“Pressure must be maintained to demand that the gold is returned to Venezuela & that all the US’s illegal sanctions – supported by Britain – are lifted.”
By Tim Young, Venezuela Solidarity Campaign
Did you know that the Bank of England is still withholding 31 tonnes of gold bars currently worth about $4.6 billion which Venezuela, through its Central Bank of Venezuela, had deposited there, despite repeated calls for the gold to be returned to the country?
Since two massive earthquakes struck Venezuela on 24 June, causing over 20,000 casualties and an estimated $37 billion worth of physical damage (equivalent to around 33% of Venezuela’s GDP), Venezuela needs its gold back more than ever.
Venezuelan governments of different shades politically had long stored gold reserves with the Bank of England with no problem. But the battle to reclaim its deposit of 31 tonnes of gold from the Bank’s vaults began back in 2018. At the time, the first Trump administration was using all means at its disposal to cut Venezuela off from its overseas assets, imposing an astonishing number of sanctions – over a thousand – on the country.
Since then, the Bank has consistently refused to transfer the gold back to Venezuela, claiming this would infringe the US government’s sanctions against Venezuela, which have impacted heavily on the poorest and most vulnerable Venezuelan citizens.
The Bank’s stance hardened after January 2019 when Juan Guaidó, the then-President of the National Assembly, declared himself “interim president” of the country in an attempt to grab power. The United States, followed by a number of other countries, rushed to offer support.
Following the US’s lead, the then British Foreign Secretary Jeremy Hunt declared in February 2019 that the UK also recognised Guaidó “as the constitutional interim President of Venezuela, until credible presidential elections can be held” ‒ and continued to do so despite his involvement in a string of scandals and crimes involving corruption, association with drug traffickers and coup plotting.
On the basis of the US’s recognition and a further supporting statement from the Foreign Office, a UK Supreme Court judgement accepted that Guaidó was the head of the Venezuelan state and therefore legally entitled to appoint the board of the Central Bank of Venezuela (BCV).
Venezuela’s government meanwhile argued in the courts in response that it was the only “validly appointed authority” to oversee the BCV’s foreign assets.
This particular pretence for not returning Venezuela’s gold is now impossible to maintain. Guaidó is not an important part of the Venezuelan or international political scene and hasn’t been for some time. To give one example, following 2020’s elections to the Venezuelan National Assembly, the EU’s 27 states said in January 2021 that they could no longer legally recognise him after he boycotted the election and lost his position as president of the outgoing assembly.
Furthermore, the British government acknowledged in January 2023 that it no longer recognised Guaidó.
Of additional significance more recently is that the International Monetary Fund (IMF) announced in April 2026 that formal relations with Venezuela had been re-established. This move reverses the decision the IMF took in 2019 when it followed US orders by stripping the country of its Special Drawing Rights (SDRs), a system created by the IMF to “provide liquidity to global economies and offer additional reserves to member countries in times of crisis.”
At the onset of the COVID-19 pandemic, the IMF stopped Venezuela from accessing $5 billion in SDRs to which it was entitled, amidst the severe hardship caused by the virus. Venezuela is currently seeking for these assets, still frozen due to US sanctions, to be sent to the country for earthquake relief work, although it has been able to unlock $346 million from its IMF reserve tranche to fund some urgent needs.
The IMF – of which Britain is a voting member – now resuming relations with Venezuela is yet another reason why the British government should enable the gold being quickly returned to Venezuela, and gives a clear precedent that could be followed.
However, even if the gold is returned to Venezuela, illegal US sanctions on the country are still in place, restricting its economic activity and impacting severely on its people. At the time of writing, over a thousand of these damaging sanctions are in place – and are widely opposed across the political spectrum in Venezuela itself, including by both pro- and anti-government forces.
Pressure must be maintained to demand that the gold is returned to Venezuela and that all the US’s illegal sanctions – supported by Britain – are lifted.
- SIGN THE PETITION NOW: Give Venezuela Back Its Gold!
- ONLINE EVENT: Emergency in Venezuela – End all sanctions, give back the gold! This Tuesday July 28, 18.30. Register here . With Jeremy Corbyn and Venezuelan speakers.
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