Venezuela has reached an agreement to transfer $4 billion (£2.9 billion) in gold from the Bank of England to the Federal Reserve Bank of New York. This agreement has been achieved after years of legal disputes.
Agreement between the government and the opposition
The government led by Delcy Rodríguez, the interim president of Venezuela, and the opposition reached a rare agreement in August to jointly work towards recovering 31 tons of gold that are locked in underground vaults in London.
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According to the terms of this agreement, the interim president will gain legal control over this gold, but will not have the ability to sell it immediately. One opposition figure involved in the ongoing negotiations stated: "This gold will be transferred to the United States, but Delcy will not have direct access to it. This process will be under supervision and restrictions."
Using gold as collateral
This reserve can be used as collateral for government loans, including for reconstruction after the twin earthquakes that devastated the South American country at the end of June last year, claiming the lives of over 6,000 people.
The World Bank had previously estimated that the damages from this natural disaster, the largest in recent decades, would reach $19.6 billion (£14.4 billion).
If this agreement is finalized, it will conclude a major dispute that has lasted nearly eight years. Britain has refused to recognize Nicolás Maduro as the legitimate president of Venezuela, claiming that the 2018 elections were fraudulent. In practice, this action blocked the Venezuelan government's access to the gold.
The gold then became the subject of a lengthy legal dispute in British courts, and despite Maduro's arrest by the United States in January, it has not yet been released.
The British Foreign Office stated that the government is not a party to this legal case, which determines who should have control over the reserve. The office added: "This matter is being examined through independent legal processes, and it is not a decision that the government can influence."
The transfer of this gold comes as Donald Trump is planning his first meeting with Rodríguez, which may take place soon. It is unclear whether this agreement will be discussed in that meeting.
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Source: independent.co.uk
