War with Venezuela’s Lenders Looming

President Donald Trump has complained about Venezuela “stealing” American oil assets there, but he has also said it’s important that proceeds from the oil sales directly benefit Venezuela and prevent those with claims on Venezuelan oil revenue from accessing the money that the U.S. is now generating from those sales, Chris Isidore and Adam Cancryn reported for CNN.

The fact that Venezuela’s creditors could slow such payments would pose a problem for both the country and the Trump administration. (Photo: Wilfredor Wikimedia Commons) 

Trump recently issued an executive order stating that any attempts to place liens, garnishments, or other legal judgments on those funds are blocked.

The order said that if the funds were not free from such legal entanglements, it would “substantially interfere with our critical efforts to ensure economic and political stability in Venezuela.”

Placing the money into an account in Qatar — potentially out of the reach of Western businesses and creditors who claim they are owed money — is one way to achieve the administration’s goals.

The fact that Venezuela’s creditors could slow such payments would pose a problem for both the country and the Trump administration.

“It’s a really big problem. Venezuela owes money to everyone,” said one expert on foreign relations and Venezuela, who spoke on the condition of anonymity to speak freely.

The expert said that Qatar has long served as a facilitator between the United States and the Venezuelan government, even before the U.S. seizure of Venezuelan leader Nicolás Maduro opened up more direct communications between the two governments.