Senior officials within the Trump administration have confirmed that proceeds from the sale of seized Venezuelan oil are being held in multiple bank accounts, with the largest located in the Gulf state of Qatar, according to a new report.
The $500 Million Deal and the Qatar Connection
Officials speaking to Semafor disclosed that the United States has finalised its first major sale of Venezuelan crude, a transaction valued at $500 million. They defended the controversial decision to utilise a Qatari financial institution, arguing it provides a neutral location from which the substantial funds can be moved freely and securely, without the immediate risk of seizure by international creditors.
The move has sparked fierce criticism from leading Democrats. Senator Elizabeth Warren, the ranking Democrat on the Senate Finance Committee, launched a scathing attack, stating: "There is no basis in law for a president to set up an offshore account that he controls so that he can sell assets seized by the American military. That is precisely a move that a corrupt politician would be attracted to."
Background: The Seizure of Venezuelan Assets
This financial strategy follows the dramatic military intervention in Caracas in the early hours of Saturday, 3 January 2026, when U.S. forces detained the country's then-president, Nicolas Maduro, and his wife, Cilia Flores. They were transported to New York to face federal drug trafficking charges, to which Maduro has pleaded not guilty, maintaining he is Venezuela's legitimate leader.
In the operation's aftermath, President Trump announced that Washington would "run" Venezuela until stability allowed for free elections, a plan that included taking control of up to 50 million barrels of the nation's oil. The revenue from sales is intended to be distributed back to Caracas.
To facilitate this, Trump signed an executive order on Friday, 14 January 2026, shielding the revenue from courts or creditors. This step was deemed necessary given Venezuela's estimated $170 billion debt to international bondholders and companies.
Administration Defence and Industry Skepticism
Treasury Secretary Scott Bessent elaborated on the plan, telling the Economic Club of Minnesota that his department "will oversee the accounts" and manage disbursements back into Venezuela under the direction of Trump and Secretary of State Marco Rubio. "We're the bankers here; we don't direct the funds," Bessent stated.
A Treasury spokesperson affirmed their commitment to "supporting President Trump's efforts on behalf of the people of Venezuela." White House spokesperson Taylor Rogers called it a "historic energy deal" benefiting both American and Venezuelan people.
However, the administration faces scepticism from the very energy industry it seeks to engage. In a White House meeting last week, ExxonMobil CEO Darren Woods delivered a significant rebuff, declaring Venezuela "uninvestable" under current frameworks, citing the company's history of seized assets. Trump later retorted he would be "inclined to keep Exxon out," criticising their response.
The arrangement also draws attention to Trump's relationship with Qatar, previously scrutinised when he accepted a $400 million Boeing jet as a gift from the nation in May 2025. The Independent has contacted the White House and Treasury for further comment.
