Venezuela Talks Weigh Moving $4 Billion in Gold From UK to US

Venezuela's acting government and a faction of the opposition are closing in on an arrangement that would transfer roughly $4 billion in gold from the Bank of England to the United States, according to seven people familiar with the negotiations.

The talks, taking place in Caracas, involve members of the opposition-led legislature elected in 2015 and the acting administration headed by Delcy Rodriguez. Their aim is to reshape the country's political system and revive the economy through oil deals and a broad debt restructuring.

About 31 metric tons of Venezuelan gold have been held by the Bank of England for years. Britain has declined to release the bullion, citing its non-recognition of Nicolas Maduro, who was removed from power in a US raid on Caracas in January and now faces drug trafficking charges in New York.

Under the proposed plan, the unfrozen gold would be moved to the Federal Reserve Bank of New York, two sources close to the talks said, while another said the US Treasury would administer it. The arrangement would give the Rodriguez government legal control of the gold but would not allow it to sell the holdings immediately. Instead, the metal could serve as collateral for government borrowing, including for reconstruction after June's twin earthquakes.

As part of the negotiations, the opposition has already stepped back from a UK court dispute over the bullion. Lawyers for a parallel opposition-led central bank board withdrew from the case ahead of the latest round of talks in Caracas, according to two people close to the opposition.

The opposition has sought a transparency protocol, US oversight and a clear mechanism for approving the use of funds on a project-by-project basis, one source said. Britain's move this week to upgrade its diplomatic relationship with Caracas should speed up the process, the source added.

One source said the UK's upgraded relations could lead to recognition of the central bank board tied to the acting government. Another said the ad hoc opposition board, which operated for seven years, has been informed that its duties have ended.

The Bank of England said it cannot act on the gold until a court issues a further order on who holds legal authority over the account, adding that the parties must approach the UK court to settle the dispute. A British foreign office spokesperson said the government is not a party to the legal case and maintains its longstanding support for a democratic transition in Venezuela reflecting the will of its people, noting that UK courts and the Bank of England are independent of government.

The Venezuelan communications ministry, the opposition faction involved in the talks and the New York Fed did not immediately respond to requests for comment.

The Bank of England's refusal to release the gold dates to early 2019, when Britain joined dozens of nations in backing then opposition leader Juan Guaido after saying Maduro's 2018 election win had been rigged.

Since becoming acting president this year, Rodriguez, who is backed by US President Donald Trump, has asked King Charles to help secure the gold's release. Last month, her brother Jorge Rodriguez, head of the national assembly, said the country was working to recover the reserves for reconstruction.

The effort comes amid severe economic strain: Venezuela's inflation rate exceeded 530% in the 12 months to August, driven primarily by currency depreciation.