President Donald Trump has signed an executive order to block courts or creditors from impounding revenue from Venezuelan oil sales, held in U.S. Treasury accounts, the White House announced on Saturday.
The emergency directive, issued on Friday, states these funds, held in foreign government deposit accounts, should be used in Venezuela to help create “peace, prosperity and stability.” This move follows the capture of Venezuelan leader Nicolas Maduro by U.S. forces in Caracas less than a week prior.
Several companies, including Exxon Mobil and ConocoPhillips, hold longstanding claims against the country. Both left Venezuela nearly 20 years ago after their assets were nationalized, and are still owed billions of dollars.
The order does not mention any specific company. It declares that the money is the sovereign property of Venezuela, held in U.S. custody for governmental and diplomatic purposes, and is not subject to private claims.
“President Trump is preventing the seizure of Venezuelan oil revenue that could undermine critical U.S. efforts to ensure economic and political stability in Venezuela,” the White House said in a fact sheet.
A U.S. agreement with Venezuela’s interim leaders would provide up to 50 million barrels of crude oil to the U.S., where numerous refineries are specially equipped to refine it.
Trump cited the 1977 International Emergency Economic Powers Act and the 1976 National Emergencies Act as a legal justification.
Trump signed the order the same day he met in Washington with executives from Exxon, Conoco, Chevron CVX.N and other oil companies as part of a bid to encourage them to invest $100 billion in Venezuela’s oil industry.
