Following the January 3 military intervention that deposed Venezuelan leader Nicolás Maduro, the Trump administration seized control of Venezuela’s oil exports. In the first four months of U.S. control, Venezuelan oil exports were estimated to be worth approximately $8 billion. These exports, totaling around 100 million barrels of oil, have flowed through a process characterized by a lack of transparency and minimal oversight. While the administration framed this control as beneficial to both countries, it has not publicly disclosed the exact amount of Venezuelan oil sold, the revenue collected, or how these funds have been utilized.
The U.S. initially deposited the proceeds from oil sales into an account in Qatar. Secretary of State Marco Rubio testified in January that $300 million had been disbursed to Venezuela through this Qatar account, with another $200 million still remaining. However, Secretary of Energy Chris Wright later stated that the full $500 million had been transferred to Venezuela and that future funds would be held in U.S. Treasury accounts. The move to Qatar was to protect the funds from Venezuela's numerous creditors, as Caracas faces tens of billions of dollars in claims.
Despite the substantial revenues generated, the Trump administration has not provided a public accounting of the Qatar account or the U.S. Treasury accounts, including details on expenditures or safeguards against corruption and money laundering. A State Department witness indicated in April that about $3 billion had been authorized for disbursement to Venezuela, but the remaining balance was unknown. Venezuelan state-owned oil company PDVSA has not published oil revenue figures since 2016, further contributing to the lack of transparency. Executive Order 14373 established Foreign Government Deposit Funds as Venezuelan government property held by the Treasury Department, with the Secretary of State providing disbursement instructions. Venezuela also seeks access to $5 billion in Special Drawing Rights at the International Monetary Fund, which the U.S. could condition on steps toward a democratic transition.
Energy Secretary Wright reported that revenue from Venezuelan oil sales has topped $1 billion, with agreements in place to sell another $5 billion over subsequent months. The primary recipients of Venezuelan oil since January 3 have been the United States (43%), India (26%), and Spain (8%). Overall, the U.S. administration's handling of Venezuelan oil revenues has been met with questions regarding transparency and legality from members of Congress, who have called for independent audits of these funds.
