The Strategist

Venezuela: British court ruling on Venezuelan gold poses serious risks to investors

12/21/2021 - 08:34

The UK Supreme Court ruling on Venezuela's gold poses serious risks to investors who have entrusted their funds to the UK financial system, says the Latin American country's Foreign Office.

Mark Herpel
Mark Herpel
Britain's Supreme Court returned legal proceedings over Venezuela's gold reserves held at the Bank of England to the Court of Arbitration after partially satisfying Venezuela's self-proclaimed president Juan Guaido's claim for $1 billion worth of gold bullions.

"Venezuela condemns the decision of the UK Supreme Court which... interferes with the Venezuelan state's right to dispose of part of its international reserves deposited with the Bank of England through the Central Bank of Venezuela," the Foreign Office said in a statement.

"The said decision violates the rules of public international law, Venezuelan constitutional law and British law, at the same time it poses a serious risk to the investments that the international community has entrusted to the British financial system, which has illegally resorted to fraud to seize the resources entrusted to it," the ministry said.

According to the ministry, the Supreme Court has shown by its decision that it is not impartial and independent of the state.

Venezuela will continue to use all the resources at its disposal to protect international reserves.

The dispute between the Bank of Venezuela and the Bank of England over the return of €930 million worth of gold bullion held in the UK is now in its third year in London. A London court recognised the legitimacy of the "interim presidency" of opposition leader Juan Guaido as an argument not to return the gold to the current Venezuelan government. The English Court of Appeal later sided with the Bank of Venezuela, which appealed against the London court's decision.