U.S. Returns Full $500 Million From First Phase of Venezuelan Oil Sales

The United States has returned the full $500 million earned from the first phase of Venezuelan oil sales to the Venezuelan government, a U.S. official said on Tuesday.

Speaking on condition of anonymity, the official said that the final $200 million was transferred to Venezuela recently, completing the return of the entire amount generated from the initial oil sale.

“The Venezuelan government has now officially received the full $500 million from the first oil sale,” the official said, adding that the funds will be spent, at the discretion of the U.S. government, “for the welfare of the Venezuelan people.”

Last week, U.S. Secretary of State Marco Rubio told Congress that U.S. involvement in the Venezuelan oil sale was a short-term initiative. He said the goal was to maintain stability in the country, keep the government functioning, and support ordinary citizens.

“We essentially allowed Venezuela to generate income using its own oil,” Rubio said. “This made it possible to pay the salaries of teachers, firefighters, and police officers, and to keep basic state operations running so the entire system does not collapse.”

U.S. officials said the funds had been held in Qatar and were used as a “temporary and short-term fund” to ensure Venezuela had access to necessary financing.

They added that there are plans to transfer future proceeds from Venezuelan oil sales to a fund based in the United States. From there, expenditures by the Venezuelan government and its agencies would be approved through a defined process.

The oil sale arrangement was part of an agreement reached last month between Washington and Caracas. That agreement followed a U.S. military operation on January 3, during which Venezuelan President Nicolás Maduro was detained.