Venezuela's Government and Opposition Could Cooperate to Protect State Assets in the US

(Patria) - Venezuela's government and its political opposition are seeking to coordinate the legal defense of the oil-rich country's assets in the United States, after Washington's official recognition of interim President Delcy Rodriguez raised questions about who could represent the country in US courts, Reuters reported.

Lawyers for the government and the opposition on Monday asked US Magistrate Judge Sarah Netburn, based in Manhattan, to pause for 45 days a case in which creditors are trying to seize assets linked to the state oil company Petroleos de Venezuela (PDVSA) until they determine who will represent Venezuela's interests.

The letter signaled potential cooperation between the opposition and the government in protecting US assets, including the Houston-based Citgo Petroleum refinery, from creditors, including holders of bonds issued by PDVSA and the Venezuelan government, companies whose Venezuelan assets were expropriated, and victims of alleged terrorism.

Relations between the opposition and Venezuela's socialist government have long been strained. The opposition has controlled US assets, including Citgo, since 2019, when Washington first imposed sanctions on PDVSA in an attempt to pressure President Nicolas Maduro to step down.

Washington recognized Rodriguez as Venezuela's leader in March, after US forces abducted Maduro. She is now preparing to take over the boards of PDVSA's US subsidiaries, including Citgo, Reuters reported on April 1, citing four people close to the preparations.

The US recognition of Delcy Rodriguez's government prompted Judge Netburn to ask the parties in the lawsuit to clarify who is authorized 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 inform her by May 21 of the selection of lawyers who will permanently represent Venezuela's interests.