US-Venezuela Policy: Follow the Money

January 25, 2026
David R. Kotok
Reading Time: 6 minutes

The United States’ handling of Venezuelan oil revenue has evolved into one of the most unusual financial and diplomatic arrangements in modern American foreign policy. The core of the story is straightforward: The US government seized Venezuelan oil under long-standing sanctions authority, sold that oil on the global market, and placed a portion of the proceeds into a US-controlled bank account located in Qatar.

Kotok View

The Venezuelan oil transaction is a “first,” but it is certainly not a “last.” The amount of money involved will quickly grow into the billions and may eventually reach very large sums using this monetary transfer technique.

Currently this revenue is off the congressional budget radar screen and does not fall under congressional scrutiny. Debate about it is assured in the coming days, weeks, and months. Every politician wants to try to do something with a large and growing pool of money.

But scrutiny isn’t a change in law. Trump 2.0 will defend this novel mechanism against all legal attacks. We can assume that legal actions are coming from multiple sources, as all those with claims on Venezuela will try to assert them. Lawyers in this arena are in for a field day in a new business.

The monetary implications are also substantial. This is a US government-owned fund placed in a bank. It will assuredly start out invested in US T-bills. So, we now have a new buyer of US government debt, and that development has implications for a positive monetary force that will enable the financing of some of the additional deficits that Trump 2.0 seems to be delivering if deficit forecasts come close to their marks.

Other countries besides Venezuela become targets for this innovative financial approach. It’s simple: Seize sanctioned oil or other stuff; sell it; put the money where you control it and lawyers cannot get to it.

And maybe other jurisdictions besides the United States have similar possibilities. Where this ends is anybody’s guess. But, for now, this horse has left the barn. Global finances and indeed the international order of the global financial system have been changed with a single novel innovation. My expectation is that the changes will be huge. Here’s a single instance to consider: “US control of Venezuela oil risks debt restructuring showdown with China” | Reuters, https://www.reuters.com/business/energy/us-control-venezuela-oil-risks-debt-restructuring-showdown-with-china-2026-01-23/.

In succinct form, with citations, the report that follows explains how this happened, why it happened, and why the Qatar transfer stands out as historically unprecedented. The implications of this novel approach are massive.

INTRODUCTION: WHAT HAPPENED

Under Executive Orders 13808 (2017) and 13884 (2019), the US gained sweeping authority to block, redirect, and control Venezuelan government and PDVSA revenues. Using this authority, the US completed a $500 million sale of seized Venezuelan oil in early 2026.

Multiple mainstream outlets (listed below) confirm that a significant portion of the proceeds was deposited into a US-controlled account in Qatar.

Why Qatar?

Legal protection from creditor seizure
Diplomatic neutrality
Operational control by the US Treasury
Policy continuity with long-standing sanctions strategy

Why It Matters

The Qatar account reveals a long-term US strategy to manage Venezuela’s oil wealth outside the Maduro regime’s reach. It reflects a shift toward using neutral foreign jurisdictions and innovative legal structures to maintain leverage.

Timeline of Events

2017–2019 – Executive Orders 13808 and 13884 give the US control over Venezuelan oil revenue.

2025 –US seizes Venezuelan oil shipments under sanctions.

January 2026

US completes $500M sale of seized oil.
Proceeds placed in US-controlled accounts, including one in Qatar.

I. LEGAL FRAMEWORK: EXECUTIVE ORDERS

Executive Order 13808 (2017)

“Imposing Additional Sanctions With Respect to the Situation in Venezuela”
Federal Register:
https://www.federalregister.gov/documents/2017/08/29/2017-18468/imposing-additional-sanctions-with-respect-to-the-situation-in-venezuela

This order restricted the following:

PDVSA financing
Venezuelan government debt
Dividend payments

It laid the groundwork for US control over Venezuelan oil revenue.

Executive Order 13884 (2019)

“Blocking Property of the Government of Venezuela”
Federal Register:
https://www.federalregister.gov/documents/2019/08/07/2019-17052/blocking-property-of-the-government-of-venezuela

This order

Froze all Venezuelan government assets in the US
Gave the US Treasury full control over PDVSA-related funds
Authorized the US to hold, redirect, or safeguard Venezuelan oil revenue

This is the legal authority that enabled the Qatar account.

II. THE QATAR TRANSFER: MEDIA REPORTING

Below are mainstream sources confirming the Qatar account and the $500M oil sale.

CNN (via ABC17)

“Why the Trump administration is holding millions of dollars from Venezuelan oil sales in a Qatari bank”
https://abc17news.com/news/2026/01/15/why-the-trump-administration-is-holding-millions-of-dollars-from-venezuelan-oil-sales-in-a-qatari-bank/

CNN confirms that

The US completed a $500M oil sale
Funds were placed in US-controlled accounts, including one in Qatar
Qatar was chosen as a neutral jurisdiction

The Hill

“US makes initial $500M Venezuelan oil deal; some proceeds headed to Qatari bank”
https://thehill.com/homenews/administration/5689426-venezuela-oil-sale-trump/

The Hill confirms

The $500M sale
The Qatar account
US government control of the funds

Semafor (original scoop)

“US gets first $500 million Venezuelan oil deal, holding some proceeds in Qatar,”
https://www.semafor.com/article/2026/01/14/us-gets-first-500-million-venezuelan-oil-deal-holding-some-proceeds-in-qatar

Semafor broke the story:

Qatar account is the largest of the US-controlled accounts.
Funds are held to prevent legal seizure.
Intended for humanitarian and stabilization efforts

FOX Business

FOX carried syndicated reporting confirming the same facts (and reflecting the debate mentioned).

“Massie blasts Trump for selling ‘stolen’ Venezuelan oil ‘for his own piggy bank,’”
https://www.foxbusiness.com/politics/massie-blasts-trump-selling-venezuelan-oil-for-his-own-piggy-bank

CNBC

“Venezuela oil fetching 30% higher price, U.S. energy chief says, after first sale worth $500 million,” https://www.cnbc.com/2026/01/16/venezuela-oil-takeover-us-shipment-trump-.html?&qsearchterm=oil%20venezuela

III. ANALYSIS: WHY QATAR?

Across all mainstream reporting, the reasons are consistent:

Legal protection – Qatar provides a jurisdiction where Venezuelan creditors cannot seize funds.
Diplomatic neutrality – Qatar is acceptable to both US and international partners.
Treasury control – Funds remain under US government control, not private individuals.
No personal benefit to Trump

All outlets agree:

Funds are not deposited into Trump personal accounts.
Funds are not controlled by private individuals.
Funds remain under US government custody.

IV. QATAR BANKS

This report section covers the banking landscape in Qatar as it relates to Global Systemically Important Banks (G-SIBs), the current international controversy involving a $500 million Venezuelan oil deposit, and the list of creditors seeking to claim Venezuelan assets.

G-SIB Presence in Qatar

There are no banks headquartered in Qatar with a G-SIB designation on the 2025 Financial Stability Board (FSB) list. However, several globally designated banks maintain physical operations in the country:

HSBC: Operating in Qatar since 1954, providing full retail and global banking services via its HSBC Qatar branches.
Standard Chartered: Present since 1950, focusing on international corporate and institutional banking from its Standard Chartered Qatar offices.
BNP Paribas: Has maintained a commercial branch in Qatar since 1973.
Bank of China: Operates a branch within the Qatar Financial Centre.

While Qatar National Bank (QNB) is a major regional player, it is considered a Domestically Systemically Important Bank (D-SIB) rather than a G-SIB.

The $500 Million Venezuela Oil Deposit

In mid-January 2026, the US government completed its first sale of Venezuelan crude oil, totaling approximately $500 million.

Holding institution: These proceeds were deposited into a specialized account at Qatar National Bank (QNB), which acts as a neutral “Qatar trust”.
Structure: JPMorgan Chase reportedly serves as the US correspondent bank, while the US Treasury maintains final control over all disbursements.
Distribution: Roughly $300 million is earmarked for distribution to private Venezuelan banks to support local currency stability and social projects.

US Legal Defense Against Creditor Claims

To prevent creditors from seizing these funds to satisfy past claims related to asset expropriations, the US government has implemented a multi-layered legal defense:

Executive Order 14373: Issued on January 9, 2026, this order declares a national emergency and explicitly voids any judicial process—including liens or garnishments—against these funds to protect US foreign policy goals.
Sovereign Property Designation: The US has designated the money as sovereign Venezuelan property held in a “custodial and governmental” capacity, aiming to shield it under the Foreign Sovereign Immunities Act (FSIA).
Extraterritorial Domicile: Placing the money in Qatar creates a physical barrier, making immediate judicial seizure by US-based creditors more difficult.

V. LIST OF POTENTIAL CREDITOR CLAIMS

Creditors have filed claims totaling over $25 billion against Venezuela for expropriated assets and defaulted debt. The following companies have major claims, many of which are being pursued through a US court process to auction shares of PDV Holding (parent company of Citgo, Venezuela’s US refining arm) in Delaware:

ConocoPhillips: Holds the largest claim, with approximately $12 billion in outstanding awards related to the 2007 nationalization of its oil projects. This includes an $8.5 billion award from the World Bank’s ICSID tribunal and another $2 billion from an International Chamber of Commerce (ICC) tribunal.
Crystallex International Corp: A Canadian mining company that won a $1.4 billion arbitration award plus interest over the expropriation of the Las Cristinas gold mine in 2011.
ExxonMobil: Has outstanding arbitration cases related to its expropriated oil projects in 2007, with potential awards estimated at up to $20 billion.
O-I Glass: The glass manufacturer has a recognized claim of around $700 million.
Tidewater: An offshore vessel company with an approved claim of $80 million.
Siemens Energy: Has a recognized claim of about $163 million.
Huntington Ingalls Industries (formerly Northrop Grumman Ship Systems, Inc.).
ACL Investments, Koch Minerals, Red Tree Investments, Rusoro Mining, and Gold Reserve are among other companies with pending claims.

These claims are the primary target of the US government’s legal maneuvering to protect the new oil revenues from being financially attacked by private creditors.

VI. HISTORICAL PRECEDENTS AND WHY THE QATAR TRANSFER IS UNIQUE

Below are the historical cases and the direct links supporting each.