Trump declares emergency to shield Venezuelan oil revenue held in US accounts
US President Donald Trump has signed an executive order declaring a national emergency to protect Venezuelan oil revenues held in US-controlled accounts from legal seizure. The White House says the move is meant to preserve Washington's leverage over Venezuela's political and economic future. Officials argue that court claims or creditor actions could weaken US foreign policy objectives. The order follows a dramatic escalation in US actions targeting Venezuela's leadership.
New Delhi: US President Donald Trump on Saturday signed an executive order declaring a national emergency aimed at protecting Venezuelan oil revenues held in US Treasury-linked accounts from any form of legal seizure or judicial action, the White House said. The measure is intended to ensure that the funds remain under US control and are used to advance Washington’s foreign policy objectives toward Venezuela.
Blocking legal seizures
According to a White House fact sheet, the order blocks any "attachment, judgment, decree, lien, execution, garnishment, or other judicial process” against foreign government deposit funds. This protection specifically covers revenues generated from Venezuelan crude oil and related diluent sales that are currently held in US accounts.
The administration said the step was necessary to prevent legal claims by courts or creditors that could undermine US efforts to influence political and economic stability in Venezuela.
"President Trump is preventing the seizure of Venezuelan oil revenue that could undermine critical US efforts to ensure economic and political stability in Venezuela,” the fact sheet said.
Funds under US custody
The White House stressed that the oil revenues remain the sovereign property of Venezuela but are being held in US custody for governmental and diplomatic purposes. As such, the funds are not open to private or commercial claims unless explicitly authorised by the US government.
Officials argued that allowing judicial access to the funds could weaken US leverage and potentially allow adversarial actors to benefit from the resources.
Escalation after raids
The executive order comes a week after US forces carried out overnight raids in Venezuela, capturing President Nicolás Maduro and his wife. Washington described the operation as part of a broader campaign to counter what it called "narco-terrorism” originating from Caracas and affecting the United States.
In a separate statement, the White House said safeguarding the oil revenues was essential to protecting US objectives, including curbing illegal immigration and disrupting illicit narcotics networks.
Oil proceeds under US control
White House Press Secretary Karoline Leavitt said the proceeds from Venezuelan oil sales would be routed through US-controlled accounts.
"All proceeds from the sale of Venezuelan crude oil and products will first settle in US-controlled accounts at globally recognised banks,” she said, adding that "those funds will be dispersed for the benefit of the American people and the Venezuelan people at the discretion of the US government”.
President Trump described the arrangement as a strategic partnership. "In other words, Venezuela is committing to doing business with the United States of America as their principal partner — a wise choice, and a very good thing for the people of Venezuela, and the United States,” he said.
Concluding its statement, the White House said the order aligns with international law while advancing "America First” priorities, including stopping illegal immigration, blocking narcotics flows and countering hostile foreign influence in the region.