Daijiworld Media Network - Washington
Washington, Jan 11: US President Donald Trump has invoked national emergency powers to prevent US courts and creditors from laying claim to Venezuelan government funds held in the United States, arguing that such actions would undermine American national security and foreign policy interests.
In an executive order signed Friday and made public Saturday, Trump said the risk of judicial seizure or other legal action against Venezuelan state deposits poses a direct threat to US strategic objectives, particularly those tied to energy security and regional stability in the Western Hemisphere.
The order asserts that allowing creditors to attach or garnish these funds would disrupt Washington’s efforts to support economic and political stability in Venezuela. Trump warned that failure to do so could jeopardize broader US priorities, including curbing illegal immigration, combating narcotics trafficking, countering the influence of groups such as Iran and Hezbollah, and promoting long-term peace and prosperity across the region.
Under the directive, all court judgments, liens, attachments, or similar legal actions targeting what the order classifies as “Foreign Government Deposit Funds” are prohibited unless explicitly authorized by the administration. Any such legal measures already taken are declared invalid.
The protected funds include payments made to or held by the US government in designated Treasury accounts on behalf of Venezuela and its state entities, notably the Central Bank of Venezuela and the national oil company, Petróleos de Venezuela, S.A. These assets are described as proceeds from the sale of natural resources or related materials to the Venezuelan government.
Trump stated that subjecting these funds to legal seizure would represent an “unusual and extraordinary threat” to US interests, prompting the formal declaration of a national emergency under federal law.
The executive order emphasizes that the assets remain the sovereign property of Venezuela, not the assets of private parties or judgment creditors. It also clarifies that the US government holds the funds strictly in a custodial role, not as a commercial participant.
The funds are barred from being transferred, withdrawn, exported, or otherwise used unless future regulations or licenses permit it. The order further specifies that the money has not been used—and will not be used—for commercial activity within the United States.
According to the directive, the funds will remain in custody pending a decision on their use for public, governmental, or diplomatic purposes. That determination will be made by Secretary of State Marco Rubio, acting on behalf of the Venezuelan government.
Trump instructed the Treasury Department to clearly designate the funds as Venezuelan sovereign assets held by the United States and to carry out any transfers or disbursements as directed by the Secretary of State, in consultation with Attorney General Pam Bondi and Energy Secretary Chris Wright.
The order also authorizes the Treasury and Justice Departments to assert sovereign immunity on behalf of the funds in any legal or administrative proceedings. It explicitly states that holding the assets in US Treasury accounts does not amount to a waiver of Venezuela’s sovereign immunity or consent to US court jurisdiction.
Trump concluded that any court action against the funds would interfere with US foreign relations and violate principles of international comity.