Deep beneath London’s streets, a multibillion-dollar question has resurfaced following Nicolás Maduro’s seizure by US authorities: who controls Venezuela’s gold reserves held at the Bank of England? The bullion, worth at least £1.4bn, has been frozen in Britain for years, entangled in legal battles and geopolitical manoeuvring.
Venezuela holds about 31 tonnes of gold in the Bank’s vaults on Threadneedle Street, representing roughly 15% of its total foreign currency reserves. UK court documents valued the hoard at about $1.95bn in 2020, but the gold price has since more than doubled, making the bars considerably more valuable today.
The gold has been stored in London since the 1980s, a common practice among governments. However, since 2018, Caracas has been blocked from repatriating the gold amid disputes over Maduro’s legitimacy. The UK, along with the US and other nations, refused to recognise Maduro as Venezuela’s legitimate leader after the contested 2018 presidential elections. Former US national security adviser John Bolton later revealed that the UK Foreign Office agreed to block the transfer at Washington’s request.
In 2020, the Maduro government sued in London courts to recover the gold, citing the need for pandemic funds, while then-opposition leader Juan Guaidó also claimed control. The case remains unresolved despite multiple legal twists. After Maduro’s capture, interim leader Delcy Rodríguez, who previously called the Bank’s refusal “blatant piracy”, has adopted a more conciliatory tone. UK Foreign Secretary Yvette Cooper told MPs on Monday that Britain continues not to recognise the current Venezuelan administration, maintaining pressure for a democratic transition.
The immobilisation of sovereign reserves is becoming increasingly contentious. Analysts view it as a driver of gold’s recent rally, amid growing mistrust of the US and the breakdown of the rules-based global order. The approach mirrors Western sanctions on Russian central bank assets after the 2022 invasion of Ukraine.
