Venezuela government and opposition seek joint line in US asset case

Venezuela’s government and opposition, which are seeking to coordinate the country’s legal defense over its US-based assets, have raised questions about who is authorized to represent the country in US courts.

According to a Reuters report, lawyers for Rodriguez’s government and the opposition on Monday asked US Magistrate Judge Sarah Netburn in Manhattan to pause for 45 days a case in which creditors are seeking to seize funds linked to state oil company Petroleos de Venezuela (PDVSA) until it is determined who will represent Venezuela’s interests.

The letter pointed to possible cooperation between the opposition and Rodriguez’s government to protect US assets, including Houston-based oil refiner Citgo Petroleum, from creditors such as holders of debt issued by PDVSA and the Venezuelan government, companies whose assets in Venezuela were expropriated, and victims of alleged acts of terrorism.

Venezuela’s Information Ministry, which handles media inquiries on behalf of the government, did not immediately respond to a request for comment.

Relations between the opposition and Venezuela’s socialist government have long been tense. The opposition has controlled US assets, including Citgo, since 2019, when Washington first imposed sanctions on PDVSA in an effort to force now-jailed President Nicolas Maduro from office.

In March, Washington recognized Rodriguez as Venezuela’s leader after Maduro was captured by US forces. Reuters reported on April 1, citing four people close to the preparations, that Rodriguez is now preparing to take over the boards of PDVSA’s US subsidiaries, including Citgo.

Following US recognition of Rodriguez’s government, Netburn asked the parties in the lawsuit to clarify who had the authority to represent Venezuela in court.

Netburn on Monday granted the request to pause the case. Lawyers for the government and the opposition are expected to update her by May 21 on the selection of counsel that will permanently represent Venezuela’s interests.