UK Holds Venezuelan Gold Amid Political Turmoil
Britain has made it clear that it will retain $1 billion in Venezuelan gold currently stored in a Bank of England vault, regardless of recent developments such as the arrest of Nicolas Maduro and the rise of interim leader Delcy Rodriguez.
In a statement to Parliament on January 5, Foreign Secretary Yvette Cooper indicated that the gold is unlikely to be released. She explained that the UK doesn’t recognize the current Venezuelan government.
“It’s vital to apply pressure on Venezuela for a democratic transition that reflects the people’s wishes,” Cooper noted. She added, “While the Bank of England has its independent protocols, our guiding principles involve stability and the push towards democracy.”
The Venezuelan gold, part of the country’s central bank reserves, has been effectively frozen since 2020 due to disputes over who has the rightful authority to access it. Lorna O’Connell, head of market analysis for EMEA and Asia, commented, “So, gold is here to stay.” She mentioned that this situation involves funds stuck in the Bank of England that Maduro has attempted to access.
According to O’Connell, Venezuela sold significant amounts of gold from 2012 to 2016 amid a deepening economic crisis. It seems the last major sale was around 85 tonnes in early 2016, with minor transactions reported since. The country hasn’t officially updated its gold reserves to the International Monetary Fund since mid-2018.
O’Connell shared that estimates suggest Venezuela’s net gold sales from 2022 onward add up to 179 tonnes. Maduro, under U.S. sanctions since April 2019, had previously filed a lawsuit against the Bank of England regarding the ownership of the gold. Initially, the UK High Court supported the Bank, but the Court of Appeal later reversed this decision, ultimately siding with Juan Guaido as the recognized president.
The valuation for the gold was approximately $1.95 billion in 2020. This stance means that the gold remains frozen in accordance with the UK government’s recognition policies. “This aligns with the One Voice Doctrine, which states if the UK government does not recognize a head of state, the courts must follow suit,” O’Connell explained.
In related developments, Swiss authorities have also frozen assets linked to Maduro and certain associates after his arrest by U.S. forces, though the total amount remains undisclosed. During Maduro’s leadership, Venezuela exported around 113 tonnes of gold valued at about $5.2 billion to Switzerland, according to Swiss customs records.
The situation remains fluid, and questions linger regarding the future of Venezuela’s gold reserves and how international actors will respond.
