Venezuela Oil Dollars : The Qatar connection

Picture Credit: by The Mercury News

Hundreds of millions of dollars raised by the United States from the sale of Venezuelan oil are being routed through Qatar, a move that could accelerate the flow of badly needed funds to Venezuela while also raising concerns about oversight and transparency.

The Trump administration confirmed this week that the first sale of Venezuelan oil generated $500 million, marking the beginning of what officials expect will be billions of dollars in revenue over the coming months or even years. Instead of being held in US financial institutions or transferred directly to Caracas, the funds were sent to an account in Qatar, according to officials familiar with the arrangement.

Treasury Secretary Scott Bessent said the proceeds would begin flowing into Venezuela as early as Thursday, and signs suggest the money may already be entering the country. Venezuelan banks have reportedly begun advertising available cash, indicating that oil revenues have started circulating within the financial system.

Venezuela has been largely cut off from global banking for years due to international sanctions and longstanding disputes with foreign companies whose oil assets were seized. President Donald Trump has emphasized that the proceeds from the oil sales should benefit Venezuela directly, while preventing creditors with legal claims from accessing the funds. An executive order issued last week blocks liens or legal judgments against the revenue, arguing that such actions would undermine efforts to stabilize the country.

Picture Credit: by Apa

Routing the funds through Qatar may help shield the money from legal challenges. Qatari banks are expected to auction the funds to Venezuelan banks, prioritizing food, medicine, and small businesses, with oversight from Venezuela’s central bank under US guidelines.

However, critics warn the arrangement lacks transparency. Some experts fear the funds could be misused by Venezuela’s leadership, while others question the legality of holding oil proceeds offshore. Democratic Senator Elizabeth Warren described the move as troubling, saying it resembles a tactic favored by corrupt officials.

The administration maintains that the approach reflects Venezuela’s isolation from international banking and ongoing legal constraints.

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