Secretary of State Marco Rubio told lawmakers Wednesday that Venezuela’s interim government has agreed to submit a monthly budget to the Trump administration in exchange for access to oil revenue held under US sanctions.
Rubio outlined the arrangement during testimony before the Senate Foreign Relations Committee, his first appearance before Congress since US forces captured Venezuelan leader Nicolas Maduro on Jan. 3. He said the administration is working with the government now led by Delcy Rodríguez to manage oil proceeds while Venezuela faces funding shortfalls, per the New York Times.
Under the plan, proceeds from Venezuelan oil sales will be released in stages after the interim government submits a budget to US officials. The funds will initially be held in an offshore account managed by Qatar before being transferred to a US Treasury account, Rubio said.
The Secretary of State said the administration has established what he described as a “very respectful and productive line of communication” with Rodríguez’s government. He told senators the US does not “intend or expect” to use military force against Venezuela.
In written remarks submitted to the committee, however, Rubio said the United States is “prepared to use force to ensure maximum cooperation” from the Rodríguez government “if other methods fail.”
Rubio said the funds are intended to support basic government operations. “They needed money in the immediacy to fund the police officers, the sanitation workers, the daily operations of government,” he said. He added that Venezuelan officials committed to using a substantial portion of the funds to purchase medicine and equipment from the United States.
The secretary said the structure was necessary because US sanctions prevent direct transfers and because creditors could otherwise attempt to seize the funds to satisfy claims tied to Venezuela’s past nationalization of US energy assets.
Democratic lawmakers raised questions about the arrangement. Sen. Brian Schatz of Hawaii said he was concerned about whether the administration has the legal authority to create and manage the account. Schatz also said lawmakers have not been provided with the written agreement Rubio referenced during his testimony.
Rubio responded that the Treasury Department could provide the documentation. Rubio declined to give a timeline for political changes within Venezuela. “It can’t take forever,” he said, adding that expectations for immediate outcomes are unrealistic.
Rubio outlined the arrangement during testimony before the Senate Foreign Relations Committee, his first appearance before Congress since US forces captured Venezuelan leader Nicolas Maduro on Jan. 3. He said the administration is working with the government now led by Delcy Rodríguez to manage oil proceeds while Venezuela faces funding shortfalls, per the New York Times.
Under the plan, proceeds from Venezuelan oil sales will be released in stages after the interim government submits a budget to US officials. The funds will initially be held in an offshore account managed by Qatar before being transferred to a US Treasury account, Rubio said.
The Secretary of State said the administration has established what he described as a “very respectful and productive line of communication” with Rodríguez’s government. He told senators the US does not “intend or expect” to use military force against Venezuela.
In written remarks submitted to the committee, however, Rubio said the United States is “prepared to use force to ensure maximum cooperation” from the Rodríguez government “if other methods fail.”
Rubio said the funds are intended to support basic government operations. “They needed money in the immediacy to fund the police officers, the sanitation workers, the daily operations of government,” he said. He added that Venezuelan officials committed to using a substantial portion of the funds to purchase medicine and equipment from the United States.
The secretary said the structure was necessary because US sanctions prevent direct transfers and because creditors could otherwise attempt to seize the funds to satisfy claims tied to Venezuela’s past nationalization of US energy assets.
Democratic lawmakers raised questions about the arrangement. Sen. Brian Schatz of Hawaii said he was concerned about whether the administration has the legal authority to create and manage the account. Schatz also said lawmakers have not been provided with the written agreement Rubio referenced during his testimony.
Rubio responded that the Treasury Department could provide the documentation. Rubio declined to give a timeline for political changes within Venezuela. “It can’t take forever,” he said, adding that expectations for immediate outcomes are unrealistic.
