HomeAmericaVenezuela's government, opposition may cooperate to safeguardĀ US assets

Venezuela’s government, opposition may cooperate to safeguardĀ US assets

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By Luc Cohen

NEW YORK, ā€ŒApril 6 (Reuters) - Venezuela's government and its political opposition are seeking ​to coordinate their legal defense of the oil-rich country's United States assets, after Washington's official recognition ⁠of interim President Delcy Rodriguez raised questions about who could represent the country in U.S. courts.Ā 

Lawyers for Rodriguez's government and the opposition asked Manhattan-based U.S. Magistrate ​Judge Sarah Netburn on Monday to pause for 45 days a case in which creditors are ā€Œseeking to seize funds linked to state oil company Petroleos de Venezuela while they determined who would represent Venezuela's interests.Ā 

The letter signaled potential cooperation between the opposition and ⁠Rodriguez's government in the safeguarding of U.S. assets including Houston-based ⁠oil refiner Citgo Petroleum from creditors, including holders of debt issued by PDVSA and Venezuela's government, companies whose Venezuelan assets were expropriated, and victims of acts of alleged terrorism.

Venezuela's information ministry, which handles media requests on the government's behalf, did ā€Œnot immediately respond to a request for comment.Ā Ā 

Relations between the opposition and Venezuela's socialist ⁠government have long been acrimonious. The opposition has controlled ā€ŒU.S. assets including Citgo since 2019, when Washington ​first imposed sanctions on PDVSA in a bid to pressure now-jailed President Nicolas Maduro to leave office.Ā 

Washington in March recognized Rodriguez as Venezuela's leader, following the ā€Œcapture of Maduro by U.S. forces. She is nowĀ preparing ​to take over the boards of ⁠PDVSA's U.S. subsidiaries including Citgo, Reuters reported on April 1, citing ā€Œfour people close to the preparations.

The U.S. ⁠recognition of Rodriguez's government prompted Netburn to ask the parties to the lawsuit to clarify who had authority to represent Venezuela in court.

Netburn on Monday granted the ​request to pause the ā€Œcase. Lawyers for the government and opposition are expected to update her on the ⁠selection of a lawyer to permanently represent ​Venezuela's interests by May 21.Ā Ā 

(Reporting by Luc Cohen in New York; Editing ​by Noeleen Walder and Bill Berkrot)

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