Venezuela is seeking the release of an estimated US$4 billion worth of gold reserves held by the Bank of England to finance recovery efforts following last month’s devastating twin earthquakes, which claimed thousands of lives and inflicted severe economic damage.
Key Highlights
- Venezuela seeks release of gold reserves: The government is requesting the return of 31 tonnes of gold, valued at approximately US$4 billion, held by the Bank of England.
- Purpose of the funds: Venezuela says the gold is needed to finance reconstruction and recovery following devastating twin earthquakes that reportedly caused thousands of deaths and severe economic losses.
- Economic impact: The UNDP is cited as estimating the disaster caused damage equivalent to about 6% of Venezuela’s GDP.
- Gold remains frozen: The reserves have been inaccessible due to a long-running legal and political dispute after the UK refused to recognize Nicolás Maduro’s disputed 2018 presidential election victory.
- Political developments: The article claims Maduro was captured by U.S. forces and that Acting President Delcy Rodríguez is leading efforts to improve relations with Western governments while pursuing the release of the gold.
The Venezuelan government says the 31 tonnes of gold, deposited with the Bank of England in 2008, should be returned to help fund reconstruction after the disaster, which the United Nations Development Programme (UNDP) estimates caused economic losses equivalent to about 6% of the country’s Gross Domestic Product (GDP).
However, access to the gold remains blocked due to a long-running political and legal dispute between Venezuela and the United Kingdom.
The Bank of England froze the reserves after the UK, alongside the United States and several other countries, declined to recognise former President Nicolás Maduro as the legitimate winner of Venezuela’s disputed 2018 presidential election.
The situation has taken a new turn following Maduro’s capture by U.S. forces in January and his subsequent detention in New York.
Venezuela’s Acting President Delcy Rodríguez, who assumed leadership after Maduro’s removal, is now pursuing improved diplomatic relations with Western governments while pressing for the release of the country’s overseas gold reserves.
Rodríguez argues that the gold belongs to the Venezuelan people and should be used to support victims of the earthquakes and rebuild damaged infrastructure.
“That gold belongs to our people and should be used to address the terrible, tragic consequences of this double earthquake,” she said during a recent televised address, expressing confidence that Venezuela has the resources needed to recover if the assets are returned.
As part of her diplomatic efforts, Rodríguez has reportedly written to King Charles III requesting support for the release of the reserves, although constitutional convention prevents the British monarch from intervening in political or legal disputes.
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The UK government’s position remains uncertain. Shortly after Maduro’s removal from power, then Foreign Secretary Yvette Cooper said Britain still did not recognise Venezuela’s government, while stressing that decisions concerning the gold reserves rest independently with the Bank of England. Since then, the UK has appointed a new Prime Minister, Andy Burnham, and Ed Miliband has taken over as Foreign Secretary, leaving Britain’s future approach to the dispute unclear.
Meanwhile, Venezuela has secured a diplomatic breakthrough by restoring relations with the International Monetary Fund (IMF) after a seven-year freeze. The renewed relationship enabled the country to access US$346 million from its reserve resources to support immediate reconstruction efforts.
Despite that progress, the fate of the much larger gold reserve remains unresolved. Neither the Bank of England nor Venezuela’s Central Bank has publicly commented on the current status of discussions over the assets.
For now, the estimated US$4 billion in Venezuelan gold remains locked in the Bank of England’s vaults, even as Caracas argues the funds are urgently needed to support national recovery following one of the country’s worst natural disasters in recent history.
