Trump Declares National Emergency to Protect Venezuelan Funds in the US

National Emergency Declaration

Washington: President Donald Trump has announced a national emergency aimed at preventing courts and creditors from seizing Venezuelan government assets located in the United States.

This action is deemed crucial for safeguarding oil-related revenues, which are vital for US national security and foreign policy interests in the Western Hemisphere.

In an executive order signed on Friday and made public on Saturday, Trump stated that the "threat of attachment or other judicial processes" against Venezuelan government funds would "materially harm the national security and foreign policy of the United States."

He emphasized that such judicial actions could disrupt US efforts to foster "economic and political stability in Venezuela," warning that failure to act could jeopardize significant US goals, including curbing the influx of illegal immigration and the flow of illicit drugs, countering "malign actors like Iran and Hezbollah," and promoting "peace, prosperity, and stability for the Venezuelan people and the broader Western Hemisphere."

The executive order prohibits any legal actions such as attachments, judgments, liens, or garnishments against what it defines as "Foreign Government Deposit Funds," unless specifically authorized by the administration.

Any such legal proceedings are declared "prohibited and shall be deemed null and void."

The funds affected by this order include payments made to or held by the US government in designated Treasury accounts for the Venezuelan government or its agencies, including the Central Bank of Venezuela and the state oil company, Petroleos de Venezuela, S.A.

The order clarifies that these funds originate from the sale of natural resources or diluents sold to the Venezuelan government.

Trump asserted that these funds represent an unusual and extraordinary threat to US national security and foreign policy if subjected to judicial seizure, thus formally declaring a national emergency under US emergency powers law.

The executive order specifies that these funds are recognized as sovereign property of Venezuela, rather than assets belonging to private entities or judgment creditors.

It also clarifies that the US government holds these funds "solely in a custodial and governmental capacity, and not as a market participant."

The order restricts the funds from being transferred, exported, withdrawn, or utilized in any manner, except as allowed by future regulations or licenses issued by the administration.

It further states that the funds "have not been, and shall not be, used for any commercial activity in the United States."

According to the order, the funds will be retained pending "sovereign disposition for public, governmental, or diplomatic purposes" as determined by the US Secretary of State, Marco Rubio, on behalf of the Venezuelan government.

Trump instructed the Treasury Department to categorize the funds in a manner that clearly indicates their status as Venezuelan sovereign property held in US custody.

The Treasury is also directed to adhere to disbursement or transfer instructions set by the US Secretary of State and to consult with the Attorney General Pam Bondi and Energy Secretary Chris Wright.

The order empowers the Treasury and Justice Departments to assert sovereign immunity for the funds in any judicial or administrative proceedings, in accordance with US law.

It also states that placing the funds in US Treasury accounts does not waive Venezuela's sovereign immunity or consent to US court jurisdiction for enforcing private claims.

Trump noted that any court actions against these funds would disrupt US foreign relations and undermine the principles of international comity.