sale was intended as a short-term measure to stabilize Venezuela, keep the government functioning, and prevent economic collapse.

“So, in essence, we allowed Venezuela to use its own oil to generate revenue to pay teachers, firefighters, and police officers, and to keep the functions of government operating so we didn’t have systemic collapse,” Rubio said.