Trump Admin Funnels Venezuelan Oil Money to Qatar Bank, Sparking Outcry
Quick Summary
Following a U.S. military raid in Caracas that resulted in the abduction of President Nicolas Maduro, the Trump administration has begun selling Venezuelan oil and plans to store the proceeds in offshore bank accounts, with the main one located in Qatar. Administration officials defend the choice of Qatar as a neutral ground to manage the funds, which are being generated from the sale of up to 50 million barrels of oil, with an initial $500 million deal already closed. The plan, intended to return profits to Venezuela after the U.S. "runs" the country until new elections, has drawn sharp criticism from figures like Senator Elizabeth Warren, who called it a move a "corrupt politician" would make. To protect the revenue from Venezuela's estimated $170 billion in debt, Trump signed an executive order, positioning the Treasury Department as the "bankers" to oversee the accounts. Despite the White House hailing it as a historic deal, the administration faces significant pushback from oil companies like ExxonMobil, whose CEO labeled Venezuela "uninvestable," prompting a dismissive response from Trump, who threatened to exclude the company from the arrangement.
In a controversial move, the Trump administration is planning to store money from the sale of Venezuelan oil in a series of bank accounts, with the main one located in Qatar. Senior officials told...
In a controversial move, the Trump administration is planning to store money from the sale of Venezuelan oil in a series of bank accounts, with the main one located in Qatar. Senior officials told Semafor that the U.S. has already closed its first deal, selling off $500 million worth of the nation's oil.
Administration officials are defending the decision to use the Gulf state, calling it a neutral ground where the funds can be managed without risk of being seized. But the plan is already drawing sharp criticism.
"There is no basis in law for a president to set up an offshore account that he controls so that he can sell assets seized by the American military," said Senator Elizabeth Warren, the top Democrat on the Senate Finance Committee. "That is precisely a move that a corrupt politician would be attracted to."
This isn't the first time Trump's connections to Qatar have come under fire. He faced backlash last May after the country gifted him a $400 million Boeing jet.
The U.S. seized control of Venezuela's natural resources following a military raid in Caracas in the early hours of Saturday, January 3. The operation led to the abduction of then-president Nicolas Maduro and his wife, Cilia Flores, who were flown to New York to face federal drug trafficking charges. In a Manhattan courtroom, Maduro pleaded not guilty, insisting he is still the legitimate leader of Venezuela.
After the raid, President Trump and his top cabinet members announced that Washington would essentially "run" Venezuela until the country could hold free and fair elections. The plan involves managing and selling up to 50 million barrels of Venezuelan oil and returning the profits to Caracas.
To make this happen, the president signed an executive order last Friday to protect the oil revenue from being seized by courts or creditors. This was a critical step for Trump, as Venezuela owes an estimated $170 billion to bondholders, oil companies, and other international stakeholders. During a meeting with oil executives last week, Trump was blunt with ConocoPhillips CEO Ryan Lance, telling him the U.S. is "not going to look at what people lost in the past, because that was their fault."
Treasury Secretary Scott Bessent shed more light on the plan during a talk with the Economic Club of Minnesota. He explained that his department "will oversee the accounts" and, with guidance from Trump and Secretary of State Marco Rubio, "be in charge of the disbursement that goes back into Venezuela." He clarified the Treasury's position, stating, "We're the bankers here; we don't direct the funds."
White House spokesperson Taylor Rogers told The Independent, "President Trump brokered a historic energy deal with Venezuela, immediately following the arrest of narco-terrorist Nicolas Maduro, that will benefit the American and Venezuelan people." She added that the president's team is in "positive, ongoing discussions with oil companies that are ready and willing to make unprecedented investments to restore Venezuela’s oil infrastructure."
A Treasury spokesperson echoed this sentiment to Semafor, confirming, "The United States Treasury is fully committed to supporting President Trump’s efforts on behalf of the people of Venezuela."
Despite the official optimism, the administration is struggling to get oil companies on board. At the recent meeting, ExxonMobil CEO Darren Woods pushed back hard against Trump's plan. "We’ve had our assets seized there twice, and so you can imagine to re-enter a third time would require some pretty significant changes from what we’ve historically seen here," Woods said, referring to the nationalization of Venezuela's oil industry under Hugo Chavez between 2004 and 2007. "If we look at the legal and commercial constructs and frameworks in place today in Venezuela today, it’s uninvestable."
Trump was dismissive of the pushback. Speaking to reporters on Air Force One on Sunday, he said, "I’ll probably be inclined to keep Exxon out. I didn’t like their response. They’re playing too cute."