President Trump issued an executive order [10] Jan. 10 to block judicial processes from being instituted against Venezuelan oil funds held in the US, on the basis that it would "materially harm the national security and foreign policy of the United States."
The order states that any judicial proceedings against funds from "the sale of natural resources" from the Venezuelan government would inhibit efforts to "ensure economic and political stability" in the country. It adds that they would interfere with numerous US foreign policy objectives, such as ending irregular migration, cracking down on the influx of narcotics, and protecting against foreign actors such as Iran and Hezbollah. It describes potential judicial processes as an "unusual and extraordinary threat," and declares a national emergency.
There are three legal bases for the order, including the International Emergency Economic Powers Act [17], which gives the president a broad range of economic powers in national emergencies; the National Emergencies Act [18], which allows the president to declare national emergencies; and Section 301 [19] of Title 3 of the US Code, which allows the president to delegate powers.
This order follows statements [11] from Trump that US oil companies will invest billions into Venezuela, with his Energy Secretary Chris Wright saying [12] that the US will control and market Venezuela's oil "indefinitely." The president called a meeting [20] on Friday with oil executives to discuss rebuilding the country's oil infrastructure, and announced that 30 million barrels of oil, worth $4 billion, are currently on their way to the US.
The CEO of ExxonMobil, Darren Woods, expressed concern about conditions in Venezuela, and said that country is currently "un-investable." Trump responded [13] angrily that he was "inclined" to keep ExxonMobil out of Venezuela.
Companies including ExxonMobil and ConocoPhillips say that [14] Venezuela owes them billions of dollars over lost investments. Trump's executive order could hinder [15] these companies from recovering their claims.
From JURIST [21], Jan. 12. Used with permission.
