The Venezuelan government and the political opposition are seeking to coordinate the legal defense of this oil country’s assets in the United States. This approach comes after Washington’s official recognition of interim President Delcy Rodriguez raised questions about the legitimacy of the country’s representation before American courts.
Lawyers for the Rodriguez government and the opposition asked Manhattan federal judge Sarah Netburn on Monday to suspend for 45 days a proceeding in which creditors are trying to seize funds linked to the state oil company Petroleos de Venezuela (PDVSA), while determine who will defend Venezuela’s interests.
This letter testifies to potential cooperation between the opposition and the Rodriguez government to preserve American assets, in particular the refiner Citgo Petroleum based in Houston, against creditors. These include holders of debt securities issued by PDVSA and the Venezuelan state, companies whose assets have been expropriated in Venezuela, as well as victims of alleged acts of terrorism.
Venezuela’s Information Ministry, which manages press relations on behalf of the government, did not immediately respond to requests for comment.
Relations between the opposition and Venezuela’s socialist government have long been marked by acrimony. The opposition has controlled US assets, including Citgo, since 2019, when Washington first imposed sanctions against PDVSA to pressure now-incarcerated President Nicolas Maduro to leave office.
In March, Washington recognized Rodriguez as leader of Venezuela, following Maduro’s capture by US forces. She is now preparing to take control of the boards of directors of PDVSA’s American subsidiaries, including Citgo, Reuters reported on April 1, citing four sources familiar with the matter.
The recognition of the Rodriguez government by the United States prompted Judge Netburn to ask the parties to the dispute to clarify who had the authority to represent Venezuela in court.
On Monday, Judge Netburn granted the request to stay the case. Government and opposition lawyers are expected to inform him by May 21 of the choice of counsel to permanently represent Venezuela’s interests.
