US President Donald Trump has declared a national emergency to prevent courts and creditors from seizing Venezuelan government funds held in the United States. This move aims to safeguard oil-related revenues crucial for US national security and foreign policy interests in the Western Hemisphere.
In an executive order signed recently, Trump highlighted the importance of shielding Venezuelan government deposit funds from any judicial actions that could harm national security and foreign policy objectives. The order prohibits any attachment, judgment, lien, garnishment, or other legal actions against the defined “Foreign Government Deposit Funds” without specific authorization from the administration.
The executive order specifies that the protected funds, held in designated Treasury accounts on behalf of the Venezuelan government or its agencies, include money derived from the sale of natural resources or diluents to Venezuela. Trump emphasized that these funds are considered sovereign property of Venezuela and not assets of private entities or creditors.
The order further restricts the use of these funds, barring their transfer, export, withdrawal, or any commercial activity in the US without future regulatory permissions. It also entrusts the US Secretary of State with determining the funds’ sovereign disposition for public, governmental, or diplomatic purposes on behalf of Venezuela.
Trump directed the Treasury Department to designate the funds clearly as Venezuelan sovereign property held in US custody. Additionally, the order authorizes the Treasury and Justice Departments to assert sovereign immunity for the funds in legal proceedings, ensuring compliance with US laws and international principles.
