Washington Managed $12.2 Billion of Venezuelan Oil Revenue in Nine Months
A KPMG report details how US authorities controlled Venezuelan resource income and distribution.
1US Control Over Venezuelan Assets
Between January and September, the United States maintained control over 12.264 billion dollars generated from Venezuelan oil and resource exports. The Venezuelan government was required to seek explicit authorization from Washington before withdrawing any funds. During this nine-month period, the US approved the release of 12.108 billion dollars for various national expenditures.
2Initial Operations in Qatar
Early sales were processed through a provisional account at the Qatar National Bank to prevent potential asset seizures by creditors. Approximately 500 million dollars passed through this Qatari channel before operations shifted to the United States. By September, only 50,000 dollars remained in the Qatari account, serving as a residual balance for the Venezuelan government.
3The Role of KPMG Supervision
The Department of State hired KPMG to supervise these financial operations starting in April, following congressional inquiries. KPMG received 18.18 million dollars in fees for their advisory and oversight services, paid by the Venezuelan administration. The firm's report details operational flows but does not provide an independent certification regarding the final destination of every dollar.
4Currency Distribution Mechanisms
The Central Bank of Venezuela utilized the majority of these funds to supply dollars to the domestic economy. Approximately 11.410 billion dollars were channeled through currency auctions and electronic assignments to commercial banks. Major institutions like the Bank of Venezuela and Banesco received billions to facilitate import payments and provide foreign currency to private citizens.
5Physical Cash Logistics
Between July and September, 549.76 million dollars were delivered to Venezuela in physical cash via five separate air shipments. These funds were transported under strict security protocols to the Central Bank’s vaults. By the end of September, 356.9 million dollars had been distributed to five commercial banks, while the remainder awaited further authorization.
6Sectoral Allocation of Funds
Legal entities received 9.366 billion dollars, with the largest portions directed toward food, consumer goods, and agriculture. These sectors accounted for over 48 percent of the total corporate allocations. Additionally, the healthcare and pharmaceutical sector received 531.7 million dollars, highlighting the focus on maintaining essential supplies for the Venezuelan population during the period.
7Direct Payments to Suppliers
Direct payments to specific suppliers included 26.14 million dollars for Chagas disease medication and diagnostic materials. Other significant expenditures covered dialysis supplies, vaccines, and coal mining equipment. Furthermore, the US law firm Greenberg Traurig received five million dollars for legal services, while various logistics and banking fees were deducted from the total.
8Operational Oversight and Limitations
The report acknowledges that oversight mechanisms were implemented in stages, with KPMG joining three months after the initial fund movements. While the system generated 12.52 million dollars in interest, the US maintained strict control over the remaining 168.61 million dollars in custody as of September 30, requiring written authorization for all final disbursements.