“We’re the bankers here. We don’t direct the funds.”
The Trump administration confirmed Wednesday that the first $500 million in Venezuela oil proceeds has been deposited in a U.S.-controlled account in Qatar, describing the Gulf state as a “neutral location where money can flow freely without risk of seizure.”
The arrangement follows last week’s executive order giving the U.S. control over Venezuelan oil sales, with revenues eventually totaling an estimated $2 billion.
Why Qatar for Venezuela Oil?
Officials explained the Qatari account shields funds from creditors. Venezuela owes approximately $170 billion to international bondholders, oil companies, and other stakeholders—debts accumulated over two decades of defaults and expropriations.
“Venezuela has been isolated from international banking for years,” an administration official said on background. “As the administration moves quickly at President Trump’s direction, we are reviewing the existing legal parameters and restrictions.”
ConocoPhillips alone is owed over $10 billion from a 2019 arbitration ruling that Venezuela has never paid. When the company’s CEO raised this at a White House meeting last week, President Trump responded directly.
“We’re not going to look at what people lost in the past, because that was their fault,” the president told ConocoPhillips CEO Ryan Lance.
Treasury: ‘We’re the Bankers Here’
Treasury Secretary Scott Bessent offered clarity on the department’s role during remarks to the Economic Club of Minnesota.
“Treasury will oversee the accounts,” Bessent said. “Then, at the president’s direction and Secretary Rubio’s direction, we’ll be in charge of the disbursement that goes back into Venezuela.”
When pressed on specifics, Bessent added: “Treasury’s role will be making sure the funds get to the proper place. We’re the bankers here. We don’t direct the funds.”
A Treasury spokesperson declined to elaborate beyond stating the department is “fully committed to supporting President Trump’s efforts on behalf of the people of Venezuela.”
Creditors Face New Reality
The administration’s executive order explicitly blocks courts or creditors from accessing the oil revenue—a provision officials say is necessary to prevent “substantially interfering with critical efforts to ensure economic and political stability in Venezuela.”
One banking expert, speaking anonymously, predicted the arrangement would create complications.
“This account is going to be a headache for whatever bank takes it on,” he said. “They’re going to be getting questions. They’re going to be getting letters from Congress.”
Sen. Jack Reed of Rhode Island, the ranking Democrat on the Armed Services Committee, expressed broader concerns.
“I am innately suspicious,” Reed told reporters. “I would suspect that that Qatari bank probably also loans a lot of money to Japan.”
He did not elaborate.
Developing.
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