Venezuela’s government, opposition may cooperate to safeguard US assets

Venezuela’s government and its political opposition are seeking to coordinate their legal defence of the oil-rich country’s United States assets, after Washington’s official recognition of ‌interim president Delcy Rodriguez raised questions about who could represent the country in US courts.

Lawyers for Rodriguez’s government and the opposition asked Manhattan-based US Magistrate Judge Sarah Netburn on Monday to pause for 45 days a case in which creditors are seeking to seize funds linked to state oil company Petroleos de Venezuela while they determined ⁠who would represent Venezuela’s interests.

The letter signalled potential cooperation between the opposition and Rodriguez’s government in ‌the safeguarding of US assets including Houston-based oil refiner Citgo Petroleum from creditors, including holders of debt issued by PDVSA and Venezuela’s government, companies ‌whose Venezuelan assets were expropriated, and victims of acts of alleged terrorism.

Venezuela’s information ministry, ⁠which handles media requests ⁠on the government’s behalf, did not immediately respond to a request for comment.

Relations between the opposition and ‌Venezuela’s socialist government have long been acrimonious. The opposition has controlled US assets including Citgo since 2019, when Washington first imposed ‌sanctions on ‌PDVSA in a bid to pressure now-imprisoned president Nicolas Maduro to leave office.

Washington in ‌March recognised Rodriguez as Venezuela’s leader, following the capture of Maduro by US forces. ⁠She is now preparing to take over the boards of PDVSA’s US subsidiaries including Citgo, Reuters ⁠reported on April 1, citing four people close to the preparations.