Venezuela is fighting to reclaim 31 tons of gold bars worth an estimated $4 billion from the Bank of England, hoping to use the funds for recovery after last month’s devastating twin earthquakes.
The gold has been frozen in the UK bank’s vaults since 2018, when the UK refused to recognize Nicolas Maduro as the winner of Venezuela’s disputed presidential election. Now, with Maduro in US custody, acting president Delcy Rodríguez sees an opportunity to get the money back — but the UK government remains hesitant.
The earthquakes killed thousands and caused an economic hit equivalent to 6% of the country’s GDP, according to the United Nations Development Programme.
“That gold belongs to our people and should be used to address the terrible, tragic consequences of this double earthquake,” Rodríguez said on state television this month. “Venezuela has the resources to recover, to get back on its feet.”
The Gold’s History
The Bank of England holds some 400,000 gold bars in its vaults, including those of dozens of other nations. Venezuela deposited its 31 tons of gold there in 2008.
Around 20 years ago, the country was known to have some 300 tons of gold, but that figure is now thought to be much lower. The World Gold Council has more recently put the figure at 161 tons.
The fate of Venezuela’s gold has been in limbo for years amid a long-running legal battle. The bank froze the gold after the UK refused to recognize Maduro as the winner of the disputed 2018 election.
The Political Shift
Since Maduro’s capture by US forces in January, his former deputy Rodríguez has been made acting president. She has set about restoring diplomatic relations with the US — opening up Venezuela’s oil sector to US investment, releasing some political prisoners, and aligning her government with Washington’s regional projects.
Now she is hoping for a similar thaw with the UK.
Rodríguez has even written to King Charles III, asking for the gold to be released for reconstruction efforts, though as a constitutional monarch he does not get involved in political disputes.
The UK’s Position
Whether the UK government will listen is unclear. In the days following Maduro’s ouster, the UK’s then-Foreign Secretary Yvette Cooper said the UK still did not recognize the Venezuelan government.
When asked by a UK lawmaker specifically about the release of the gold, Cooper said: “The Bank of England must make decisions independently, but our principles focus on maintaining and promoting stability and the transition to democracy.”
Cooper has since been replaced as foreign minister following the UK’s appointment of a new prime minister, Andy Burnham. It is too early to know what position her successor — Ed Miliband — will take on the issue.
Progress Elsewhere
Rodríguez has had some good news when it comes to winning over doubters. She recently ended a seven-year freeze in relations with the International Monetary Fund, enabling Venezuela to secure $346 million from its own reserve resources to fund reconstruction efforts.
Whether she can have similar success with the Bank of England remains to be seen. Neither the Bank of England nor the Central Bank of Venezuela has responded to CNN’s enquiries on the state of the gold dispute.
The Bottom Line
Venezuela is seeking to reclaim 31 tons of gold worth an estimated $4 billion from the Bank of England to fund recovery after devastating twin earthquakes. The gold has been frozen since 2018 over a political dispute with the UK. Acting president Delcy Rodríguez hopes Maduro’s capture will help thaw relations, but the UK government remains hesitant. Rodríguez has written to King Charles III, though the monarch does not involve himself in political disputes.
