The Trump administration’s first sale of Venezuelan oil under a new arrangement is valued at $500 million, with much of that money being held in a U.S.-controlled bank account in Qatar, according to Semafor.
A senior administration told the news outlet that that Qatar was viewed as a neutral location where the funds could move freely and without risk of seizure. At least some of the funds are held in U.S. Treasury accounts, Semafor said.
A key element of the plan is a new financial structure intended to insulate oil revenue from litigation and creditor claims, according to the news outlet.
On Friday, President Donald Trump signed an executive order that detailed how the US intends to block courts or creditors from tapping proceeds from the oil sales. Venezuela owes international bondholders, oil companies, and other creditors as much as $170 billion, one reason U.S. firms have been reluctant to help rebuild the country’s infrastructure, Semafor reported.
“Treasury’s role will be making sure the funds get to the proper place,” said U.S. Treasury Secretary Scott Bessent last week, in comments cited by Semafor. “We’re the bankers here, we don’t direct the funds,” he said in the report.
The administration’s decision to house at least some proceeds in Qatar is already drawing sharp scrutiny from Democrats.
Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee, told Semafor there is “no basis in law” for a president to set up an offshore account he controls to sell assets seized by the US military, calling it a move “a corrupt politician would be attracted to.”
Former Biden White House international economics official Peter Harrell told Semafor it could make sense to park proceeds at private U.S. banks, but warned Treasury would be responsible for processing licenses through its Office of Foreign Assets Control, and that any bank involved would need the capacity to monitor for corruption risks in procurement and disbursement.
“This account is going to be a headache for whatever bank that takes it on,” Harrell told the news agency. “They’re going to be getting questions. They’re going to be getting letters from Congress, and if Democrats take control [of the House], there will probably be subpoenas.”
Read more at Semafor