Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Venezuela's rival leaders begin tug-of-war over London gold

Venezuela's rival leaders begin tug-of-war over London gold

Venezuela's rival leaders, President Nicolás Maduro and his western-backed opponent Juan Guaido, began a legal tug-of-war on Monday over $1 billion of the country's gold stashed deep under the Bank of England in London.
In a High Court hearing due to last four days, the Venezuelan central bank (BCV), controlled by Maduro’s government, is seeking an order to force the Bank of England to release the bullion that, like many countries, it stores there for safe keeping.

Lawyers representing the BCV say selling the gold, which amounts to around 15% of Venezuela’s foreign currency reserves, would fund the response to the coronavirus and bolster a health system gutted by six years of economic crisis.

Guaido’s lawyers meanwhile say the bullion is his to control as the British government, along with around 60 others around the world, recognise him as leader after claims Maduro rigged Venezuela’s last presidential election two years ago.

Monday’s start of the hearing saw the two legal teams lock horns over who is recognised as the legitimate leader.

BCV representative Nick Vineall QC argued a statement by the UK government in February 2019 that Guaido was interim president had been carefully nuanced and that diplomatic action since then had shown that Maduro was still seen as in charge.

He gave examples of how economic sanctions had referred to Maduro and how Maduro’s embassy staff had received correspondence on Queen Elizabeth II’s birthday last June.

Guaido’s designated representative to the UK, Vanessa Neumann, a former London socialite who once dated Rolling Stones singer Mick Jagger, had meanwhile been told that while she would be received in London, she would not receive a diplomatic visa, diplomatic immunity or have access to Venezuela’s diplomatic properties there.

“As far as western Europe is concerned for the most part... there are full diplomatic relations with the Maduro government,” Vineall said.

Andrew Fulton, Guaido’s representative in the London case on Monday responded by saying that the UK’s statement in February 2019 had been clear.

“Those two words ‘now recognise’ put that issue beyond doubt,” Fulton said. “That is of absolutely critical importance,” he added.

The Bank of England has yet to comment on the case.

It holds roughly 400,000 bars of gold worth more than 200 billion pounds ($250 billion) in its vaults under the City of London and is the second largest keeper of gold in the world after the New York Federal Reserve, according to its website.

The dispute over Venezuela’s gold began in May 2018 when Maduro secured re-election in a vote the opposition coalition boycotted and called a sham. Afterwards, Boris Johnson, then the British foreign minister, said: “We may have to tighten the economic screw on Venezuela.”

Concerned by mounting U.S. sanctions against the Maduro government, the BCV subsequently told the BOE it wanted to bring home 14 tonnes of gold it had stored there.

Around the year’s end, Calixto Ortega, the BCV president, travelled to London to discuss the move with BOE officials, according to Sarosh Zaiwalla, a London-based lawyer representing the BCV.

In its latest claim, the BCV has changed tack. It says that the funds from a sale would be funnelled into the United Nations Development Programme (UNDP) and be used to buy medicine and equipment to combat the COVID-19 crisis.

The opposition alleges Maduro wants to use the gold to pay off his foreign allies, which his lawyers deny. Over the past two years, Maduro’s government has removed some 30 tonnes from its reserves in Venezuela to sell abroad for much-needed hard currency, according to people familiar with the operations and the bank’s own data.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×