A deal is being negotiated to transfer approximately 31 tonnes of Venezuelan gold bullion — valued at an estimated $4 billion — from the Bank of England's vaults in London to the Federal Reserve Bank of New York, bringing a potential resolution to a seven-year dispute over the country's frozen sovereign reserves.
The agreement, which was announced last month by the Venezuelan government and opposition, would grant interim leader Delcy Rodríguez's administration legal control over the assets without permitting immediate liquidation or sale. Instead, the gold could potentially serve as collateral for government borrowing, including financing reconstruction efforts after twin earthquakes struck Venezuela in June.
"The gold is going to the US but Delcy won't have direct access to it," an opposition figure involved in the talks told the Financial Times. "It will be supervised and restricted."
The legal battle over the bullion dates back to 2019, when international recognition shifted away from former President Nicolás Maduro and the UK, US and other governments recognized opposition leader Juan Guaidó as Venezuela's legitimate interim president. Maduro was seized in a US raid in January.
The British Foreign Office said it is not a party to the ongoing legal case determining control of the gold. "The government is not a party in the legal case to determine who should have control of Venezuelan gold held in the Bank of England," a spokesperson stated.
The Bank of England added that it cannot act on instructions until a UK court settles the dispute and determines who holds legal authority over the account. "This requires the parties involved in the case to approach the UK Court to settle the dispute," the bank said.
The proposed transfer comes as diplomatic ties between the UK and Venezuela have recently improved. The two countries agreed to upgrade relations, with Britain moving to restore an ambassador in Caracas following discussions with National Assembly chief Jorge Rodríguez.
In April, the International Monetary Fund resumed official dealings with Caracas after a seven-year hiatus, signaling a broader shift in how Venezuela's frozen assets are being treated internationally.
