President Donald Trump has signed an executive order blocking U.S. courts from seizing Venezuelan oil revenues held in American Treasury accounts.
The order, titled ‘Safeguarding Venezuelan Oil Revenue for the Good of the American and Venezuelan People,’ states that any court attempt to seize the funds would pose an ‘unusual and extraordinary threat’ to U.S. national security and foreign policy.
It also states that the funds remain the sovereign property of Venezuela and are not assets available to private creditors or judgment holders.
The order says the United States will hold the funds ‘solely in a custodial and governmental capacity,’ not as a commercial participant.
It was issued to prevent private creditors from using U.S. courts to seize the funds before the administration determines how they will be used.
The funds are held in U.S. Treasury accounts on behalf of Venezuela’s government and its state-run oil company, Petroleos de Venezuela, S.A., and are derived from oil sales and related transactions.
Trump signed the order on Friday, the same day that he met with nearly two dozen top oil and gas executives at the White House.
The president said American energy companies will invest $100 billion to rebuild Venezuela’s ‘rotting’ oil infrastructure and push production to record levels following the capture of Venezuelan dictator Nicolás Maduro.
The U.S. has moved aggressively to take control of Venezuela’s oil future following the collapse of the Maduro regime.
Trump has framed the effort as part of a broader push to reshape Venezuela’s oil industry following the collapse of the Maduro regime, with U.S. companies expected to play a central role.